Taiwan s Development Strategy for the Next Phase. Dr. San, Gee Vice Chairman Taiwan External Trade Development Council Taiwan

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1 Taiwan s Development Strategy for the Next Phase Dr. San, Gee Vice Chairman Taiwan External Trade Development Council Taiwan

2 Outline 1. Some of Taiwan s achievements 2. Taiwan s economic challenges 3. Taiwan s economic relationship with Mainland China: Utilization or necessity? 4. Taiwan s Economic Development Policy in the Next Phase 5. Taiwan and TPP 2

3 1. Taiwan s achievements How Taiwan ranks in international competitiveness Ranking institute or report Global ranking Taiwan Asia- Pacific ranking Singapore Global ranking Asia- Pacific ranking BERI Business Risk Report (US) (2013-II) IMD World Competitiveness (2013) WEF Global Competitiveness (2013) World Bank Doing Business (2012) World Bank Knowledge Economy Index (KEI) (2012) Sources: BERI; IMD; WEF; World Bank

4 1. Taiwan s achievements Number of Taiwanese patents and patent density in the US Sources: United States Patent and Trademark Office (USPTO); Department of Industrial Technology, Ministry of Economic Affairs, Taiwan; Market Research Department, TAITRA 4

5 1. Taiwan s achievements IMF GDP per capita(ppp) global ranking GDP of Major Global Economies and Taiwan Economies GDP per capita (PPP) (USD) Nominal GDP per capita ( 美元 ) 1 Qatar 102,211 99,731 2 Luxembourg 79, ,206 3 Singapore 60,410 51,162 4 Norway 55,009 99,462 5 Brunei 54,389 41, Taiwan 38,749 20, Japan 36,266 46, France 35,548 41, South Korea 32,272 23, Malaysia 16,922 10,304 Global total 11,789 10,168 Sources: IMF, 2013/09/12. Taiwan s GDP per capita taken from data from the Director-General of Budget, Accounting and Statistics, Executive Yuan, Taiwan. GDP per capita (PPP) data are estimates by the IMF. 5

6 1. Taiwan s achievements Distribution of Domestic Income for Major Countries (According to per capita income) Ranking Country Year of survey Gini Coefficient 1 Sweden Norway Finland R.O.C. (Taiwan) Germany Japan United Kingdom Mexico Brazil Columbia Source: Statistics issued by each country, collected by the Director-General of Budget, Accounting and Statistics, Executive Yuan, Taiwan. 6

7 1. Taiwan s achievements 1 st : Australia, Sweden 10 th : Iceland 19 th : Taiwan 20 th : Slovenia 22 th : Japan 28 th : South Korea 30 th : Greece Sweden Australia Canada Norway Switzerland US Denmark Netherlands UK Iceland New Zealand Finland Luxembourg Austria Ireland Belgium Germany France Taiwan Slovenia Spain Japan Italy Czech Rep. Israel Poland Slovakia S. Korea Portugal Greece Hungary Estonia Russia Brazil Chile Mexico Turkey Happiness Index of Taiwanese Citizens 2013 Happiness index of OECD countries and Taiwan 2.72 The higher the BLI index, the happier life is for citizens of the country, and the higher the ranking. As the OECD does not include ASEAN countries, they are not included in this chart. Sources: OECD; Director-General of Budget, Accounting and Statistics, Executive Yuan, Taiwan Taiwan,

8 2. Taiwan s economic challenges (1) Isolation in the international economic environment (2) Challenges in technological advances (3) Insufficient economic scale (4) A conservative bureaucracy (5) An aging population 8

9 3. Taiwan s economic relationship with Mainland China: Utilization or necessity? January to August Taiwan s exports to Mainland China (including HK) Export ratio and degree of dependence on foreign trade Export ratio export ratio degree of dependence on foreign trade Note: Degree of dependence on foreign trade = Total value of imports and exports / GDP Source: Ministry of Finance import and export statistical database, Directorate-General of Budget, Accounting and Statistics; data compiled by the Market Research Department, TAITRA 9

10 4. Taiwan s Economic Development Policy in the Next Phase Taiwan should develop a mechanism to enjoy mutual benefits economically with Mainland China and complement each other. (1) Netherland s example (2) Finland s example (3) Sweden s example 10

11 5. Taiwan and TPP Taiwan becoming a TPP member certainly will turn out to be one with the most creativity and contribution. (1)TPP has become one of the world s most influential regional economic integrations. (2)Taiwan joining the TPP will be a great benefit for regional integration. 11

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