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Taiwan's Anti-Corruption Strategy: Suggestions for Reform

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Taiwan's Anti-Corruption Strategy: Suggestions for Reform SA ANTI-CORRUPTION I UGGESTIONS FOR Jon S.T. Quah SCHOOL OF LAW UNIVERSITY OF MARYLAND Maryland Series in Contemporary Asian Studies General Editor: Hungdah CHIU Executive Editor: Chih-Yu T. WU Associate Editor: Matthew Lyon Managing Editor: Chih-Yu T. WU Assistant Editor: Connie M. NG Younyoung LEE Editorial Advisory Board Professor Robert A. Scalapino, University of California at Berkeley Professor Bih-jaw LIN, National Chengchi University Dr. Ying-jeou MA, Chinese Society of International Law Professor Toshio SAWADA, Sophia University, Japan All contributions (in English only) and communications should be sent to: Chih-Yu T. WU University of Maryland School of Law 500 West Baltimore Street Baltimore, Maryland 21201-1786, USA All publications in this series reflect only the views of the authors. While the editor accepts responsibility for the selection of materials to be published, the individual author is responsible for statements of facts and expressions of opinion contained therein. Subscription is US $40.00 per year for 4 issues (regardless of the price of individual issues) in the United States and $45.00 for Canada or overseas. Checks should be addressed to MSCAS. Tel.: (410) 706-3870 Fax: (410) 706-1516 Price for single copy of this issue: US $18.00 ISSN 0730-0107 ISBN 1-932330-31-3 @Maryland Series in Contemporary Asian Studies, Inc. TAIWAN'S ANTI-CORRUPTION STRATEGY: SUGGESTIONS FOR REFORM Jon S.T. Quah* TABLE OF CONTENTS I. INTRODUCTION ................................... 1 II. TAIWAN'S POLICY CONTEXT .................... 3 III. PERCEIVED EXTENT OF CORRUPTION IN TAIWAN ...................................... 9 IV. CAUSES OF CORRUPTION IN TAIWAN.......... 24 V. TAIWAN'S ANTI-CORRUPTION MEASURES .... 52 VI. EVALUATION OF TAIWAN'S ANTI- CORRUPTION MEASURES ..................... 64 VII. SUGGESTIONS FOR REFORM .................. 71 EPILOG.. ................................... 89 LIST OF ABBREVIATIONS ..................... 91 ACKNOWLEDGEMENTS....................... 92 SELECTED BIBLIOGRAPHY ................... 94 I. INTRODUCTION In April 2009, the Hong Kong-based Political Economic Risk Consultancy (PERC) reported in its annual survey of corruption in Asian countries that Taiwan was ranked for the first time below China.' President MA Ying-jeou rejected this finding and ordered the anti-corruption agencies (ACAs) in Taiwan to "produce a re- view report on major corruption cases and work out a plan to im- * Jon S.T. Quah, Ph.D., is an Anti-Corruption Consultant based in Singapore and a Vice-President of the Asian Association for Public Administration. He was a Profes- sor of Political Science at the National University of Singapore and Co-editor of the Asian Journalof PoliticalScience until his retirement in June 2007. He is the author of Curbing Corruptionin Asia: A ComparativeStudy of Six Countries (Singapore: Eastern Universities Press, 2003); Combating Corruption Singapore-Style: Lessons for Other Asian Countries (Baltimore: School of Law, University of Maryland, 2007); and Public Administration Singapore-Style (Bingley: Emerald Group Publishing, 2010). 1. Taiwan was ranked 9th with a score of 6.47, behind China, which was ranked 8th with a score of 6.16. The PERC score ranges from 0 (least corrupt) to 10 (most corrupt). See "RP ranking improves in Asian corruption survey," ABS-CBN News Online, April 8, 2009, available at http://www.abs-cbnnews.com/print/49430. (1) 2 CONTEMPORARY ASIAN STUDIES SERIES prove the situation within three months." 2 On the other hand, according to Transparency International's 2009 Corruption Percep- tions Index (CPI), Taiwan was ranked 37th with a score of 5.6 while China was ranked 79th with a score of 3.6. Similarly, PERC's 2010 survey ranked Taiwan 8th with a score of 6.28, ahead of China, which was ranked 10th with a score of 6.52.4 Is Taiwan more corrupt than China? How serious is the prob- lem of corruption in Taiwan? What are the causes of corruption in Taiwan? How does Taiwan combat corruption? How effective is Taiwan's anti-corruption strategy? What can be done to improve Taiwan's anti-corruption strategy? This monograph addresses these questions by providing a comprehensive analysis of the anti-corrup- tion strategy adopted by the various governments in Taiwan since the relocation of the Kuomintang (KMT) government in December 1949 from mainland China to Taiwan after its defeat by the Chinese Communist Party (CCP). While some research has been done on corruption in Taiwan as shown in the Selected Bibliography, there is still a significant research gap on the causes of corruption in Tai- wan and how it combats corruption. Apart from redressing this knowledge gap, the purpose of this monograph is to provide some suggestions to Taiwanese policy- makers for reforming and improving the existing ACAs in Taiwan. Unlike Singapore, Hong Kong, South Korea and Thailand, Taiwan relies on multiple ACAs to curb corruption.' The main thesis of this monograph is that Taiwan can only improve the effectiveness of its anti-corruption strategy by addressing the five causes of corruption and replacing its reliance on multiple ACAs with the creation of a single, independent, and adequately funded and staffed ACA like the Corrupt Practices Investigation Bureau (CPIB) in Singapore or the Independent Commission Against Corruption (ICAC) in Hong Kong. The CPIB and ICAC are highlighted as two role models for 2. Y.F. Low, "President reaffirms resolve to fight corruption," Central News Agency, April 8, 2009, available at http://www.etaiwannews.com/etn/print.php. 3. See Table 18 in Section VI of this monograph. Unlike the PERC score, the CPI score ranges from 0 (most corrupt) to 10 (least corrupt). 4. "S'pore least corrupt nation," Straits Times, March 9, 2010. 5. For a comparative analysis of the effectiveness of the ACAs in Singapore, Hong Kong, South Korea and Thailand, see Jon S.T. Quah, "Defying Institutional Failure: Learning from the Experiences of Anti-Corruption Agencies in Four Asian Countries," Crime, Law and Social Change, Vol. 53, No. 1 (February 2010): 23-54. TAIWAN'S ANTI-CORRUPTION STRATEGY 3 Taiwan to emulate because of their effectiveness in curbing corrup- tion in Singapore and Hong Kong respectively.6 This monograph is divided into seven sections. The purpose of this monograph has been specified in this introductory section. Sec- tion II describes the policy context in Taiwan in terms of its geogra- phy, history, economy, demography, and political system as these factors influence the formulation and implementation of Taiwan's anti-corruption strategy. Section III diagnoses the perceived extent of corruption in Taiwan by documenting the incidence of bureau- cratic corruption, vote-buying in elections, and political corruption namely, heijin or "black gold" politics. Section IV analyzes the ma- jor causes of corruption in Taiwan. Section V provides an analysis of the anti-corruption measures employed in Taiwan. Section VI evaluates the effectiveness of these anti-corruption measures. Fi- nally, Section VII concludes the monograph by providing four sug- gestions for improving Taiwan's anti-corruption strategy. II. TAIWAN'S POLICY CONTEXT Geography Taiwan is an island separated from the southeastern coast of mainland China by the narrow Taiwan Strait.' It is 394 kilometers long and 144 kilometers wide, and has a land area of 36,179 sq km and a coastline of 1,566.3 km.8 Eastern Taiwan is mountainous and consequently, 90 percent of the population lives in the flat plains in the west. Taiwan has a marine climate in the northern part and mountainous areas but the south has a tropical climate and is warm and humid throughout the year. The rainy season lasts from May to June and from July to October, and Taiwan is vulnerable to ty- phoons, with an average of four typhoons per year. Although 55 percent of the island is forest, only 24 percent of the total land is arable. The natural resources in Taiwan include 6. Jon S.T. Quah, "Benchmarking the Performance of Anti-Corruption Agencies in the Asia-Pacific Countries," in Anuradha K. Rajivan and Ramesh Gampat (eds.), Perspectives on Corruption and Human Development, Volume 2 (Delhi: Macmillan Publishers India, 2009), p. 796. 7. In addition to the main island of Taiwan, there are many islands under Taiwan's control namely: the 64 Pescadore or Penghu Islands, Orchid Island (Lan Tao), Green Island (Lu Tao), the Offshore Islands of Quemoy and Matsu, and some islands in the South China Sea. See John F. Cooper, Taiwan: Nation-State or Province? 5th edition (Boulder: Westview Press, 2009), p. 2. 8. These geographical data are obtained from The Republic of China Yearbook 2009 (Taipei: Government Information Office, 2010), Chapter 1, "Geography." 4 CONTEMPORARY ASIAN STUDIES SERIES small deposits of asbestos, coal, copper, gold, natural gas, and mar- ble. In addition to typhoons, Taiwan is also vulnerable to earth- quakes because of its location along the seismic belt and its mountainous nature. With 42 active faults on the island, it is not surprising that Taiwan experienced about 20,000 earthquakes dur- ing 1994-2008. Taiwan has a well-developed transportation network of 40,000 kilometers of roads and a public railway system that provides ser- vices between more than 200 stations and covering 1,100 kilometers in length9 in addition to an advanced telecommunications services. Taiwan's advanced transportation and telecommunications infra- structure is an important asset in fighting corruption as the various ACAs would have no difficulty in enforcing the anti-corruption laws throughout the country. However, Taiwan's susceptibility to natural disasters like earth- quakes and typhoons means that there will be opportunities for cor- ruption during the post-crisis periods when government agencies and international relief agencies provide humanitarian assistance to those affected by the disasters. This means that the ACAs in Taiwan must be vigilant during such periods to detect and take action against corrupt behavior. History There are two important historical experiences which have in- fluenced Taiwan's anti-corruption strategy today.
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