The statement was apparently intended to remind environmental agencies that if policies were too tough, they would compel Taiwanese manufacturers to relocate their factories abroad. It could also be interpreted as a reminder to manufacturers and entrepreneurs to stay home, since the government had adopted an agenda combining sustainable development and environmental protection, and that these dual goals should be achievable through sound implementation.
Over past decades, many Taiwanese manufacturers have relocated their plants to Southeast Asia, China and beyond, not simply due to cheaper labor, land and resource costs, but also due to stricter environmental protection demands at home.
Their moving overseas has caused immense losses to Taiwan. First, it has resulted in lost government revenues, tax income in particular. This is because Taiwan's highly industrialized economy and society are based on middle-class incomes. Second, outflow of manufacturing resulted in an increase in Taiwan's unemployment rate, which was 3.83 percent in April.
Moreover, as a considerable number of middle-class technocrats and managers moved overseas, Taiwan has suffered shortages of skilled manpower, modern technology and management. Third, relocation overseas led to industrial hollowing out at home, with associated economic and social consequences. Finally, the growing strength of environmentalist groups has increasingly influenced the election process and enactment of environment-related legislation.
In order to resolve the clash between sustainable development and environmental protection, and to create an investment-friendly climate at home, the government has sponsored a series of seminars from which proposals were adopted. Many of these were based on successful experiences in other developed countries or were in line with the policy declaration of the United Nations Commission on Sustainable Development and the Kyoto Protocol.
Very few nations to date can claim success in balancing sustainable development and environmental protection, and Taiwan is not exempt. Demonstrations against new nuclear power and chemical plants are indications of the environmentalist voice getting louder in Taiwan.
The government has wisely acted as a facilitator, rather than taking sides. As Taiwan's democracy matures, it is expected that political parties and the Legislature will be better able to meet the interests of both sides for the sake of broader national interests.
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