Minidragons; Taiwan; 102

Get. Funding provided by financial guarantee insurance company strength security liquidity FDIC tomorrows security for small Asian countries have the fastest growing economies on and we wear the clothes they make. We drive the cars and watch the TVs. They manufacture and we have a name. We call these countries the mini dragons. They're driven by the values of Confucius values like hard work and a hunger for education. They're fueled by a young energetic population and they've created an economic miracle. Do they threaten our prosperity and our jobs. Do we need to master their formula for success. Now meet a mini dragon going through ten changes. Taiwan. It is accumulated amazing wealth but it's still struggling with democracy.

South Korea Singapore Hong Kong Taiwan. Centuries of tradition and culture are. Devastated and. Now the new economic power is of age. South Korea Singapore Hong Kong Taiwan many mini dragon.

So many people. Taiwan is the other China. This island about half the size of South Carolina look kindly alongside the mainland maybe tiny in size but it export more than the entire Peoples Republic of China and the average person in Taiwan is 27 times more than the average mainland. Taiwan is truly the capitalist challenge to the communist giant but economic success. Adult cry. The people of Taiwan. You will see. Each Chinese New Year people pray for the future and remember the past. Taiwan a small island 90 miles off the coast of mainland China. This New Year's seems rich with promise.

Well the future looks bright. There are still signs of a darker past 40 years of dictatorship and martial law that have only recently given way to a growing democracy. For much of this time Taiwan was an island of two very separate societies divided not by race or religion but by birthplace. Here native Taiwanese have lived for generations here to live. Former Chinese mainlanders who fled to Taiwan with Chiang Kai shek after his defeat by the communists in 1949 obsessed with winning back China the mainlanders Zhang's Kuhlman time took control of Taiwan's government leaving commerce to the Willing hands of the native Taiwanese. In a single generation. Taiwan has amassed great wealth. It is among the world's top exporting nations on this island of entrepreneurs. There is no

unemployment. The gap between rich and poor is smaller than anywhere in the world. But the island's success threatens its future. For many Taiwanese are tired and angry tired of working so hard and angry at a government that ruled with an iron glove for 40 years with martial law finally lifted four years ago. The pace of democratic reform has quickened but new freedom has fueled new demands on Taiwan. The future seems filled with questions. This morning Frank used thoughts are on the future the future of his factory in a place where one in 14 owns a business. Frank sees his labor costs rising and his labor pool shrinking. Frank makes tennis racquets for Japanese and American companies in this family

business. His wife keeps the books so far. Business is good. Here 140 people work day and night producing tennis rackets for prints Yamaha and Kawasaki. Frank has developed the unique carbon fiber process to fashion rockets a very high quality. But 45 percent of his direct costs are labor. And in Taiwan cheap labor is a thing of the past. He simply cannot find and keep enough good workers. Yet if he is to stay competitive he must expand capacity. Like other manufacturers. Frank's answer may lie in Mainland China where labor is still cheap. Technically the common tongue government the KMT opposes direct investment in the mainland but official attitudes are changing.

So Frank must weigh the business risks while struggling to keep the workers he has. Because the KMT controls the banks personal connections or Guang she helped fuel Taiwan's entrepeneur is creating the financial capital they need. Frank's network of friends and alliances often leads to new business opportunities. All of us could be involved in managing a new company with up to three questions. What do you expect from this new partnership. Who is really going to oversee the business and how much profit am I going to make. A former employee recently asked Frank to join him in a new business venture to take advantage of the booming economy and start a cement business. Frank and his two

partners are here to strike a deal. I hope our new company generates a steady profit stream. Well before I start a new business the main thing is just to be sure what the return on investment would be a 50 percent return. Sounds great. You maybe an offer I can't refuse. Although cement has little to do with tennis rackets. Frank will put up the money personal connections once she is the deciding factor. They celebrate the partnership with songs and drink or as it's called. OK. So.

All. Frank and his extended family live in a large family compound in teaching Taiwan's third largest city. When Frank was just a child his father lost his business. He died soon after and his family was left with nothing. Frank's mother did what she could to raise 10 children. Only Frank was able to go to college.

Now the most successful member of his family Frank takes care of his brothers and sisters. For Frank like many Taiwanese wealth created a sanctuary in a world that for too long lacked personal freedom. In contrast to the prosperous West Coast Taiwan's east coast was largely untouched by development. Chong Paul came here with a vision. To Tame the forests and manufactures silicone for Taiwan's booming steel industry.

He constructed roads dug wells and even built his own hydroelectric plant to power his factory. Back then people laughed at him for there were already 30 such factories in private hands. But the high cost of state owned electricity soon drove them out of business. Now only Mr. ties factory remains. Each week Mr. theye returns to watch over his factory. The people here see him as

a savior for he has given them jobs provided electricity and brought development to the area. Taiwan's economic success is due primarily to seven hundred thousand or more small and medium sized businesses. Mr. outside himself owns three different companies. Called Mr. Bridge because of all the structures he's built. He's speaking tonight at Taipei's Rotary Club. In this room sits some of Taiwan's most successful businessmen. Only one representative from each industry can become a member of his elite group. And they just elected Mr. Tsai chairman during the decades when native Taiwanese were denied access to political power economic wealth and success provided its own security.

Like so many of his countrymen Mr. Saj has bitter personal memories of the early days of KMT control. When Mr. I was a young man the Japanese moved to Taiwan. When the Japanese were forced out after World War II. Mao Tse tung was battling Chiang Kai shek for control of China in 1949. On the eve of Communist victory Chiang Kai shek fled to Taiwan with 600000 KMT soldiers and two million mainlanders. In the Cold War years that followed. Taiwan grew in strategic importance. The United States supplying almost 5 billion dollars in military aid to keep the

KMT in power and helped stop communist aggression. To fortify their islands stronghold the KMT declared martial law intensifying hostility between the navy of Taiwanese and mainlanders hostility that began years before Chiang Kai shek ever set foot on the island. On February 20 1947 what is now called the 228 Incident. Taiwan's KMT governor brutally suppressed a popular uprising killing ten thousand native Taiwanese at this time Mr. Tsai was arrested and brought to the KMT prison known as Green Island. The government says that the PI of anything very closely at the time of the 2:28 incident I was. You didn't need to at Tyvon University we

told the government to treat us the same as the maid did. We wanted human rights and democracy all the time. But the common thought of our leaders and plan to kill all of Taiwan's indeed during the 228 Incident. Mr Tideland Taiwanese forces fighting the KMT. He was imprisoned along with thousands of other intellectuals. Those sentenced to death twice Mr science somehow managed to survive spending the next 12 years in prison. When I was in Ireland I vowed if I ever left this prison alive I would fight injustice and look after the family of those who died. My Chinese tradition the elderly are cared for by their families there is little tradition of public welfare in any Chinese society. So in spite of the island's affluence a welfare system is still not fully established.

The elderly KMT soldiers who left their relatives on the mainland need the most help each month. Mr. Outside donates money here to Taiwan. They are poor people. They can't even survive without places like this. The government should treat them fairly and look up the day after all they believe. Then follow me down to Taiwan in the first place. Some still hold on to the politics of the past to the dream of defeating the communists and returning victorious to the mainland. But others see Taiwan's future lying in a different direction and become impatient with the regime still dominated by elderly mainlanders. Frank dreams of expanding his business he may soon have the chance.

He's been developing a new carbon fiber racket which could bring more business and more prestige. This afternoon Frank will present the new model to his Japanese client. There has been talk that once the prototype is accepted the Japanese will place a very large order. This could be the jam. Frankie's been waiting for the show and this. English is often the international language of business. This model will be one of the world's most extensive and exclusive carbon fiber records. Like

this choice they make. Yes but here's the material for all. Of this. As I said. Before.

My parents generation never wanted feelings for whom we were always talking about wide open spaces about how beautiful everything about how wonderful they would be to my parents. When I say my generation is like Granth. Until recently a second generation mainlander was

Taiwan's number one actress. I was never satisfied being alive. I felt I was just a tool for whatever that you might want to take. And gradually I came to realize being expressed my. Menander just spend their time gambling at my gym about well you could say I grew up next to my agent Paiva my mother emotionally was very weak and my father was for his last 10 years as a member and he represented my team the capital of our country.

Snow coming back official has been able to see for 40 years although my father began to dissipate in poverty. He still kept his position. Now I have awakened to be in control of our political situation. Now I have my own view. In exile on Taiwan. The KMT decreed that all its legislators would remain in office until a victory over the communists allowed for new elections in effect. Like in Father the legislators became parliamentarians for life able to forestall political change on Taiwan for four decades and mongs father died a year ago and now she's finding her own voice. She came here today to meet Mr. Liang an old family friend a powerful member of Parliament.

Mr Liang was very close to her father and since his death keeps watch over her mom and her family. Here are the treasures of ancient China await the KMT is victorious returning to rule the mainland. But who the Hmong and her generation know their future lies on Taiwan. So who will work to make her island home a better place. And intrusions left in the mainland. Well there are some. You can't compare them with these. My friend went over there and told me all trans Rosenfarb into time go so fast. How long has it been since your father died. Well almost a year. Or are you planning to have a Mallos of it.

I don't believe in such things but you need to honor his memory. I disagree. A memorial service is just for show it doesn't mean much to me. The old order is changing and Chiang Kai shek vision has dulled now. Taiwan's people are ready to confront their past. In 1990 a city of sadness a film portraying the events surrounding the 228 Incident was released and received international acclaim. The friend

who is moving to cause painful memories. To get 228 Incident Taiwan hands we're increasingly afraid to speak out. But now Taiwan Simon past is out in the open. Throughout Taiwan the city of sadness has become a requiem for those who died and could never be publicly acknowledged. Everybody else.

Historically the Taiwanese have never controlled their own fleet. They call them always being controlled by foreign forces wouldn't you. And so you see my father was like many other Taiwanese who worked hard running the business. We lost everything when the key and he took power. My father died in despair. And yet. With growing economic success demands for democratization proved impossible to ignore. In 1986 the Democratic People's Party the DPP was formed the next year and martial law was lifted and the pace of reform accelerated Shuey University professor and environmentalist is one of the DPP candidates for the national parliament with 18 million Taiwanese and only

two million members. The DPP calls for a Taiwan of by and for the Taiwanese a a final. Exam two years come still they're making sure they get every possible vote. In this campaign and only one third of the students are up for election.

Two thirds will still be held by the elderly lifetime parliamentarians. But Taiwan's government is changing. The president is a native Taiwanese as are some KMT members of parliament. The old divisions are beginning to disappear. Second generation mainlander has decided to speak out because of our economic. People don't have to worry about food clothing shelter material like this comfortable. We can enjoy our prosperity this was having a lot of security. On the contrary the riches have brought order to all the basic needs of our life. Water and food polluted everything within and to make it the objective of acquiring wealth is to improve our

standard of living. We haven't achieved our objective at all. I do not think we have been truly successful with making a mistake. Something must be done giving it a a. During this campaign the KMT will massively outspend its rival. To win votes. Wealthy KMT supporters throw huge banquets. Often people go to a new feast night after night receiving free food and drink. Many Taiwanese entrepreneurs sympathize with the DPP and provided financial

backing. But in spite of democratisation they often donate money in secret fearing the KMT may strike back of their businesses. When we disagree with lifetime parliamentarians they never admit they and they believe they are the legitimate representative for me as a man. I have created a very temporary way of thinking than the government of Taiwan is only temporary. Stay here and hungry this way of thinking has caused all the problems we have in Taiwan today. They only think about that Flanary about me of making a profit a

major goal instead of pursuing what's good for our country. Frank you have come here tonight because these issues touched him deeply as well. How can we make a better life to create a bright future. I call out to all of you. If you really love this country then please change your life because real change must come from within a. Frank is returning to his birthplace find them one hour south of his factory and home in the morning is filled with questions. Will he be able to satisfy his Japanese client. Will Labor shortages sink his business. And what will happen in this volatile political climate. Searching for answers. He is returning to his words.

When I was a child or was everyone in my village work in the sugar cane industry you seen it. My father owned a factory as a subcontractor to the Japanese. But after the war when the KMT took over they forced him to close his factory and it took all his land to Egypt. When he died we were left with nothing. It fell to my eldest brother and sister to support the family. Thanks to them I was able to go to college of course. That was. Quite joke. There's nothing left where my father

used to be with me when I see this emptiness I feel and Turris to work hard to rebuild what's been destroyed because I started out with nothing. Anyway I no longer need to feel afraid. There must be a way to reach a new world. A. These men are wealthy entrepreneurs but they share more than just business success. Educated under Japanese rule all were prisoners on Green Island. Even now some find it painful to speak of those terrible years. If they thought man was the lead he'd be dead in no time. The government didn't care if they rounded up a hundred innocent people as long

as just one was guilty. I joined a reading circle during high school after graduation all my members of the group were interned one after the other. I still don't know what crime I had committed. Even in the dead of winter we just wore underwear. Prisoners had to alternate sleeping and standing in that condition. Even pigs would die after living through a great Nyland nothing else was as difficult as that experience in my life. I agree life in prison was terrible but it gave us the strength and the will to see. By electing the KMT candidates began to celebrate with fireworks to mark a certain victory in Taiwan's first free elections since martial

law ended. The next day the KMT would win A.D.C. the DPP 21 but the KMT share of the popular vote wouldn't fall from 70 to 59 percent. That in itself is a victory for the new party. A A. Frustrated by the election's outcome who we went to see Mr. reaal once again we came to Taiwan to fight for democracy.

I'm going back to the Mignonne's some day if I can't. My son or his son. But the problem is here in Taiwan in our Parliament there are very few lifetime parliamentarians like you who still think clearly and have a sense of fairness. Why did he hold onto that position. So not only isn't there some way they can step down. We always like to look at issues from both the historic and global perspective. I like the Taiwanese only think of their local interest. I'm not complaining because the power needs of control over the business world. We don't. This way the situation is solve all the problems today have to do with equities and injustices of the past 40 years. What we can't do now is find the things we came to Taiwan. Women have always had superiority over the native Taiwan move in a family.

You have parents and children and our nation is a family that is mother young the children who control politics. That's true in other countries too. So even if we are old I don't think we are preventing progress in any way. But in Taiwan today neither the and no business worry about land or human values. The only thing they care about economic development. Even if they do recognize the importance of protecting the environment we still put a priority on economic wealth. There is no pope to go under. He is sitting in that high one from a backward poor nation to the economic prosperity and political stability that we enjoy today. The

French prototype racket has been tended to be uprooted and announced to the Japanese press in Tokyo. Bjorn Borg is on hand to promote the rocket that would now bear his name. So is the president of the Japanese company Franke's racket please. Bjorn Borg. But the Japanese are still not satisfied. It has been a. Troublesome transparency problem has not been solved.

Frank and his company must still prove themselves to the Japanese. Frank gets his big order it will be shipped out here. I Kaushal Taiwan's largest port in the mid-1960s the KMT began to encourage multinational companies primarily from America and Japan to locate their factories here. All attracted by Taiwan's political stability. Labor and government tax breaks foreign capital Chordia the island's economic powerhouse was born in manufacturing and exporting consumer goods to the United States and Europe.

Here also is the center for Taiwan's heavy industry especially refineries and petrochemical plant while their products helped fuel Taiwan's economy. Their waste pollutes its air and water a car showing the rice paddies are flooded with polluted water. Farmers can no longer eat or sell their rice. Now the hidden dangers are visible and people's anger is growing. Hmong has started traveling across Taiwan helping local anti-pollution

movements and speaking out against the forces that threaten the environment. And the mystery size house is surrounded by four bodyguards its windows made of bulletproof glass. It's the price he pays for economic success in Taiwan. Violent crime is on the increase. Kidnapping is not uncommon. Now this child's father was a political dissidents now dead.

Her mother is a DPP member. Both are now under Mr. size protection. The other cost of economic success is political turmoil as the DPP make new demands and call for reforms. Reporters are monitoring police this morning in sound off the Papillons aha. Shouting slogans demanding a so-called lifetime parliamentarian stamped down a handful of demonstrators who were removed the police in light of the growing protests here. The government warned that further violence by the demonstrators will not be tolerated. But supporters doubt there will be more protests until free elections are held for the seat in Parliament and with the transparency problems finally saw Frank must pay

subcontractor steep fees to fill the Japanese order without more workers he cannot meet his deadlines. These Liebler for recruiting employees were just reprinted. The average salary in our company already exceeds 20000 in a month. Even so recruiting new workers has not been successful. Even with newspaper ads the responses are low. How can we expand with this and shortage of labor. So for Frank to stay competitive he must leave Taiwan. The only question remaining is where to find willing workers instead of Malaysia. I think we should transfer our factory to mainland China. Training and communication is very important and the language of the local employees will be a crucial factor

in the transport system as well organized within China's special economic zones. This is the first point. Also over all instruction training and technology transfer can be achieved smoothly to all be able to communicate in the same language will make things easier. For these reasons I think we should consider mainland China as a strong possibility for our future expansion because of cold war hostilities. Direct Investment in the mainland has long been forbidden. But in the new political climate more than 2000 entrepreneurs have built factories on the mainland by going through Hong Kong francs first shipment for the Japanese company is almost ready. He'll make the delivery date but just barely. Next time things may not go so well. The only solution is greater capacity. And Frank must make a tough decision.

Parliament's new session approaches Mr. Liang hopes to be elected chairman of the Upper House although his seniority should make the vote just a formality. He's taking no chances. Rumors say his election will be challenged by the DPP. So Mr. Liong called this meeting the strategy. He should give the opposition a chance to speak out. But if you let them debate it would take too much time.

Today's session is only two procedural issues so so is human not to spend time on anything else. With pressure mounting to retire a whole lifetime parliamentarians Mr. Liang is about to face the biggest challenge of his political career. Open conflict between the KMT and the DPP has become a fact of life for most new democracy a a a a a

a student led demonstrations break out in Taipei. The Lifetime parliamentarians tried to vote themselves to greater powers supporting the students is widespread and the attempt fails. In response President Lee promises a faster pace of reform. Good enough for the Taiwanese have lost the courage to fight after a long history of oppression and an authoritarian regime. The students courageous acts came as a big surprise to me. After all those years of government controlled

a a world without. Taiwan silent past is now in the open for all to see a

past where political stability brought wealth and prosperity but at a price. The debt is being repaid. Soooo whole lifetime parliamentarians will be retired and full elections are promised as liberalization continues. In Taiwan politics and economics cannot be separated. As the citizens of this tiny island look to the future. Can they pull together to sustain their economic miracle have it in these times of rapid change you must learn how to use self-control. That's very important. What I see all around me is too many people who become too busy by money and speculating in the stock market

money is Taiwanese tradition and national sense of purpose just because we are a hard working people. Personally I'm very worried about this. As you know there is a tendency for the sporting goods business to ship its factories overseas because the cost of labor is so high in Taiwan. Many companies have already moved to Thailand and the Philippines. We ourselves will visit mainland China to research possible sites for factories in the future. But in Taiwan we can only work together and try harder. I believe there is still a way to survive. We just in a period of transition. This traveling hearing Golden Gate Park was a gift from the citizens of

Taipei to the people of San Francisco. It's like a little piece of home for the overseas Chinese who came here from America looking to fly new routes for them. China was closed off and Taiwan seems only temporary. Now finally things are changing. The hostilities softening Taiwan is starting to bear what it calls the policy of the three no no contract no negotiations no compromise with the communist. Now the three nos seem more like three maybe for the first time. Taiwan authorities officially permit investment in the mainland provided it goes through a third country such as Hong Kong. I know officially the Taiwanese have been doing business there for years especially in Fujian Province where 70 percent of Taiwanese have their ancestral rule. Meanwhile inside Taiwan there have been dramatic changes in the political arena changes that are rapidly propelling Taiwan toward full democracy. Since the end of

martial law in 1987. Taiwan has allowed greater freedom of speech and greater freedom of the press. It has also allowed new political parties to form a real opposition. The DPP has emerged to challenge the old monolithic KMT. The old man in the legislative bodies are retiring to be replaced by representative elected by the people themselves in an amended constitution has been promised by the new year. If all that happens it could be a model of democracy for other developing countries especially China and high tech America. The hard earned wealth of Taiwan is showing up in your way. A few examples. The computer giant Acer has bought out a number of its American competitors. Taiwan biggest company. Chinese Petroleum has taken over a major Texas oil and gas producer while for most of plastic now has been petrochemical plants in the United States. But Taiwan success is also due

to another investment and investment that goes back thousands of years to ancient China and the legacy of Confucius a popular Chinese proverb says everything is inferior to learning like the other mini dragons. Taiwan has one of the highest literacy rates in the world. This highly educated population provides a major advantage of Taiwan positions itself for the next phase of industrialization into high tech 21st century. But there's a downside to highly educated workers no longer want a blue collar job. So Taiwan is facing a serious labor shortage. This is a challenge all the many dragons face and how they solve it is the key to their continuing success. If you take the long view and the Chinese always do Taiwan and mainland China are bound to unite someday and if Taiwan has done so much with so little imagine what similar entrepreneurship could do with all the resources of China behind it.

Next time take a look at a mini dragon with an exotic reputation and a hard nosed approach to making money single for. Funding provided by financial guarantee insurance company strength

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