Annotation 2 (Revised)

In the previous annotation, I used the example of the Taiwan’s Ten Major Constructions as evidence to fortify my point. I mentioned that even in the worst of the situation one should never give up on developing economy. Although the public opinions maybe supporting the developing of social welfare than developing economy. One should never follow it blindly for it had proven by my annotation 1 as a false chose. Moreover, in this annotation I am going to discuss how costly it would be if we refuse to embrace economy development.

What is the difference between locking ourselves from the outside world and committing a suicide? Refusing to take Economy development is no different than the frog in the well that knows nothing of the great ocean. With the expansion of the ASEAN 10+1 proposal and the signing of various FTA (Free Trade Agreement) between different countries; the Taiwanese government should take concern on how to avoid our economy to become isolated from the world. If not the consequences will result in the unemployment rate and the social welfares of the public. According to National Policy Foundation, the websites cites that if the Taiwanese government refused to sign ECFA (Economic Cooperation Framework Agreement), then we will have to endure the heavy customs in trade while other FTA signed countries will be totally free of it. The condition will be even worse for Taiwan is not diplomatic recognized by other countries, therefore, make it hard to get into advantages in cooperation.       

Articles had been written and comments being made to warn the citizens of Taiwan the danger of signing ECFA (Economic Cooperation Framework Agreement). According to Professor Kenneth S. Lin of the department of economics at National Taiwan University, he says in his blog that the signing of ECFA means the decrease of job opportunities and the increase of unemployment rate. He says, though, the Taiwanese government reassure that the Chinese labors will not be imported; the unlimited flow of money and techniques will eventually corrupt the current boundary and raise unemployment rate. It is because companies tend to manufacture their product with the greatest profit as possible. However, I am against to the professor’s thought. I think that even with great risk we should not lock ourselves up. It is inevitable for countries to survive outside of this global bond. If we do then we will be like North Korea which suffers in poverty and famine.

 Moreover, if we use the economic term “comparative advantage” to strengthen our point, we will see that it suggests that since the world had turned into a global village, it is profitable for the company then to search for places that require the less demands on customs. With this restriction in mind, countries outside of this hub-spoke game will be eliminated. As a result, companies may be forced to move to another country, factories may be shut down and the happiness of the people will be deprived.   

In recent years the role of China had transformed from World Factory to World Market. It is inevitable to make trade and cooperation with China. Moreover, the arising economic potential of the south eastern Asia had also attracted many investors and countries to invest. Therefore, I think it is urgent and necessary for the Taiwanese government to sign ECFA. To be frank, the worries about signing ECFA will affect the traditional industrial such as agricultures will not to be worried. For I think it is normal for the traditional industries to face such challenge. The solution on the other hand will not be how to protect them but how to help them transform into a more modern type. It is then better to come out of our own cage and face the fact that cooperate with other countries will be the future trend. Following this concept and you will eventually be satisfied.    

Sources:

http://www.npf.org.tw/post/2/7761

http://kslintw.wordpress.com/2009/06/08/%E5%8F%8D%E5%B0%8Decfa-9%E5%A4%A7%E7%90%86%E7%94%B1/ 

http://tw.news.yahoo.com/%E5%AD%B8%E8%80%85-%E6%95%88%E7%9B%8A%E6%87%89%E6%AA%A2%E8%A6%96-%E4%BD%86%E6%B2%92ecfa-%E5%87%BA%E5%8F%A3%E6%9B%B4%E5%B7%AE-152345975.html

http://tw.news.yahoo.com/ecfa%E6%95%88%E7%9B%8A%E4%B8%8D%E5%A6%82%E9%A0%90%E6%9C%9F-%E6%B0%91%E7%9C%BE%E7%84%A1%E6%84%9F-122559433.html