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Politics & National Vision

  • Stable Politics, Emphasis on Democracy, Laws, and Freedom
  • A prosperous, harmonious and sustainable country.

Taiwan is a democratic country ruled by the laws. It receives high scores on political rights and civil liberties in the survey conducted by the Freedom House. It is rated as a free country. Moreover, Taiwan, which differs from Hong Kong and Macao, is free from "one country two systems", where foreign investment in Taiwan is much more secure.

The government has been advocating the new cross-strait policy. It is clear that the systematic cross-strait negotiations have stepped into a normal phase. Various interactive mechanisms for mutual benefits should be further established, and the exchanges on economic, social, and cultural activities should also be strengthened. In June 29, 2010, Taiwan and mainland China signed the Economic Cooperation Framework Agreement ( ECFA ) to strengthen the integrity of trade and economy and to effectively reduce the political risks between Taiwan and mainland China, and to clear out foreign investors’ concerns about the uncertainty of the cross-strait relationship.

Responding to subjective and objective conditions and challenges at home and abroad, the government will follow the Golden Decade national Vision and vigorously carry out the Economic Power-up Plan, the Free Economic Demonstration Zone plan, and other plans, programs and projects, to boost Taiwan's economic growth potential, and gradually attain the vision of a happy Taiwan that is prosperous, harmonious and sustainable.

Three Guidelines

Over the next four years, the government will dedicate to all-round development in promoting eight policy axles strategies such as "vigorous economy", "Just society", "Clean & competent government", "Prime culture & education", "Sustainable environment", "Comprehensive development", "Cross-strait peace", and "international amity."

In the meantime, the government will work all out to implement the Economic Power-up Plan to promote innovative and diverse industries, develop new export markets, cultivate industry talents, spur investments and public construction, and enhance government efficacy. The government expects to acquire policy effectiveness while boosting domestic economic in a short-term plan and adjusting the economy and industrial structure in the mid-term plan.

Dynamic, Innovative, Equitable & Sustainable Taiwan

The main macroeconomic targets set for 2013-2016 are as shown below:

  • Mid-term Plan (2013-2016)
  • Responding to subjective and objective conditions and challenges at home and abroad; adhering to the governing ideal of creating a prosperous, harmonious and sustainable Taiwan as enunciated in the Golden Decade National Vision; working all out to implement the Economic Power-up Plan, the Free Economic Demonstration Zone plan, and other plans, programs and projects; and through innovation, opening and structural adjustment, along with stepped up institutional adjustment and regulatory loosening, striving to raise Taiwan's economic growth potential, and ensure the greater inclusivity and sustainability of Taiwan's economy. The goals for economic development for 2013 are set as follows:

    • Target for average annual economic rate set at 4.5%.
    • Target for CPI increase rate set at not above 2%.
    • The unemployment rate in 2016 at 3.9% (an employment growth rate of 1.0%, and a labor force participation rate of 58.7%).

    To achieve a 4.5% annual GDP growth rate in the next 4 years, the most important dynamics for economic growth sources consists:

    • Labor input contributes 0.57% (accounting for 12.67%)
    • Capital accumulation contribute 1.21% (accounting for 26.89%)
    • Total factor productivity contributes 2.72% (accounting for 60.44%)
  • Annual Plan for 2014
  • Taking into account of uncertain factors in the international economy such as the impact of the raising of the interest rates by the United States, the challenges of deflation and high unemployment rates in the Eurozone and the slowing of economic growth in Mainland China, and facing with the domestic economy challenges including inclusion in regional economic integration, building momentum for exports, encouraging domestic investment, intensifying adjustment of the industrial structure, boosting real wage growth, improving innovation startups environment, the government will adopt aggressive policy initiatives to create a new economic growth model in order to expand economic growth momentum. The following macroeconomic targets have been set for 2015:

    • An economic growth rate between 3.1% and 3.7%; Per capita GDP USD22,649 to 22,807
    • An unemployment rate of 3.8% to 3.9% (an employment growth rate between 0.7% and 1.0%)
    • Target for CPI increase rate set at not above 2%.

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