Annotation 2: ECFA issues (Revised)

Source: http://onlinelibrary.wiley.com/doi/10.1111/j.1746-1049.1966.tb00493.x/pdf

The Developing Economies

Volume 4, Issue 4, Article first published online: 6 MAR 2007

“THE MODERN INDUSTRIES AND THE TRADITIONAL INDUSTRIES -at the Early Stage of the Japanese Economy”

Wrote by NAKAMURA TAKAFUSA

In recent years, Taiwanese government is struggling to change the agricultural nature of Taiwan into something that is more export-oriented and has more value reflecting on the market. Does our agricultural income not important enough to have an impact on the foundation of Taiwan economy? Here is a passage from the article which I found, “not only did Agriculture supply the food to support the nation but it supplied a large part of the labour force which was indispensable for the development of the economy.(Page 568)” When our government trying desperately to make Taiwan become an export-oriented country, we always forgot or intentionally ignore the foundation of our economy. How can we say that our government ”ignore” the agricultural industry in Taiwan? Look at the signing of ECFA (Economic Cooperation Framework Agreement) and the answer will reveal itself.

        My co-worker, Robert, mentioned a man who point out the problems that might come after signing ECFA, Professor Kenneth S. Lin of the department of economics at National Taiwan University, says that the signing of ECFA means the decrease of job opportunities and the increase of unemployment rate. These unemployed people are mostly farmers and traditional industry worker, these people’s social status are near the lower part of our society. People always view them with an economical judgment, conceiving them as a not-so-profitable group in our economic system, agriculture had always been thought as an industry that is doomed to be eliminated. But in the article, it mentioned that “it must be taken into account that many of these agricultural people had side-jobs in manufacturing and commerce.” Although this article is writing about Japan’s economic development, it can also be applied on Taiwan’s working class. A survey(*1) done by the Institute of Sociology, Academia Sinica, shows that compared to Professional farmers, Part-time farmers had now become the major group of Taiwan’s agriculture system. And so this points out an important concept, farmers and workers, they might have other side-jobs in their life, one cannot define their economic position only as farmer and worker, we have to take account of their side job’s economic value and contribution. 

from “The Survey of Taiwan’s social Transition” 

An image of the proportion of Taiwanese farmers' career decision   

        In my last annotation I mentioned the raise of unemployment will cause our social security expense become too high for our country to afford, and as Professor Lin said, signing of ECFA means the decrease of job opportunities and the increase of unemployment rate. These unemployed people were mostly farmer and workers, when our country is already having troubles with these people’s social security expenses, Taiwan also has to deal with the problem of losing a large part of the labour force. These two major cracks in Taiwan economy are what we are going to face when signing ECFA, since our government didn’t even consider these problems, how can we trust them to decide the next decision for Taiwan’s future economy?

Note 1: “The Survey of Taiwan’s social Transition” by the Institute of Sociology, Academia Sinica http://www.ios.sinica.edu.tw/TSCpedia/index.php/%E7%84%A1%E7%B1%B3%E6%A8%82%EF%BC%8C%E6%A8%82%E5%A6%82%E4%BD%95%3F%E8%BE%B2%E6%B0%91%E8%88%87%E8%BE%B2%E6%A5%AD%E7%9A%84%E8%95%AD%E7%91%9F