The decision drew mixed public opinion. Most people applauded Minister Kuo's courage for making a tough decision about the overheated market and for her position in upholding sound principles of taxation. But the decision was vehemently opposed by stock speculators, and many of them translated their anger into action by staging large-scale street demonstrations.
After the furor subsided somewhat, critics raised another issue related to Minister Kuo's announcement. They pointed out that the very process of making the decision was flawed because only a few officials had participated in the deliberations. Moreover, no concerted effort was made to cultivate advance public support for the action.
Similar questions were raised concerning another case with high public visibility. Last Mayan official ROC delegation was sent to the 22nd Annual Conference of the Asian Development Bank (ADB) held in Peking [see FCR, July 1989]. While the move was praised by many local and foreign observers as an indication of the ROC government's more flexible and pragmatic mainland policy, certain aspects of the trip caused widespread consternation.
For instance, when the ROC delegation members stood up with other delegations during the opening ceremony to greet a Chinese Communist leader, people began to wonder who had participated in the decision-making process about attending the event in the first place, and if these decision-makers had thought through the possible consequences of their actions.
The key question underlying both these cases centered on the issue of whether or not the public should be informed and be able to offer opinions in advance concerning major government policies. The criticisms indicate that a major change in public opinion is in the making, one where ordinary citizens are beginning to demand an "opening up of the black box" of the government's decision-making process. People are not only demanding the right to know, but also the right to participate.
Taiwan's emerging pluralistic society has been characterized by Dr. Michael Hsin-huang Hsiao (蕭新惶) as a new kind of "participatory political culture" where the old lines of hierarchical superiority and subordination between government and people are being redefined. Hsiao, a sociologist and research fellow at Academia Sinica, has also characterized Taiwan as a "demanding civil society" because of the rise of special interest groups, another new phenomenon in Taiwan.
Early last year during a conference on "Democratization in the Republic of China" [see FCR, March 1989], Hsiao said: "Taiwan's civil society is no longer a passive receiver of the domination of the state. It has been mobilized through the experience and learning process provided by the social movements of the 1980s. Through social movements, the civil society as a whole has learned how to demand and make claims on the state. "
The evaluation was reinforced a few months later by Yeh Wan-an, Vice Chairman of the Council for Economic Planning and Development. In another conference setting, he said: "Attitudes toward the government have undergone significant changes. The general public now demands that their voices be heard, their opinions respected, and their policy ideas adopted— or at least taken into consideration." Hsiao and Yeh both imply that government planners must reevaluate their traditional ways of deciding policy.
"The times are past when a minister pondered for a few days and then formulated a policy, or when a staff member could do the administrative planning alone," says Dr. Ma Kai (馬凱), a research fellow at the Chung-Hua Institution for Economic Research.
Ma refers to Minister Kuo's decision concerning taxation of stock market transactions: "From some follow-up reports on the decision of that policy, we learn that it was made by Minister Kuo [who has a Ph.D. in economics from Kobe University in Japan] and a few members of her staff—even the two vice ministers were not consulted. On policies as important and influential as this one, the decision-making process should be carefully considered. "
Ma, who received his Ph.D. from the University of Iowa, also rejects the notion that being an expert in a certain field means that there is less necessity for consultation before making a decision. "I am really worried about experts becoming political appointees. Unlike administrative officials, political appointees should be persons with broad knowledge and not be specialists in a certain subject. That way they can have a more comprehensive understanding of the issues, yet still realize the limits on their talents and abilities. "
"Moreover," Ma argues, "ordinary political appointees may consult with several other specialists for a balanced perception of various viewpoints, but specialist appointees must be careful not to lose the balance point by insisting on their own views. Otherwise, things could go to extremes."
Nevertheless, government officials must make decisions on sensitive issues, such as those concerning national security, and secrecy is important. If the public were informed in advance, it might reduce the effectiveness of the policy initiative. Charles Shu-chi King (金樹基), Political Vice Minister of Foreign Affairs also holds this opinion.
"Some foreign policies concerning national security are classified to ensure the rights and interests of the state," he says. "The government has to keep such matters confidential so that related policies can be soundly formulated." King mentions as examples the government policies concerning the ROC's participation in the ADB meeting in Peking last April and the decisions on formal relations with Grenada, Liberia, and Belize last year.
Given these complexities of formulating policy, how are policy research and consultation actually conducted in the ROC government administration, and is the process changing? What is the structure of the government's in-house research organs, and how do these interact with private sector think tanks and the public at large?
RDEC Director Lin Ke-Chang—"We are glad to see an increase in the number of policy and issue research institutions."
"On the central government level, the Research, Development, and Evaluation Commission (RDEC) is in charge of administrative research projects, the Council for Economic Planning and Development (CEPD) administers economic and financial research projects, and the National Science Council (NSC) handles large-scale integrated research projects relating to sci-tech research," says Lin Ke-chang (林克昌), director of the RDEC's Overall Planning Department. These three are all ministry-level agencies under the Executive Yuan (Cabinet).
The RDEC, established in 1969, is responsible for five main areas: policy research, overall planning, control and evaluation of policy implementation, information systems management, and government publications. It plays the multiple role of researcher, pollster, planner, inspector, evaluator, and systems analyst. And it aims to promote innovation in government administration, enhance efficiency of public services, and generally speed up modernization of the nation.
According to Director Lin, each year the RDEC reviews social, political, and economic developments in Taiwan, mainland China, and the rest of the world, then it selects a program of 15 to 20 policy-oriented research projects. These generally fall under three categories: general administration; political, social, and educational affairs; and financial and economic issues. The research is either contracted to outside specialists, carried out by the RDEC in cooperation with academic institutions, or undertaken by the RDEC's own research staff.
"We have a carefully-planned work procedure for our research projects," Lin explains. "The RDEC staff does the initial background research, then experts and scholars in related fields, relevant government agencies, and representatives from the public are invited to participate in a seminar in order to exchange views on the best research direction, focus, and method of approach."
Lin's department selects suitable personnel to conduct the research and asks them to compile and submit detailed research plans for a screening process. When approved, often after revisions, a contract is signed and research can begin. Similar detailed checking and coordination continues until the final report is submitted to the RDEC for a final review process. The results are then sent to the relevant government agencies for their reference and action.
"These procedures aim at ensuring high-quality research results," Lin says. He adds that of the 232 research projects completed by the RDEC from FY1976 to FY1988, the findings of 53 (roughly 23 percent) were adopted for implementation by the Premier, 72 (or 31 percent) were referred to government agencies for attention in policy formulation, 77 (33 percent) were referred to agencies for attention in improving government services or programs, and the other 30 (13 percent) were referred back to the RDEC for reference on related affairs. Those adopted by the Premier included research projects on population planning, the election system, and automobile liability insurance.
Apart from its own research programs, the RDEC assists other agencies in selecting priority research projects at the beginning of each fiscal year. The projects cover a wide spectrum of issues including public administration, policy planning, public opinion, and budget and finance. According to Lin, from FY1978 to FY1988, over 10,000 such projects were completed and the findings of more than 3,000 were adopted and implemented by the relevant government agencies.
Research projects contracted by CEPD and the NSC follow similar procedures in their specific fields of interest. The functions of CEPD are to assist the financial and economic sectors in strengthening the domestic economy and to study the impact of global economic trends on domestic economic structure. The NSC concentrates its efforts on scientific and technological development.
The annual research budget for the RDEC is currently about US$1 million. According to the NSC, the budget for R&D spending on science and technology (excluding national defense) was close to US$1.5 billion in 1988. Figures on total government R&D expenditures in economic research are not available, but most of CEPD's budget—US$12.5 million for FY1990—is spent in this area.
The RDEC's research projects have so far been contracted directly to individual specialists rather than to institutions because the specialties of researchers are considered the most important selection criterion. Director Lin expects even more contacts with local research institutions in the future.
"We are glad to see an increase in the number of policy and issue research institutions, both public and private, and we look forward to closer cooperative relationships between them and government agencies," Lin says.
An increasing number of such research institutions have recently been set up in Taiwan. Like their think tank counterparts abroad, they are formed to offer expert analysis and advice on a wide range of government policies. The most active institutions include the Institute of International Relations (IIR) at National Chengchi University, the semi-official Chung-Hua Institution for Economic Research, the Taiwan Institute of Economic Research, the 21st Century Foundation, and the Institute for National Policy Research [see accompanying articles].
Based on his own experiences as a contracted researcher, Dr. Ma Kai says that the government has yet to utilize its resources effectively. "Take Chung-Hua as an example," he says. "It was established with the help of government funding as a non-profit private research organ. Its goal was to find ways to reduce administrative problems in government institutions in such areas as excessive red tape and inappropriate salary scales. But in fact, it started to undertake policy research for the government's reference."
Ma says this self-directed shift in function altered the nature of the institution where he works as a research fellow, and the change has unexpectedly worked to its disadvantage: "Chung-Hua gradually moved so far away from the government that government agencies now no longer know how to use its resources-and it doesn't know how to contribute to the government."
According to Ma, a business relationship has evolved between Chung Hua and the government. "Ironically, we have now become critics of government policies rather than participants in the policymaking process," he says. "This is a loss to the government, because resources can be fully exercised only when they are put in the right place."
Apparently the current situation has also had some impact on the attitudes of researchers. "There is some justification for saying that we researchers in Chung-Hua have become rather passive and have fewer ambitions. We are not short of money, and therefore don't feel as much pressure to produce. In comparison, the Taiwan Institute of Economic Research plays a much more relevant role than we do. It was founded as a private research institute, and after the donations to it were suspended, it has been forced to look actively for research work in order to survive."
As for the IIR at National Chengchi University, Ma argues that it cannot be considered a research organ. "I would call it an academic department of foreign affairs' sponsored by the government," he says. Ma adds that the government so far has no real think tank for policy consultation and research, and it has not effectively made use of other private think tanks.
Dr. Liu Tai-ying, Director of the Taiwan Institute of Economic Research, agrees with Ma's view. "Think tanks can be of great help to the government," he says, "Although the government does have quite a few talented high-ranking officials, they are always busy attending meetings which seldom come up with concrete policies because of so many different opinions from each agency. I believe that government agencies should entrust think tanks with more policy research and planning work, while public officials should pay more attention to putting these research results into action. "
Liu adds that the government lacks human resources and time to do research work. "My institution, for example, is one of the think tanks that provides such services. After we do the research, the government can then discuss the results and decide whether they should be adopted as policy or not."
Many government officials already realize the value of think tanks. Based on his years of experience in consulting with research institutions, Wang Chien-shien, Administrative Vice Minister of the Ministry of Economic Affairs, says: "The government is always very prudent in the policymaking process in order to formulate complete and appropriate economic policies. And we have had frequent consultation with local experts and entrepreneurs for their opinions. Because of its many qualified specialists, Chung-Hua and the Taiwan Institute of Economic Research have frequently done special research projects on domestic and international economic issues for the government's reference."
The government has also formed a number of in-house research arms. For example, the Ministry of Foreign Affairs has the Research and Planning Board, which is responsible for foreign policy re search. Political Vice Minister King Shu-chi serves as chairman of the board [see accompanying interview]: "The Research and Planning Board frequently consults with experts and scholars in local academic research institutions and think tanks," King says, "because they can play a very active role in the formulation of foreign policy."
The Environmental Protection Ad ministration (EPA) also cooperates with local research institutions. Director Chen Yeong-ron (陳永仁) of the Overall Planning Department says that ever since the EP A was upgraded to a ministry-level organization in August 1987, it has placed greater emphasis on various environment assessment and policy-planning research projects.
This has been reflected in the EPA's allocation of resources. The budget for research increased from US$220,000 in FY1983 to US$11 million in FY1989, and close to 200 research projects were contracted to different institutions and researchers in FY1989. In addition to universities and research institutes, the EPA has given a few projects to private environmental protection organizations such as New Environment Foundation and John Tung's Foundation. (The EPA has to submit its large-scale research projects to the National Science Council for approval before a new fiscal year starts.)
"It is a healthy phenomenon that local civic groups are willing to assist and even supervise government administration in environmental protection is sues," Chen says. "We always invite them to take part in related conferences and meetings."
But what if the contracted research projects are of poor quality? To deal with this problem, the EPA has already set an example by designing a program to evaluate the research reports conducted by its contracted researchers. "Each year the EPA entrusts other research institutions with almost 200 research projects," Chen explains. "To supervise them properly and ensure their quality, we have invited other specialists to screen the research reports completed over the whole fiscal year. The assessments focus on research methods, structure, conclusions, suggestions, and even the language used in the research reports. The best ones receive awards from the EPA, while those who fall below standards will not receive research grants for a minimum of two years."
Among the research projects contracted in FY1988 and FY1989, Chen says that 150 are already completed, and 95 of them have been either partially or completely adopted for policy implementation. He says that almost 40 percent of the studies submitted are too long-range in nature, making it difficult to act upon them.
Chen emphasizes the importance of putting the right spin on reports to encourage administrators to implement them. "We are an administrative agency and not a academic research organ," he says. "What we need are concrete plans for immediate action so that people can benefit from government administration as soon as possible. Of course there should also be some long-range plans, but these should account for only 10 to 15 percent of the total."
The EPA is the first government agency to award or penalize contracted researchers for the quality of their work, and its decision may set a trend that will help all government agencies acquire higher quality research support. "We believe the contracted persons or institutions will now pay more attention to refining their projects," Chen says.
"No dumping!" The ROC's environment is finally receiving more R&D attention.
Other than getting help from think tanks, Dr. Ma Kai suggests that every government agency should establish its own specialized brain trust in order to deal with short-term or emergency cases. "They can conduct small-scale, short term studies and also keep in touch with outside resources for policy research," he says. "Since they are familiar with government priorities, the heads of the agencies can consult directly with them in the case of an emergency."
Ma's view is echoed by Director Lin of the RDEC: "This is what the government has been trying to do over the past few years. Many R&D departments have been set up inside the agencies. They have found the personnel, set up planning, and allocated budgets for these re search arms. And the government has encouraged these developments further by giving awards to outstanding research work conducted by government employees."
Although some officials complain that these researchers are often occupied with administrative affairs and have insufficient time to conduct real research work, R&D in government administration is gaining momentum.
In addition to the executive agencies of government, the Legislative Yuan in January 1989 set up its own research department, the Legislative Consultation Center. It conducts studies, analyses, and appraisals of bills, and conducts re search to answer inquires from individual legislators and legislative committees. It also provides translation services.
Dr. Yu Yuh-chao—The establishment of the Legislative Consultation Center "marks the beginning of a new page in the history of ROC legislation."
"The Consultation Center has three sections—bills, budgets, and translations—and 17 legislative consultants. Its establishment marks the beginning of new page in the history of ROC legislation," says Dr. Yu Yuh-chao (余玉照), coordinator of the Center.
So far, the Center has produced a dozen research reports on legislative bills, including reports on environmental protection, the FY1990 budget for public enterprises, the FY1990 general budget of the central government, the revised Banking Law, and the law on welfare of senior citizens.
"We are extremely careful in the process of study and appraisal of bills," Yu says. "Only after we have concrete information will we make suggestions or revisions to the original bills, because we know very well that our evaluation results are important. In this way, we aim to upgrade the quality of legislative bills. "
The Center's work is backed by the Legislative Yuan's well-stocked Library & Information Service, which provides reference services and computer-based information services. "The Yuan's Universal Databases Access Service provides information from more than 250 data-bases in a broad scope of disciplines, which helps us serve legislative inquiries very effectively," Yu says.
But there is still a manpower problem, especially in light of the number and complexity of bills that need to be considered. "We are expecting an expansion in the composition of the Center in the near future," Yu adds. "At that time, we will be able to provide research support in much greater depth."
The cost of new housing is causing heated public debate.
In addition to views and suggestions from experts, public opinion is also an important reference for government policy and administration. As a result, public opinion polls—a relatively new phenomenon in Taiwan—have gained greater importance. The RDEC in particular has been a leader in utilizing this resource.
According to Director Lin, the RDEC has been conducting large-scale opinion surveys and analyses of views carried by the mass media since 1978. Seven of these large-scale surveys have been done so far, with topics covering the public's evaluation of government performance, the attitudes of civil servants, voting behavior, and views on social change. In 1988, the RDEC established a telephone survey system to collect regular samples of public opinion on current issues.
"As Taiwan's society gets more pluralistic and sophisticated in the wake of political liberalization, the ROC government more and more requires a body of well-researched policy options," Lin says. "Because the government must cope with mounting problems such as crime, labor disputes, social welfare, and environmental pollution, we must place more emphasis on better-quality research projects that yield a higher rate of implementation by government offices."
The RDEC will have considerable help in analyzing these issues. As domestic and international issues increase in complexity, there is every indication that government policymakers will turn more frequently to both public and private think tanks for the sophisticated research and recommendations required to make effective policy decisions.