Friday, May 23, 2003
The economic impact of SARS might be more critical than the emergency generated by the Asian financial crisis of 1997, according to president of Academia Sinica, Lee Yuan Tze. Lee make a report to Legislative Yuan two days ago that researchers at the Institute of Economics have been working on a series of projects related to the effects of the disease outbreak on Taiwan's economy and people's social behavior.
He said that a report shows the magnitude and the speed of the effect on Taiwan's economic activities since the SARS outbreak in early April are higher than those of the Asian financial crisis, the Sept. 21 earthquake in 1999 and the two international oil crises in the late '60s and early '70s. The report also includes detailed analysis of Taiwan's economic growth, the structure of the job market and the manufacturing industries. The report also analyses the interdependence of the economies on either side of the Taiwan Strait, the impact of globalization, and the nation's medical services.
To get a better understanding of how the disease is spreading and of the effectiveness of the government's preventive measures, researchers of the institute's "Geographic Information System" project are integrating related reports from the Taipei City Government and the Center for Disease Control, Lee said. He added that all life science-related departments of the institution are working on projects related to SARS. The research includes methods of detecting the disease, research on infection paths and the development of vaccines and a possible cure.
The current situation of severe acute respiratory syndrome epidemic (SARS) epidemic in Asia could improve the opportunity for Taiwan to develop into a regional research and development and logistics center, according to former economics minister, Vincent Siew
The simultaneous outbreaks of SARS in Taiwan, China, and Hong Kong will prompt entrepreneurs to rethink their global business strategies. In order to fight with SARS, Siew said the government must let both Taiwan and foreign enterprises should consider Taiwan as the center for R&D as well as logistics and advanced processing operations. For economic transformation, he said, Taiwan must not rely on just info-tech and biotechnology but also generate higher added value by traditional manufacturing and small and medium enterprises.
Concerning Taiwan's economic interaction with the mainland, Siew said the government should set up more convenient, expedient, and secure flows of both products and capital with effective management. The division of labor between business partners in Taiwan and the mainland should be readjusted so that Taiwan can take full advantage of China's economic boom, he said. SARS poses as a severe test for both the government and enterprises to cope with crises, he said, adding that the epidemic can also be seen as a negative effect of the globalization movement.
Siew said corporate leaders should set up more sophisticated risk-management mechanisms and that the current government should also revive the regional business operations center project mapped out by the previous government led by the KMT. Presently Siew serves as the chairman of the Council for Economic Planning and Development (CEPD) and Chung Hua Institution for Economic Research.
By: DocMemory
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