They Do Get Paid to Think!Taiwan Think Tanks Come of Age

If you were to take a spring afternoon and make a tour of think tanks in Taipei, the Chengchi University Institute of International Relations, located in a lovely setting in the Taipei suburb of Mucha, with its strongly scholastic atmosphere, might remind you of the Hoover Institution at Stanford University in the US. If you come into the downtown area, the National Policy Foundation and the Taiwan Research Institute, set in the middle of the concrete jungle, would, on the other hand, be more reminiscent of the Heritage Foundation or the Brookings Institution in Washington, with large numbers of retired government officials, and therefore tight security, in their modern office buildings. If you were to enter the Chung-Hua Institution for Economic Research alongside noisy and busy Keelung Road, you would find the holdings in the library and data center to be in no way inferior to any similar financial and economic think tank in the States.

Diversified and vigorous

In terms of hardware, the think tanks in Taiwan are comparable to those in the US and Europe. In terms of mission, besides the Taiwan Thinktank and Taiwan Advocates, which currently both only organize forums, most other think tanks have large numbers of researchers, and have good reputations in academia, political circles, and the business community. In terms of research orientation, except for the Institute of International Relations and the Chung-Hua Institution for Economic Research, both of which are academic in focus, most of the think tanks are policy-oriented; they propose policies on issues of immediate social importance, or accept commissions from the private sector or from government agencies to study specific questions in depth.

Although in comparison with the US, think tanks in Taiwan are more overtly political and have much shorter histories, they display unique characteristics in terms of research because of the specific needs of Taiwan's political and economic transformation. For example, the three major financial and economic think tanks-the Chung-Hua Institution for Economic Research, the Taiwan Institute of Economic Research, and the Taiwan Research Institute-are quite well-known abroad because of Taiwan's economic achievements.

Other brain trusts focus on international and cross-strait matters, such as the Institute of International Relations, the Institute for National Policy Research (INPR), and the National Policy Foundation. Because they have long maintained close ties with think tanks in the US and PRC, in fact they also play the role of "a second channel" in Taiwan-PRC-US trilateral relations, serving as a behind-the-scenes force for cross-strait peace. When former foreign minister Tien Hung-mao, who had previously been the director of the INPR, took over the foreign ministry, he emphasized cooperation with US and PRC think tanks. On several occasions when he visited the US he stopped at important think tanks for "closed-door sessions."

Much attention goes to the sources of think tanks' funding. Most of them operate as foundations. You could say that Taiwan's think tanks are half official and half non-governmental. Those established relatively early on have been funded by the government, while those founded more recently have mainly relied on corporate contributions. For example, the Institute of International Relations, founded in 1943, is affiliated with National Chengchi University, so its bills are all footed by the Ministry of Education. The Chung-Hua Institution for Economic Research, founded in 1981, was established with a grant of NT$1 billion from the government.

The Taiwan Institute of Economic Research, on the other hand, got its NT$60 million in founding money from Koo Chen-fu of Koo's Group, with similar stories elsewhere: the INPR was set up with a donation of NT$120 million from Chang Yung-fa of the Evergreen Group, the Taiwan Research Institute collected more than NT$100 million from various corporate sponsors, and the Taiwan Thinktank, established at the end of last year, was founded with donations of NT$60 million from businesspeople close to President Chen Shui-bian.

Many mouths to feed

When the economy was humming along, endowments were adequate to support operations. But in recent years, interest rates have dropped sharply, and think tanks must now compete for research budgets from government and private industry, or otherwise make adjustments due to the limited availability of funding.

Take for example the Taiwan Research Institute. President Liu Tai-ying says that most of the financial sourcing for the TRI comes from government-sponsored research projects, accounting for 60-80% of the total budget. In Taiwan, because enterprises are not nearly as large as those in the US, Europe, or Japan, and because there is not much of a tradition of private sponsorship of research, commissions for studies on behalf of private corporations account for less than 20% of TRI money. The interest from the endowment accounts for only a small fraction of the funding for think tank operations.

With, as a Chinese saying has it, too many monks and too little rice gruel, increased competition squeezes the financial resources of the various large think tanks. David S. Hong, vice president of the Taiwan Institute of Economic Research, cannot help but sigh: "The TIER has always focused on policy research, and over a long period of time has established good relations with government agencies. But in the last few years, it has become much more difficult to bid for government-commissioned projects." Hong does not beat around the bush: competition for money among think tanks has become overt.

If even policy research think tanks face financial difficulties, then you can imagine that the blow to the academically-oriented Chung-Hua Institution for Economic Research is even greater.

"Chung-Hua is going through adjustments. Besides continuing to do independent research on major economic issues, as we traditionally have, we are also actively looking for government-commissioned projects," says Wu Ho-mou, the institution's vice president. Despite this, Chung-Hua has had no choice but to streamline, and two years ago began offering retirement packages to its researchers.

Another example of an institution facing adjustments because of financial competition is the Institute for National Policy Research, which was also hurt by a fire in its offices in the Tuntex Building in Hsichih. Lo Chih-cheng says that the INPR had already found it increasingly difficult to operate as a result of a lack of funds, and the fire finally decided the issue, forcing the INPR to transform itself into a forum-centered think tank. Now it periodically holds conferences on important issues, but has let go all of its full-time researchers.

Cutbacks have also affected other think tanks, with the results reverberating throughout the newly established "think tank ecology."

As Ko Chen-en, a director of the Taiwan Thinktank, says, taking the long view, that it is still to be hoped that Taiwan brain trusts can develop from forum sponsors into comprehensive research institutions. It is just that with the economy in the doldrums, corporate contributions are limited, and it is impossible to invest in professional researchers, so think tanks have to settle for the forum mode. Though the ideal remains intact, Ko ventures no prediction as to how long it will take for Taiwan's think tanks to develop into comprehensive research institutions.

Besides increasingly intense competition for funding, another change produced by the large number of think tanks, one with both positive and negative aspects, is in their function as "talent pools."

In through the out door

In the past, academics in Taiwan were always criticized for going into government but never coming back out again. The "revolving door" never came full circle. But the transfer of political power to the DPP two years ago has lubricated the door. The most clear-cut example is at the National Policy Foundation, established by the KMT. It has absorbed a large number of officials from the previous administration, including P.K. Chiang, Paul C.H. Chiu, and Su Chi. Other famous examples in this vein include Chung Chin, formerly head of the Government Information Office and a minister without portfolio under President Chen, who has since returned to the Chung-Hua Institution for Economic Research, and the INPR's Lo Chih-cheng, who was formerly director of research and planning at the Ministry of Foreign Affairs.

"Moving back and forth between government and academia is definitely helpful to combining theory with practice," say Lo, who was been once through the revolving door. Of course, think tanks aren't the only "revolving door" option, but recently the Ministry of Education stipulated that university professors are now only allowed two leaves of absence in their careers, each of two years, to move into government. With politics being so uncertain these days, professors must consider carefully before taking government posts.

As a result, explains Ko Chen-en: "Campus academics face a tough choice, so the revolving door function will devolve upon non-governmental think tanks, which is a good thing." This should spur the development of "star analysts" at Taiwan think tanks.

Looking for talent

Although the increase in think tanks has created more possibilities for the revolving door to function, this is not of much help when it comes to the cultivation of talented people by the think tanks themselves.

"In the past both the pay and the research environment were better at Chung-Hua than at universities, but these days universities are the preferred choice for scholars of economics. Finances are tight at think tanks, universities have four months of vacation in summer and winter, professors can get research grants in their own names, and there are more opportunities to bring their talents into play and to be seen by the outside world than there are for researchers in a think tank. It is consequently much more difficult for think tanks to recruit talented people," says Chung Hua's Wu Ho-mou.

A similar situation is occurring at the Taiwan Institute of Economic Research. David Hong states that most of the researchers at TIER have MA degrees, and their salaries are paid in accordance with Ministry of Education regulations, based on the degree held by the employee. But this is a lot less money than they could make in the private sector, so talented people go into corporate life, which naturally affects the success of think tanks at fulfilling their role or accumulating a pool of human resources.

The rising number of think tanks has had negative as well as positive effects. Cheng Hsing-ti, a professor of public administration at National Chengchi University, thus strongly encourages think tanks to make strategic alliances.

"The Swiss World Economic Forum every year invites elites from the worlds of business, government, and academia to discuss globalization and other major subjects. This is the best example of a strategic alliance for a think tank," says Cheng. Getting leading figures from various fields to come to Taiwan to discuss issues would benefit not only Taiwan's think tanks, but the country as a whole, because Taiwan officials are typically excluded from international forums abroad for diplomatic reasons.

In fact, think tanks within Taiwan have already begun to come up with some cooperative projects. Lo Chih-cheng says that because resources are in short supply and there is considerable overlap in terms of issue areas and personnel, the Taiwan Thinktank, the Taiwan Research Institute, and the Institute for National Policy Research have already begun to discuss the possibility of working together. At the start they will simply exchange information and jointly sponsor activities, and then explore further possibilities for cooperation later on.

But because some think tanks have clear political orientations, will people consider these political alliances? Or, will the smaller think tanks be swallowed up by the larger? Lo Chih-cheng thinks this is not likely, because every think tank has its own special perspective, and once established it would be difficult to do without them.

Liu Tai-ying suggests that the market for comprehensive research institutions in Taiwan is already saturated, so that think tanks established in the future can only be of the "forum" type. Because there is much greater overlap between these forum type think tanks in terms of personnel, cooperation will become the future trend for think tanks in Taiwan.

The rise and transformation of think tanks is like a microcosm of the democratization process. Will pluralized think tanks become contributing players to politics, and guide the country into the future? We'll just have to wait and see.

NCCU Institute of International Relations

Background: Set up in 1953 with government fund-

ing, as the Association of International Research. At almost 50 years old the IIR is Taiwan's longest-established think tank. Initially its main function was to provide strategic proposals on international and cross-strait relations, and in its early years it was famous as a rich source of information on mainland China under the communist regime. After various changes in the course of Taiwan's democratization, the institute is now affiliated to National Chengchi University, and has cast off its mantle as an exclusively KMT think tank to become one of Taiwan's most important centers of research in international politics.

Research fields: Four research divisions investigate the political and economic relations of countries worldwide; international organizations; mainland China; etc. Journals published by the IIR include Issues and Studies (with different editions in Chinese, English and other languages), Mainland China Studies Monthly, and Americas and Europe Quarterly. The English edition of Issues and Studies holds first place in the National Science Council's ranking of academic journals.

Website: iir.nccu.edu.tw

Chung-Hua Institution for Economic Research

Background: Founded by the government in 1981 in response to the severance of diplomatic relations with the US, in order to assure Taiwan's sustainable economic development. Mainly engages in academic research into major national economic issues. In recent years it has also carried out commissioned research for government agencies. It is Taiwan's leading center for theoretical and practical research into PRC economic trends, and has abundant information on PRC financial and economic issues. Its researchers are highly qualified, being mostly PhD holders.

Research fields: Three research divisions: mainland China, international, and Taiwan; and three research centers: energy and environmental studies, economic forecasting, and economic and financial strategies. Produces numerous financial and economic publications, including research monographs, conference proceedings, and the monthly Economic Outlook.

Website: www.cier.edu.tw

Taiwan Research Institute

Background: Established 1994. Its research funds come from public- and private-sector organizations and government agencies within Taiwan. The TRI is one of Taiwan's three leading think tanks on financial and economic issues. It is closely associated with ex-president Lee Teng-hui, and many policies adopted during his administration were suggested by the TRI. Lee is now the TRI's honorary chairman, and since the end of his presidency he has used offices there. The TRI's president is China Development chairman Liu Tai-ying.

Research fields: Four research divisions study industrial economics; technology management; government, society, culture and cross-strait exchange; and strategic and international studies. Publications include the journals Taiwan Outlook, Strategic and International Studies, and Yuan ("Source"). The publication of Yuan is commissioned by the Power Development Foundation. It has a circulation of over 30,000 and an excellent reputation.

Website: www.tri.org.tw

National Policy Foundation

Background: Following the transfer of executive power to the DPP in 2000, the KMT reorganized the Lien Chen-tung Cultural and Educational Foundation into the National Policy Foundation, in order to prevent the loss of large numbers of former political appointees, properly perform its opposition role of monitoring the government, and maintain its ability to govern. The NPF's chairman is KMT party chairman Lien Chan; its vice chairman is current Legislative Yuan deputy speaker Chiang Pin-kung, who was also its founding president; its current president is Paul C.H. Chiu.

Research fields: Eight research divisions: government affairs, foreign and security policy, education and culture, constitution and law, economy and technology, sustainable development, monetary policy, and social security. All eight divisions are headed by leading members of the former KMT administration. To date the NPF has staged nearly 200 seminars, hosted visits from several dozen domestic and foreign research groups, and published almost 3000 commentaries on national policy. It also regularly mails its policy proposals to legislators of all parties, in the hope of influencing policy. It is the most active of Taiwan's recently established think tanks.

Web site: www.npf.org.tw

Institute for National Policy Research

Background: Set up as the National Policy Research Information Center in 1989 with funding from Evergreen Group chairman Chang Yung-fa. Renamed the National Policy Research Center in 1991 and reorganized as the INPR in 1998, to become Taiwan's first private multi-disciplinary think tank. Came to public attention when then-president Lee Teng-hui adopted many of its proposals in the 1989 and 1995 constitutional reforms. Lee's appointment of INPR members such as Huang Chu-wen, Su Chin-chiang and Huang Hui-chen to key government posts also made it the private think tank from which the largest number of scholars have gone into politics. In recent years, for financial reasons the institute has gradually moved toward a forum system.

Research fields: Currently six major fields: constitutional reform, society and culture, government finance, defense policy, cross-strait relations, and Asia-Pacific affairs. The INPR lays particular emphasis on international exchange activities and has frequently conducted international conferences with European and American think tanks. In the past it has published many sets of conference proceedings on constitutional reform.

Website: www.inpr.org.tw

Taiwan Institute of Economic Research

Background: Established in 1976 by Koo Chen-fu of Koo's Group. It initially conducted research mainly in industrial economics. In 1989 it was expanded, and extended its research activities to cover macroeconomic issues, but unlike the Chung-Hua Institution for Economic Research it is policy oriented. TIER acts as secretariat for the Ministry of Economic Affairs' Industrial Development Advisory Council, which provides a channel for private-sector participation in economic policymaking. TIER also serves as secretariat for various international organizations: the Chinese Taipei member committees of the Pacific Basin Economic Council (PBEC) and the Pacific Economic Cooperation Council (PECC); the APEC Business Advisory Council (ABAC); and the Chinese Taipei APEC Study Center (CTASC). TIER publications include International Economic Trends Weekly Report (to 2000), Monthly Reportcard on Main Economic Indicators, Taiwan Economic Research Monthly, Pacific Business Forum Bulletin, Energy Monthly, The Rural Sentiment (to 2000), annual surveys on economic trends, various books on business topics, and research reports.

Research fields: Six research divisions: domestic and overseas macroeconomics; manufacturing industry and SMEs; high-tech industry policy; energy economics and environmental economics; the petrochemical, transport and basic consumer goods sectors; economic forecasting and finance.

Website: www.tier.org.tw

Taiwan Thinktank

Background: Established December 2001, the Taiwan Thinktank describes itself as "a platform for dialogue between knowledge and policy" that breaks with the format of most think tanks, which are composed mainly of specialist academics. Its board and consultants include members of Taiwan's industrial, official and academic elite, including Taiwan Stock Exchange chairman Lin Jong-shong, Land Bank director Wea Chi-lin, NTU management college dean Ko Chen-en, and Premier Yu Shyi-kun, all of whom have close links with the Chen Shui-bian administration. The think tank operates by holding forums from time to time on major national issues, attended by its members and by leading people from various fields.

Research fields: The Taiwan Thinktank holds forums in eight areas: finance, high-tech industries, agriculture, government reform, societal development, mainland China, the Asia-Pacific region, and the WTO. Its first series of proposals, published in the China Times during January 2002, took the view that the government's policy on financial reform is largely correct, but also expressed the hope that the government can genuinely implement its goals of restoring the health of the banking sector, improving capital markets, and reforming financial policy, and that the Yu cabinet can carry forward the Chang cabinet's efforts to return order to Taiwan's financial system and revitalize the economy.

Website: www.taiwanese.com/~tt/Intro.html

Taiwan Advocates

(Eric Lin/tr. by Robert Taylor)

Background: Immediately after the December 2001 Legislative Yuan elections, in which the newly founded Taiwan Solidarity Union took an impressive 13 seats, the TSU set up Taiwan Advocates, led by former president Lee Teng-hui. It aims to bring together leading political and other figures who place Taiwan at the center of their thinking. It also claims to be a third force outside the conventional political structure that has established a partnership with the current administration, which shares similar ideals, and to be a "do tank" that gives equal emphasis to planning and to practice. To date it has not staged any major public activities.

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NCCU's Institute for International Relations is located in scenic Mucha.

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The Chung-Hua Institution for Economic Research was founded with government money, but has a very free intellectual environment.

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The Taiwan Research Institute is one of the island's three main brain trusts for economics and finance. Lee Teng-hui has had his office here since leaving the presidency. (photo by Pu Hua-chih)

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The National Policy Foundation was only recently founded, but is very active, holding a dozen or so conferences per week.

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The Institute for National Policy Research emphasizes cooperation with think tanks abroad, and frequently holds international conferences. (courtesy of the INPR)

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The Taiwan Institute of Economic Research handles secretariat duties for many internationally oriented organizations, and there are researchers from a variety of countries, making it very cosmopolitan.

(photo by Jimmy Lin)

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The opening cocktail party for Taiwan Advocates drew many influential figures. From right: Examination Yuan President Hsu Shui-teh, former premier Chang Chun-hsiung, KMT vice-chairman Vincent Siew, former president Lee Teng-hui, and former first lady Tseng Wen-hui. (courtesy of the Central News Agency)