September 1, 1998 marks the first anni- versary of Premier Vincent Siew's assuming leadership of the Executive Yuan and the inception of his "action cabinet." One year ago, Siew took the reins of power after a new constitutional system was put in place. At the time, a number of major events had yet to transpire, and the country's national competitiveness, vigorously ascendant for many years, was about to enter a downward trajectory. Soon, the financial crisis in Southeast Asia, the devaluation of the New Taiwan dollar and the resulting challenge to the ROC's "Go South" policy all reared their heads. And with the many climatic anomalies brought on by El Nino, the number of natural and human calamities seemed to be multiplying. From the crash of a China Airlines passenger jet to the rise of the enterovirus, saddening news stories filled the headlines. And several times the lineup of the cabinet was reshuffled as well, forcing ministers to start their work all over again.

Internally, the tasks awaiting the Siew cabinet have included downsizing the provincial government and amending obsolete laws and regulations, in order to raise the entire nation's competitiveness. Externally, a goal that appeared even more pressing was returning to the negotiating table with mainland China, to mutually construct a peaceful and rational future for cross-strait relations, and to gain greater international space for Taiwan. In other words, the challenge facing the "action cabinet" has been nothing other than the enormous project of thoroughly upgrading the structure of the ROC, so that it can become a modern, advanced nation.

At this time when we entertain such great expectations for the future, with various kinds of reforms in the making, why not open-mindedly observe for a moment, exactly how the "action cabinet" has confronted its crises? What changes has it introduced? What is the current status of the cabinet's powers to mobilize, its mental faculties, stamina and morale, as it faces the challenges of a new century? As the Siew cabinet reaches its first birthday, we've prepared a "checkup" on its accomplishments and the response from public opinion during these last twelve months.

Basic data

After constitutional amendments were set in place, Vincent Siew, the ROC's first premier to be directly appointed by the president without confirmation by the Legislative Yuan, officially began his duties on September 1 of last year.

Taking the slogan "elevate the people's will-action first," the "action cabinet" led by Premier Siew adopted an approach focused on pragmatism and communication, taking office amidst a turbulent atmosphere of crime and crisis. The cabinet's physical condition can be described as good, but it is threatened by many different external pathogens.

Examination results

I. Circulatory system

In the past year, Taiwan performed stably in the midst of Asia's financial collapse. Last year's rate of economic growth was 6.7%, the highest for the past five years. This year no more than 5.5% is forecast, but this is nonetheless a commendable performance in view of the world economy's murky condition. As for the future of the domestic economy, Vincent Siew, who formerly served as Minister of Economic Affairs and chairman of the Council for Economic Planning and Development, believes that in the past private sector investment has been very good, and in the future the government should also actively involve itself in economic investment.

To address the nation's drop-off in exports, in August the cabinet promulgated its "Plan to Expand Internal Demand." In the coming two years, public spending will increase by NT$200 billion, in order to improve the condition of the economy. Meanwhile, the Ministry of Transportation and the Taiwan High-Speed Rail Consortium had been encountering numerous snags in the process of reaching an agreement, but after Premier Siew urged all parties concerned to do their best to cooperate, the "Contract for Construction and Operation" was quickly completed and signed. Siew stresses that money cannot simply roll around in the stock market; that is why the government has vigorously promoted the use of the Build Operate Transfer (BOT) model, increasing the opportunities for public-sector investment.

This year the Ministry of Finance began implementing the "two-in-one tax." Amending the tax laws is their principal task for this year. At the same time, to ensure the stability of the stock market and curb the activity of financial speculators, the Central Bank announced on August 15 the promulgation of standards for individual foreign-currency banking accounts, preventing speculators from using individual accounts to manipulate the exchange rate of the NT dollar. They also requested all foreign exchange banks to notify them promptly of any large-scale foreign currency transactions. The Central Bank will provide tax authorities with a list of account-holders who tend to make large transactions. It also plans to control the supply of NT dollars to organizations that manipulate the exchange rate. This should serve to check large-scale currency sell-outs caused by international speculators such as George Soros.

II. Respiratory rate

Cross-strait relations appear to be perilous, but this critical condition is not necessarily intensifying. Just like the rhythmic inhalation and exhalation of breathing, relations oscillate back and forth-equilibrium should be maintained.

When Vincent Siew took office, he expressed his desire to "greet the spring," offering the olive branch of engagement with mainland China. Nevertheless, springtime came and went without Taiwan and the PRC being able to approach the negotiating table. Currently, discussions are under way to arrange another meeting between Koo Chen-fu, head of Taipei's SEF, and Wang Daohan, head of Beijing's ARATS. This may occur as early as September or October. In the future, the cabinet's respiratory rate may stabilize.

Nevertheless, mainland China's consistent refusal to treat Taiwan as an equal remains a difficult impediment.

III. White blood cell count

The PRC refuses to desist from creating pressure for Taiwan in the international arena. Because the "action cabinet" is struggling to break out of this enclosure, its white cell count is a little on the high side, constituting a dangerous medical condition.

During his state visit to mainland China in late June, US president Clinton verbalized in an informal setting his agreement to the "Three No's" principle. And with PRC president Jiang Zemin set to visit Japan in September, Taiwan is feeling significant pressure as a result of the recent vogue for the "Three No's" in the international community. As efforts are made to restart cross-strait dialogue, how is the Siew cabinet to respond to this considerable challenge?

In order to create space and support in international relations, Vincent Siew has visited Southeast Asia numerous times since accepting the post of premier. During the financial meltdown, it became evident that in light of Taiwan's close links to the financial system of Southeast Asia, we must at all times keep a friendly hand extended in that direction.

When civil unrest broke out in Indonesia in the wake of the financial crisis, and a spate of anti-Chinese violence erupted, the Siew cabinet immediately called Indonesia's diplomatic representative to express the ROC's stance of extreme concern.

IV. The liver

The function of the liver is to eliminate toxins; if improperly regulated, the body is easily fatigued. Starting on January 1 of this year, the "action cabinet" introduced two-day weekends every other week. The citizens of Taiwan received a generous dose of extra recreational time, yielding a considerable increase in quality of life.

V. Red blood cell count

Education is the nutritional source of the nation's energy; one might call it the country's red blood cells. In direct response to the calls of educational reform groups, the "action cabinet" has adopted the goal of smaller classes and smaller schools. The Ministry of Education is also vigorously endorsing the concept of "life-long education" and the construction of channels for its implementation. The goals of these programs are to increase Taiwanese people's knowledge and quality of life, and ultimately to provide motivation and nutritional resources to increase the strength of the nation.

Educational reform isn't a matter of mere slogans: Smaller classes and schools, bilingual education, and varied channels for educational advancement are all long-term projects that are not easily achieved. Vincent Siew particularly emphasizes that educational reform is a firm policy of the Executive Yuan. It has already approved the "Educational Reform Stimulus Package" drafted by the Ministry of Education. Starting from 1999, more than NT$150 billion will be spent over a five-year period to advance 12 educational reform projects, including "promoting education for the entire citizenry" and "encouraging diversification and increased quality in vocational education."

VI. The kidneys

The principal function of the kidneys is to excrete toxins. Faced with an increase in major crime and a decline in law and order, the "action cabinet" has made exceptional efforts.

When the Siew cabinet was first formed, three major crime cases were in the news. Of these, the Pai Hsiao-yen kidnapping and murder has since been solved, but no progress is apparent in the other two, and reports of criminality continue to be frequent. The recent revelation of cheating on tests at the Central Police University (CPU) was also a serious blow to police morale, and within the Bureau of Investigation there surfaced a controversy over the proper focus of investigations. Putting in order the criminal and political investigation system became the great challenge of the Siew cabinet.

Huang Fu-yuan, director of CPU's Graduate School of Crime Prevention and Corrections, stated that in fact, efforts to improve law and order will not show results in the short space of a year. Nonetheless, the fact that the overall crime rate has fallen by 10%, and violent crime by 17.6%, suggests that the kidneys' excretory capacity is increasingly robust.

VII. Central nervous system

Restructuring the government is the most vital project of the Siew cabinet. Yet the public remains unclear as to the method, details and goals of the restructuring. The downsizing of the provincial government has also been frequently decried by many different parties, making it even more difficult for the public to appraise the impacts of this policy. The nervous system seems to need to strengthen its reflexes and coordination.

Premier Siew hopes that by December 20, the third reading of the bills for both the "Basic Law of Central Government Organization" and the "General Law for Central Government Personnel" can be completed. As concerns the opposition of the provincial government to its own downsizing, Siew believes that full communication is of foremost importance, but the overall principle will not change. He stresses that a four-tier governmental structure was a policy set in place 40 years ago; today, with every country democratizing and competing in terms of efficiency, making the ROC government simpler and more flexible is essential. What the people wants is an effective government. Governmental restructuring is meant to raise the nation's competitiveness. Currently, the internal details of the plan have yet to be finalized and it is thus impossible to explicate the details to the public, but after the proposals are formalized, the plan will be communicated on a regular basis, so that the public may fully understand and take part in the restructuring process.

VIII. Conclusions:

The country's important tasks are numerous and complicated. If we are to preserve the health of the body, these are not things that can be achieved right away. Currently, the circulatory system is quite strong, and it provides the "action cabinet" with a high degree of stamina to address the heavy chore of reform.

Doctor's advice

Public opinion is the mainstay of the citizenry, and it serves as something of a check-up for the cabinet. Around the Siew cabinet's one-year mark, almost all expressions of public opinion seem inevitably to call attention to the long series of untoward events and the increasing number of challenges faced by the government. But they also affirm Siew's executive style-taking problems in stride, communicating frequently, meeting challenges with a positive attitude.

As for the many pressing issues lying ahead, from restructuring the government to cross-strait negotiations to the continuing economic turmoil, the "action cabinet" must remain cautious about the country's health. The internal organs of each department must maintain close communication with their source of vitality, the nation's citizenry, and pay attention to all warning signals coming from outside. Being prepared for conflict is the only way to maintain a healthy immune system and generate new life.

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Despite the many challenges which face him, ROC Premier Vincent Siew brims with confidence. (photo by Lin Tao-ming)

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The high-speed railroad BOT plan is a major construction project advocated by Premier Siew. After construction is completed, it will go one step further to bridging the gap between northern and southern Taiwan. (courtesy of the Taiwan High-Speed Rail Consortium)

The high-speed railroad BOT plan is a major construction project advocated by Premier Siew. After construction is completed, it will go one step further to bridging the gap between northern and southern Taiwan. （courtesy of the Taiwan High-Speed Rail Consortium）