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Can Taiwan's Economic Miracle Persevere?

  Funds were also used to rescue some high-profile corporations and troubled financial institutions. Additional assistance came from Kuomingtang-owned businesses to bail out some problem banks. Just so that bank's publishes results would not suffer as a result of undertaking such support measures, their loan loss provisions are spread out over multiple years and problem loan classification standards are eased.
This kind of compromise runs counter to the urgent requirement for reporting transparency. Moody's is concerned that these support measures would undermine Taiwan's already eroded global competitiveness. These short-sighted stop-gap expedient actions will no doubt cover up a lot of weaknesses and would-be failures in the banking and industrial sectors and simply prolong the pain and agony.


     Given the problematic political relationship between the two countries with no solution in sight, the current investment and trade commitment in China is both too much in terms of magnitude and too concentrated in terms of dependency risk. This problem will be discussed in greater detail as a separate subject Thursday.


     Before the current administration , the two former President Chiangs did not get involved in economic matters and entrusted them to their key aides who had established channels to hear grievances, suggestions, formulate policies, and take actions. With the Taiwanization of the ruling party, many high-profile business leaders have moved to the nerve center of the party machine and have easy and frequent access to President Lee Teng-hui. What came out of this new situation is excessive and undue influence of Big Business on government policy and decision-making. Lee himself has been prone to influence peddling and would make policy or decision over the objection of his related cabinet members and at the expense of existing rulings or guidelines. This pathetic problem of "rule of man, not rule of law" reached its height perhaps in the case of the two Korean presidents who were indicted and punished for the high crimes of selling off their offices to the chaebols and big banks. Two things should be learned from this example-one, governments have to keep Big Business at arm's length at all time and two, how in the world could they have hidden all those bribe monies from auditors?

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