The Republic of China is facing the twin pressures of worldwide recession and a protectionist trend on world markets which have resulted in a fall in exports and investments in industry. Economic problems have become the focus of attention, both within Taiwan and among overseas Chinese and foreigners who are concerned over the nation's progress. Sinorama, therefore, has undertaken a series of interviews with top government officials in the economic sector to collect their views on how they intend to lead the country through this difficult period.

Soon after he became Minister of Economic Affairs, Y. T. Chao, completely reorganized the Ministry, raising hopes that he would be able to use his business management techniques to rejuvenate the economy. He outlined his policy on choosing staff by saying: "I not only look for ability and virtue, but also for people who are willing to take risks." Other qualities he mentioned were an outgoing personality, willingness to take responsibility, a high level of education, good command of the spoken language, youth, management skills and the ability to delegate authority, as well as absolute devotion to promoting the national interest.

Chao feels comfortable in delegating responsibility among his own staff, at least partly because they all share his ideas on planning and implementation of economic policies. Among important industrial and commercial policy makers also interviewed in this article are Political Vice Minister of Economic Affairs, Wang Chao-ming, Administrative Vice Minister Wu Mei-tsun, Director General of the Board of Foreign Trade, V. C. Siew, Director of the Industrial Development Bureau, Hsu Kuo-an, and assistant IDB directors, Lin Mao-chung and Wu Hui-jan.

With his tall and lean physique and slow and deliberate speech, Wang Chao-ming treats people with warmth and sincerity. But once he has made up his mind, he is hard to sway. To charges that he is obstinate, Wang replies: "If anyone comes up with better ideas and proves me wrong, I will gladly change."

Because of his experience in the Ministry of Finance, Wang is able to look at things from the monetary as well as the fiscal point of view. Although the two viewpoints often coincide, in general, the financiers seek stability, while the economists seek growth.

After analyzing current economic problems, Wang says: "As the economy develops and society progresses to a certain stage, wages must follow. Currently, technological and capital intensive industries must mechanize and increase production capacity or else produce more expensive, higher quality goods to match the rise in wages. At present, Taiwan is in a period of economic transition. On the one hand we can no longer compete with low wages, while on the other, technological and capital intensive industry has not yet been fully developed. The domestic market is small, so we are dependent on exports. Therefore, as we improve our industry we will at the same time increase trade."

Deputy Minister Wu Mei-tsun is an old friend of Minister Chao, since the two went to Wuhan University together. Chao called Wu back from his post in the United States at the Economic Investment Affairs Bureau to serve as an industrial advisor.

Some people think it strange that industry must buy machinery and train personnel in order to grow, while during the current recession, many industrialists are having trouble just surviving. Why does the Minister want producers to bear this great burden?

He explained: "Our current actions are designed to prepare for the economic recovery. If our old machinery is producing lower quality goods, it will be too late to change when the economy picks up. We have a good opportunity to use the current slowdown to transform our industrial base."

BOFT director, V. C. Siew, is only 43, the youngest department head in the Economic Affairs Ministry. He likes to hire young people because he says they are more adventurous and vigorous.

When he became director, he set forth several goals. Internally he wanted to increase his department's work capacity and raise productivity, while externally he wanted to improve services. Over the past four months he has forged ahead toward these goals and also set new ones. Among them are strengthening communications between departments, developing subordinates decision-making abilities, reducing various registration times from three days to one, having counter personnel work during the lunch hour, and setting up a "service mail box" to act as a channel of communication with the industrial world.

For IDB director Hsu Kuo-an, the biggest problem is that as the economy has grown, so have the responsibilities and workload of his bureau. Since the bureaucracy has been rather inflexible, manpower has increased but speed has not. Hsu's first objective was therefore to simplify working procedures and raise management efficiency, so as to create the time and energy needed to plan and study.

Assistant director, Lin Mao-chung, considers that industrial engineering is a type of management using mathematics, accounting, and the social sciences to come up with ways to use manpower, materials, and equipment in the most efficient manner to save money and increase production. Industrial engineering and business management are similar, but besides needing to study management, an engineer must also have an understanding of physics, mechanics and other industrial skills.

The other assistant director in the IDB, Wu Hui-jan who has a doctorate in agricultural economics, recently worked out an economic forecasting system using five lights: Double red, red, yellow, green, and blue to represent the state of the economy. While he was developing his system, some said it was a waste of time. But once it was completed and its effectiveness was proven, they changed their minds. Wu is currently studying strategic industry development and traditional industrial growth policies, and says he should have some results by the end of the month.

These advisors to the Economic Affairs Ministry were all chosen at the same time, and they all want to contribute their knowledge to help guide the nation's economic progress. Perhaps their policies and methods are not always perfect, but they do address the problems at hand.

[Picture Caption]

Left: The Republic of China is pushing ahead with plans to develop the steel industry. Right: Wang Chao-ming, political vice minister of economic affairs, says: the aim is to upgrade our industries as well as trade."

1. Wu Mei-tsun administrative vice minister of economic affairs, has long experience in handling foreign investment. 2. V. C. Siew, director general of the Board of Foreign Trade, is considered a specialist in developing foreign markets. 3. Industries in the ROC are changing to a technology and capital intensive base.

1. Hsu Kuo-an, director of the Industrial Development Bureau, supports division of responsibility. 2. Lin Mao-chung, IDB deputy director, is the youngest top administrator in the Ministry of Economic Affairs. 3. The information industry is one of the key industries being encouraged by the government.

Top: Apart from being able administrators, upgrading industry also depends on the efforts of the workers. Bottom: Wu Hui-jan, IDB deputy director, is a specialist in economic planning and forecasting economic developments.

Wang Chao-ming, political vice minister of economic affairs, says: the aim is to upgrade our industries as well as trade.".

Wu Mei-tsun administrative vice minister of economic affairs, has long experience in handling foreign investment.

V. C. Siew, director general of the Board of Foreign Trade, is considered a specialist in developing foreign markets.

Industries in the ROC are changing to a technology and capital intensive base.

Hsu Kuo-an, director of the Industrial Development Bureau, supports division of responsibility.

Lin Mao-chung, IDB deputy director, is the youngest top administrator in the Ministry of Economic Affairs.

The information industry is one of the key industries being encouraged by the government.

Apart from being able administrators, upgrading industry also depends on the efforts of the workers.

Wu Hui-jan, IDB deputy director, is a specialist in economic planning and forecasting economic developments.