full

THE REPUBLIC OF CHINAYEARBOOK 2015 Published by the Executive Yuan, Republic of China (Taiwan)

About the Publisher The Executive Yuan is the executive branch ofthe government of the Republic of China andthe highest administrative organ in the country.It is empowered by the Constitution to carryout its functions and obligations, which includeformulating administrative policies, evaluat-ing statutory and budgetary bills, and makingdecisions on matters of common concern to itssubordinate ministries and commissions. As publisher of The Republic of China Year-book, the Executive Yuan is pleased to presentthis authoritative and insightful window onTaiwan. Aside from the yearbook, the Execu-tive Yuan publishes government press releaseson the most recent events, explanations of poli-cies and programs, and other references thatthe public will find helpful. All of this informa-tion may be found at http://www.ey.gov.tw.

110 °E 120 °E 130 °E Ulan Bator RUSSIA MONGOLIA40 °N Beijing NORTH KOREA 40 °N MAINLAND CHINA Yellow Sea Pyongyang Seoul Sea of Japan SOUTH KOREA JAPAN Shanghai30 °N 30 °N East China Sea Taiwan Strait Taipei Hanoi Hong Kong ROC 20 °N VILEATONAS M (TAIWAN) Dongsha (Pratas) Islands20 °N Kaohsiung Bashi Channel10 °N Xisha (Paracel) Islands Manila Pacific Ocean 10 °N Zhongsha Islands PHILIPPINES C a rt LAB CAMBODIA South China Sea NTUGe o g ra p hy Nansha (Spratly) Islands 0 500 km BRUNEI MALAYSIA 130 °E 110 °E 120 °E



The Republic of China Yearbook 2015 Published by the Executive Yuan Compiled by the Department of Information Services, Executive Yuan No. 1, Sec. 1, Zhongxiao E. Road, Taipei 10058, ROC (Taiwan) http://www.ey.gov.tw 1st edition, November 2015 The full text of this publication is also available in the “ROC Yearbook” section of the Executive Yuan website. Price: NT$550 (US$19)For information on purchasing the yearbook, please visit Government Publications Bookstore: 1F, No. 209, Songjiang Road, Taipei 10485, ROC (Taiwan) TEL: (+886-2) 2518-0207 ext. 15 http://www.govbooks.com.tw or Wu-nan Bookstore Co., Ltd. No. 6, Zhongshan Road, Taichung 40042, ROC (Taiwan) TEL: (+886-4) 2226-0330 ext. 821 http://www.wunanbooks.com.tw ISBN 978-986-04-6013-1 ISSN 1013-0942 GPN 1010401790 Copyright © 2015 Department of Information Services, Executive Yuan All rights reserved. Reproduction of this book, in part or in whole, without written permission of the copyright holder is prohibited.Contact agency: Department of Information Services, Executive Yuan, TEL: (+886-2)3356-6500 Printed in the Republic of China (Taiwan) Printed by China Color Printing Co., Ltd. No. 229, Baoqiao Road, Xindian District, New Taipei City 23145, ROC (Taiwan) ------------------------------------------------------------------ Cover Photo: Kinmen’s traditional red brick houses and wine fermentation pots stand in captivating contrast to the blue sky. Such architecture is just one aspect of local culture protected by Kinmen National Park. (Lian Min-hong, courtesy of the Ministry of the Interior’s Construction and Planning Agency)

ContentsContentsPreface 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .National Symbols 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .National Designation/ROC Year Designations 4National Flag 4National Flower 6National Anthem 6Founding Father of the Republic of China 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ROC Vital Information 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Major Policies 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Time for Taiwan 12All Aboard the Innovation and Entrepreneurship Express! 18Toward a Happier Society: Facilitating Work-life Balance 26Long-term Care Supports Seniors and Families 321. Geography & Demographics 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Geography. . . . . . 40 Demographics. . . . . . 472. Government 54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .The ROC Constitution. . . . . . 56 Central Government. . . . . . 58

ContentsLocal Government. . . . . . 66 Clean, Efficient Government. . . . . . 67E-government Development. . . . . . 683. Foreign Affairs 70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Foreign Policy. . . . . . 72 Bilateral Ties. . . . . . 73Participation in International Bodies. . . . . . 86Development and Humanitarian Assistance. . . . . . 874. Cross-strait Relations 92. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Evolving Relationship. . . . . . 94 Expanding Exchanges. . . . . . 104Looking Forward. . . . . . 1095. National Defense 110. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Strategic Importance. . . . . . 112 Military Threat. . . . . . 112Defense Posture. . . . . . 113 National Defense Reports. . . . . . 114Command Structure. . . . . . 114 Armed Forces. . . . . . 115Weapon System Upgrades. . . . . . 116 Defense Industry. . . . . . 117Personnel and Service System. . . . . . 118Military Education. . . . . . 120Homeland Security. . . . . . 1206. Economy & Finance 122. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .National Competitiveness. . . . . . 124 GDP Profile. . . . . . 124Central Government Revenues and Expenditures. . . . . . 126Financial Services. . . . . . 127

Foreign Trade and Investment. . . . . . 130Small and Medium-sized Enterprises. . . . . . 132Policy Initiatives. . . . . . 133 Regional Economic Integration. . . . . . 1417. Science & Technology 144. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Rise of a High-tech Powerhouse. . . . . . 146S&T-related Government Agencies. . . . . . 148Publicly Supported R&D Institutions. . . . . . 149Latest Endeavors. . . . . . 151 Science Parks. . . . . . 1598. Agriculture 160. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sectors. . . . . . 162 Agricultural Export. . . . . . 167 Agritourism. . . . . . 168Technological Innovations. . . . . . 168 Rural Regeneration. . . . . . 170Agricultural Finance. . . . . . 172 Latest Developments. . . . . . 1729. Environmental Protection 174. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Public Policies Go Green. . . . . . 176 Energy Sustainability. . . . . . 177Pollution Prevention. . . . . . 183 Recycling and Waste Management. . . . . . 184Ecological Conservation. . . . . . 18510. Infrastructure 192. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Land Transportation. . . . . . 194 Maritime Shipping and Ports. . . . . . 200Civil Aviation. . . . . . 201 E-traffic Information. . . . . . 203Telecommunications. . . . . . 203

Contents11. Health & Welfare 208. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Public Health. . . . . . 210 Social Welfare. . . . . . 22212. Mass Media 230. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .News Agencies. . . . . . 232 Print Media. . . . . . 232 Broadcast Media. . . . . . 23713. Education 244. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Mainstream Education. . . . . . 246 Special Education. . . . . . 254Supplementary Education. . . . . . 255 E-learning. . . . . . 256International Exchanges. . . . . . 256 Language Education. . . . . . 25814. Arts, Religion & Sports 260. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Folk Arts. . . . . . 262 Visual Arts. . . . . . 263 Performing Arts. . . . . . 264Cinema. . . . . . 269 Literature. . . . . . 271 Latest Cultural Initiatives. . . . . . 274Religion. . . . . . 275 Sports. . . . . . 281Appendices 287. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I. Global Survey Rankings 288II. Holidays, Festivals & Events 289III. Chronology: 2014 295IV. History of the Republic of China 303V. The Constitution of the Republic of China 311 The Additional Articles of the Constitution of the Republic of China 329VI. A Comparison of Various Romanization Systems 338VII. Abbreviation Index 339

Publisher Executive YuanSupervisors SUN Lih-chyun , CHANG Wen-lanManaging Editors Susan YU , WU Hsing-chieh , TSAI Su-chingDeputy Managing Editor LIN Fang-yanEnglish Editors Jenny CHANG , James SMYTHContributing Editors LIN Fang-yan , TSAI Su-chingDesign Director WANG Shu-yiPhotograph Administrator WANG Chao-chen

PREFACE PREFACE T he Republic of China Yearbook 2015 is an important reference that offers a comprehensive and lively overview of Taiwan and its people. Drawn from a broad range of reliable and official sources, the yearbook chronicles Taiwan’s achievements in science and technology, economy and finance, international and cross-strait affairs, public health and welfare, among others, while also describ- ing major elements of the government’s policies. These include initiatives to further develop cloud comput- ing and the Internet of things, the launch of fourth-generation telecommunication service, and promotion of green archi- tecture. Also detailed are a raft of measures fostering innova- tion and entrepreneurship such as crowdfunding platforms to support young entrepreneurs, and business angel funds to leverage Taiwan’s innovative capacity. Regarding the welfare of citizens, the government is pav- ing the way for long-term care and setting up elder care facili- ties in all 368 townships across Taiwan. Food safety laws were toughened, and the U.N. convention on children’s rights was adopted into domestic law. National fundamental education has been extended from nine to 12 years. The nation also celebrated major milestones in 2014. In February, Taiwan and mainland China held the highest-level and the first formal meeting since the two sides split in 1949. In June, the government officially recognized the Hla’alua and the Kanakanavu as Taiwan’s 15th and 16th indigenous groups. November witnessed the largest local-level government elec- tions ever held in Taiwan’s history. These and other developments are detailed in the pages that follow. With the exception of certain personal and place2

names, Mandarin Chinese terms and names are renderedin Hanyu Pinyin 漢語拼音 throughout the work. All propernouns that are translations of Chinese names, such asSun Yat-sen 孫中山 or the National Health InsuranceAct 全民健康保險法, are accompanied by their originalChinese character names the first time they appear in achapter. Unless otherwise indicated, U.S. dollar figuresfor 2011 through 2014 are based on the exchange rates ofNT$29.46, NT$29.61, NT$29.77 and NT$30.37 per US$1,respectively, as calculated by the Central Bank of the ROC(Taiwan) 中央銀行. The exchange rate for 2015—NT$31.59per US$1—is based on the average rate for that year’s firstthree months. The Executive Yuan 行政院 gratefully acknowledges allthe official agencies and organizations that have providedinformation and helped verify the accuracy of the year-book’s contents. As always, reader feedback and adviceregarding this publication is welcomed and appreciated.Sun Lih-chyun SpokespersonExecutive Yuan 3

NATIONAL SYMBOLS National Symbols National Designation The founding father of the ROC, Sun Yat-sen 孫逸仙, first proposed the name “Republic of China” 中華民國 at the first official meeting of the Chinese Revolutionary Alliance 中國同 盟會 in Tokyo in 1905. Sun said, “Not until that day in autumn 1905 when outstanding individuals of the entire country gath- ered to found the Chinese Revolutionary Alliance in Tokyo did I come to believe the great revolutionary task could indeed be achieved. Only at this point did I dare to propose the national designation of ‘Republic of China’ and announce it to the mem- bers of our party, so that each could return to their respective province and proclaim the message of the revolution and dissemi- nate the ideas behind the founding of the Republic of China.” The name became official on January 1, 1912, when the Com- mittee of Provincial Governors’ Representatives 各省都督府代表 聯合會 from across China declared the establishment of the Republic and swore in Sun as its president. ROC Year Designations In official and most ordinary usages, years in the ROC are calculated from the year of the Republic’s founding, 1912. Thus, 1912 was referred to as “the first year of the Republic of China,” and 2015 is “the 104th year of the Republic of China,” and so on. This is a continuation of the millennia-old system in China of be- ginning new year designations with the start of a new era, which once coincided with the ascension of a new emperor. National Flag The “white sun in a blue sky” portion of the ROC’s national flag was originally designed by Lu Hao-tung 陸皓東, a martyr of the Chinese revolution. Lu presented his design in a meeting of the Re- vive China Society 興中會 in Hong Kong on March 16, 1895. It was redesigned to include a crimson background during the years just4

National flagprior to the revolution. This later design is still used today as thenational emblem. Before the Wuchang Uprising 武昌起義 in 1911 (also known asthe 1911 Xinhai Revolution 辛亥革命), the revolutionary armiesin different provinces had different flags: the one used in theWuhan 武漢 area had 18 yellow stars, representing the 18 adminis-trative divisions of China at the time; the Shanghai army adopteda five-color flag of red, yellow, blue, white and black, represent-ing the five main ethnic groups of China; and Guangdong 廣東,Guangxi 廣西, Yunnan 雲南 and Guizhou 貴州 provinces used the“white sun in a blue sky.” When the Provisional Government was first established, thefive-color flag was adopted as the national flag, the yellow starflag was used by the army, and the “white sun in a blue sky” bythe navy. The current ROC national flag was officially adopted inDecember 1928. The 12 points of the white sun in the emblem represent theChinese conceptualization of a day’s being divided into 12 two-hourperiods, symbolizing unceasing progress. At one level, the threecolors of blue, white and crimson stand for the Three Principles ofthe People 三民主義: nationalism, democracy and social well-being.At another level, the colors embody qualities that evoke otherconcepts enumerated in the Three Principles: the blue signifiesbrightness, purity and freedom, and thus a government that is ofthe people; the white, honesty, selflessness and equality, and thus agovernment that is by the people; and the crimson, sacrifice, blood-shed and brotherly love, thus a government that is for the people. 5

NATIONAL SYMBOLS National flower National Flower The plum blossom, Prunus mume, was officially designated by the ROC Executive Yuan 行政院 to be the national flower on July 21, 1964. The plum blossom, which produces shades of pink and white and gives off a delicate fragrance, has great symbolic value in Chinese culture because of its resilience during the harsh winter. The triple grouping of stamens (one long and two short) represents Sun Yat-sen’s Three Principles of the People, while the five petals symbolize the five branches of the ROC government. National Anthem The words of the ROC national anthem were first delivered as an exhortation by Sun Yat-sen at the opening ceremony of the Whampoa Military Academy 黃埔軍校 on June 16, 1924. This exhortation was designated as the Kuomintang’s (KMT) 中國國民黨 party song in 1928, after which the KMT publicly solicited contri- butions for a tune to fit the words. A melody by Cheng Mao-yun 程懋筠 was selected out of those submitted by 139 contenders. (See page 7 for both lyrics and melody.) In the late 1920s and early 1930s, the Ministry of Education (MOE) held two separate competitions for the lyrics for a national anthem, using the KMT party song in the meantime as a temporary national anthem. None of the entries reviewed by the MOE were deemed appropriate, so Dr. Sun’s composition was finally adopted as the official anthem of the Republic of China in 1937. The anthem first declares the Three Principles of the People to be the foundation of the nation and a guide to a world common- wealth of peace and harmony, and then calls upon the people to be brave, earnest and faithful in striving to fulfill that goal.6

NATIONAL ANTHEM OF THE REPUBLIC OF CHINADr. Sun Yat-sen 孫中山 Music by Cheng Mao-yun 程懋筠 Arrangement by Huang Tzu 黃自 三 民主 - 義， 吾 黨所 宗， 以 建民 - yi, wu dang suo zong, yi jian minSan - min - zhu yi, our aim shall be; to found a freeSan - min - zhu 國， 以 進大 同， 咨 爾 多 士， 為 民 前 鋒， 夙guo, yi jin da tong. LZeiad er duo shi, wvaeni min qian feng, suland, world peace be our stand. on, com - rades, - guards ye are; hold夜 匪 懈， 主 義 是 從， 矢 勤矢 勇， 必 信必ye fei xie, zhu yi shi cong. Shi qin shi yong, bi xin bifast your aim, by sun and star. Be ear-nest and brave, your coun-try to 忠， 一 心一 德， 貫 徹始 終！zhong, yi xin yi de, guan che shi zhong.save; one heart, one soul, one mind, one goal! 7

Founding Father OF THE Republic of China Founding Father Republic of China Sun Yat-sen 孫逸仙, also known as Sun Chung-shan 孫中山 and Sun Wen 孫文, was born in 1866 in a coastal village of Xiangshan County 香山縣, Guangdong Province 廣東省. After receiving his early education in both Chinese and Western schools, he moved to Hawaii in 1879, where he attended Iolani School and Oahu College. In 1883, he returned to China to continue his stud- ies, concentrating on the Chinese classics and history. He later moved to Hong Kong Sun Yat-sen 孫中山 to attend Queen’s College and in 1892 graduated from the Hong Kong College of Medicine for Chinese. Deeply concerned at the Qing 清 dynasty government’s op- pression, corruption and submissiveness toward foreign powers, Sun gave up his medical career to pursue political reform. In 1894, together with a group of young overseas Chinese, Sun established his first revolutionary organization, the Revive China Society 興中會, in Honolulu. His political ideals are summarized in a set of doctrines called the Three Principles of the People 三民主義, com- prising solidarity of the people, power to the people and prosperity of the people.8

Over the next 16 years, Sun and his followers launched 10futile attempts to topple the Qing government. Finally, on Oc-tober 10, 1911, forces loyal to Sun took over Wuchang 武昌, thecapital of Hubei Province 湖北省. Thereafter, other provincesand important cities joined the revolutionary camp and de-clared independence from the Qing government. On Decem-ber 29, 1911, Sun was elected provisional president of the newRepublic by delegates from across China gathered in Nanjing.He was inaugurated on January 1, 1912, the founding day ofthe Republic of China (ROC). To preserve national unity, Sun relinquished the presiden-cy on April 1, 1912 to military strongman Yuan Shi-kai 袁世凱,who declared himself emperor in 1915. Sun and other lead-ers relocated to Japan to continue the revolutionary struggleuntil Yuan’s death in 1916. Thereafter, they organized a newgovernment in Guangzhou 廣州, and in 1921 Sun became itspresident. He devoted the rest of his life to uniting China’sfeuding factions. Sun denied the inevitability of communism in China. Hebelieved that class struggle, an intrinsic element of communism,was not an inevitable stage in human progress. He reiterated thispoint in a joint declaration issued with Soviet envoy Adolf Joffe in1923, which stated that communism was not suitable for China.Sun also believed that cooperation rather than class strugglewas the driving force behind social development. Sun died of cancer on March 12, 1925, at the age of 59 inBeijing. In 1940, he was posthumously declared the foundingfather of the ROC for his lifelong contributions to the revolution. 9

ROC Vital Information ROC Vital Information Official name Republic of China Area (Taiwan and 36,193 square kilometers associated islands) Geographic location Eastern Asia, off southeastern coast Climate of mainland China and north of the Philippines Subtropical (mean temperature 18ºC in winter, 28ºC in summer) Population 23.46 million (May 2015) Ethnicity Over 95 percent Han Chinese (including Holo, Hakka and other groups originating in mainland China); 2 percent indigenous Austronesian peoples Official language Mandarin (with traditional Chinese character system) Other important Holo, Hakka, Austronesian languages, languages English, Japanese Major religions Buddhism, Taoism, I-Kuan Tao, Chinese folk religion, Catholicism, Protestantism, Islam Literacy rate 98.50 percent (2014) Government Multiparty democracy (semi-presidential republic) Major political parties Kuomintang (Nationalist Party), Democratic Progressive Party, Taiwan Solidarity Union, People First Party President Ma Ying-jeou Capital Taipei City Other large cities New Taipei, Kaohsiung, Taichung, Tainan, Taoyuan10

Major industries Electronic components, chemicals, metals, petroleum and coal products,Economic growth rate computers, electronics andGDP (nominal) optoelectronics, machinery, motorGDP per capita vehicles and parts(nominal) 3.77 percent (2014)Export value US$529.59 billion (2014)Import value US$22,635 (2014)Main exports US$313.70 billion (2014)Main imports US$274.03 billion (2014) Electronics, basic metals and articlesMain export markets thereof, plastics/rubber and articlesMain import sources thereof, chemicals, machinery, refinedNational currency petroleum products, optical instruments,Time zone information and communicationsCountry telephone code products, vehicles and transportation-Electricity related products, textiles Mineral products (including crude petroleum), electronics, chemicals, basic metals and articles thereof, machinery, precision instruments, vehicles and transportation-related products, information and communications products, plastics and articles thereof, electrical products Mainland China (including Hong Kong), ASEAN-6, United States, Europe, Japan Mainland China (including Hong Kong), Japan, ASEAN-6, Europe, United States New Taiwan Dollar (NT$ or TWD) UTC +8 hours +886 AC 110 V / 60 Hz 11

MAJOR POLICIES Time for Taiwan With countries worldwide competing for tourists, Taiwan has been developing its tourism brand to share its beauty with the international community. The island is poised to become a major travel destination. Taiwan has received no shortage of rave reviews by media outlets for offering exceptional travel experiences. The New York Times named it one of the world’s 52 places to go in 2014. Its night markets, free wireless Internet access and numerous themed restaurants have received a thumbs-up on the CNN Go website. The Guardian highly recommends a culinary tour of Taiwan, which it named one of 40 must-see places of 2014. Leading travel guidebook and magazine publisher Lonely Planet has repeatedly touted Taiwan as a place worth visiting. China Airlines’ first “Taiwan Tourism Liveried Aircraft” ready for its maiden flight. Inspired by the Tour- ism Bureau’s illustrated logos, this aircraft’s eye- catching livery features Taiwan’s fascinating cui- sines. (Courtesy of the Tourism Bureau)12

Branding of The Taiwan—Taiwan’s Travel The Heart ofand Tourism Asia campaign showcases some Taiwan is aiming to of the country’sattract more than 10 million must-see attrac-foreign tourists annually tions in its mainwhile doubling its number logo (pictured)of mainland Chinese tour- and also depictsists. Effective branding plays Taiwan’s diversea crucial role in achieving charms in sixthese goals. Over 9.91 mil- other illustra-lion tourists from around tions. (Courtesy ofthe globe paid a visit to Taiwan in 2014, attesting to the successthe country has already enjoyed in reinforcing an international the Tourism Bureau)brand image of quality tourism. Taiwan takes great pride in its rich tourism resources andconvenient transportation. It is one of the very few places onearth where tourists can view a magnificent sea of clouds from amountain over 2,000 meters tall in the morning and look over aspectacular Pacific coast in the afternoon; or appreciate ancientChinese cultural and historical artifacts at the world-renownedNational Palace Museum during daytime and admire aboriginalartwork at tribal villages at dusk. Added to the appeal are localnight market snacks as well as Taiwan’s friendly people.Building Taiwan’s Tourism BrandTaiwan—The Heart of Asia Launched in 2011, this branding campaign features Taiwan’scharms in six areas, namely love, culture, LOHAS (lifestyles ofhealth and sustainability), shopping, cuisine, and ecology. Theseattractions are rendered visually on six heart-shaped illustra-tions depicting diverse tourism resources the country offers.Promotional short video clips and music are shared on theInternet and through global media outlets to draw the attentionof foreign tourists. 13

MAJOR POLICIES Taiwan’s exten- sive bicycle trails through diverse and beautiful terrain have drawn cyclists from around the world. (Courtesy of the Taiwan Cy- clist Federation) Time for Celebration—Taiwan Tourism Events Time for Celebration—Taiwan Tourism Events 臺灣觀光年曆 is a calendar that introduces 36 international events held in Taiwan, including major draws like the Taiwan Lantern Festival 臺灣 燈會 and Taiwan Cycling Festival 臺灣自行車節. The calendar’s web- site also recommends tours with six themes: time for love, time to marvel, time for two wheels, time to shop, time to eat, and time for nature. Foreign tourists can access information about the event calendar at http://www.eventaiwan.tw or its mobile app. Quality Quaranteed The most essential pillar to Taiwan’s tourism brand is quality. Offering excellent travel experiences is the key to enticing tourists to return again and again. Diverse World-class Accommodation Choices To ensure the quality of accommodation, a hotel star-rating system has been implemented, as has a “Taiwan Host” certifica- tion for bed-and-breakfast establishments run by families,14

popularly known as “home stays.” Hotel staff are encouraged toenhance their foreign language skills. Taiwan has also welcomedfranchises of global hotel brands, such as Mandarin Oriental,Millennium Hotels and Resorts, and Le Méridien, to increaseforeign visitors’ choices.Seamless Transportation The Taiwan Tourist Shuttle 臺灣好行 service takes travelers to34 popular destinations. The Taiwan Pass 臺灣周遊券 covers serv-ices on regular rail lines, Taiwan High-speed Rail, the Taipei 臺北and Kaohsiung 高雄 metros, and the Taiwan Tourist Shuttle.Taiwan Tour Bus 臺灣觀巴 provides dozens of tour packagescovering island-wide tourist attractions, shuttle services toand from hotels, airports and transport stations, English- orJapanese-language guides, and travel insurance.Accessible Travel Information and Service Taiwan aims to build up tourism quality even in the minutestdetails. Visitor information centers and visitor centers displayinga bright yellow “i” logo have been established throughout major Every spring, blooming calla lilies grace Zhuzihu’s fields at Yangmingshan National Park. (Courtesy of the Tourism Bureau) 15

MAJOR POLICIES transport hubs and recreational sites. In addition, a 24-hour toll-free hotline (0800-011-76524) offering assistance in Man- darin, English, Japanese and Korean is available to help with tourists’ questions. Placing Taiwan’s Beauty on Center Stage Taiwan offers numerous world-class sightseeing spots, year- round festivals and events, and culinary feasts of traditional Chinese food, exotic cuisines and unique Taiwanese snacks, as well as friendly locals, 24-hour bookstores and convenience stores, exhilarating night markets, convenient transportation networks, and diverse high-quality travel infrastructure. Every year, Taiwan’s rich tourism resources generate over NT$370 bil- lion (US$11.71 billion) for the country. Additional efforts have been made to market Taiwan’s tourism internationally. For instance, in 2014, the Tourism Bureau 觀光局 under the Ministry of Transportation and Communications named Japanese celebrity Masaharu Fukuyama an ambassador At the Pingxi Sky Lantern Fes- tival, numerous lanterns bearing words of prayer slowly rise up- ward, creating a breathtaking sight. (Courtesy of the Ministry of Foreign Affairs)16

Taiwanese mas- cot OhBear on a mission to introduce Taipei 101, the tallest skyscraper and one of the most popular sight- seeing spots in Taiwan. (Courtesy of the Tourism Bureau)of Taiwanese tourism. Meanwhile, the cute Taiwanese mascotOhBear 喔熊 has been “employed” by the Tourism Bureau topromote travel in the country as well as collaborate with overseasand domestic mascot projects. OhBear’s eye-catching emoticonsare available on the popular smartphone app LINE. Taiwan has also cooperated with several production teamsfrom abroad that have filmed television shows on the island.Projects include the travel program Fun Taiwan 瘋臺灣, jointlyproduced with the TLC network, as well as a special Taiwanepisode for a popular South Korean travel-reality show. Taiwanese people’s friendliness, passion and hospitality makeeach one of them effective endorsers of Taiwan’s tourism brand.Instead of keeping their homeland’s treasures to themselves,they want to share its wondrous beauty with the world. Foreignvisitors can expect more than just short-lived excitement, asthey will be moved by their travel experiences and look forwardto revisiting Taiwan. Schedule your time for Taiwan, and let theheart of Asia enthrall you.  17

MAJOR POLICIES All Aboard the Innovation and Entrepreneurship Express! “Taiwan’s industries can no longer depend solely on hard work, thrift and efficiency to be competitive; we must rely on innovation. Without a culture of creativity, it will be difficult to build an innovative society and nation.” National Development Council Minister Duh Tyzz-jiun Technological innovations are transforming the way people live and challenging their imaginations. Over the past de- cade in particular, innovation has made the world a better place by bringing change and adding new value to products and services. The late Steve Jobs, co-founder of Apple, dreamt as a young man of starting a business out of his garage and building a product that would dominate the market. Without this kind of imagination, people would stop dreaming, lose out on opportuni- ties, and miss the “innovation and entrepreneurship express” that is overturning traditional thinking. To strengthen Taiwan’s position in the global value chain, the government is pulling out all the stops to make the island an international incubator of innovation and entrepreneurship. This comes as part of the administration’s overall goal of helping young people find their way to the future and creating oppor- tunities for businesses. In an interview with Bloomberg News, National Development Council (NDC) 國家發展委員會 Minister Duh Tyzz-jiun 杜紫軍 explained how Taiwan’s government plans to create such an environment. The following is a summary of the March 4, 2015 interview. Bloomberg: We know innovation is very important for your ministry and for the government in general. Tell us a bit about what’s happening with your plan.18

Duh Tyzz-jiun: People often confuse innovation with entre-preneurship. Actually, innovation is the real driving force of theeconomy and entrepreneurship is a way of translating innova-tion into business. Innovation is the heart of entrepreneurship,which is why we put the emphasis on innovation. In the early days, Taiwan’s economy consisted mainly ofprocessing-intensive industries, so the emphasis was on efficiencyand automation. But we have reached the limits of automationefficiency, and now we have to rely on innovation to create moreadded value. For this reason, Taiwan’s government establishedthe Statute for Industrial Innovation 產業創新條例. How do we make innovation take root in businesses and in-dustries? Aside from policies and laws, the government is usingincentives such as awards for corporate innovation or researchgrants for big and small businesses. It is worth mentioning thatwe support not only scientifically based innovation but also otherforms such as social innovation, education innovation or work-force innovation. As for promoting entrepreneurship, the government is set-ting up several startup clusters in Taiwan while connecting with Among Taiwan’s profusion of innovations is the Paper Shoot, a camera made with non-toxic recycled paper. The safe, light- weight design makes it ideal for the littlest aspiring photog- rapher. (Courtesy of Paper Shoot) 19

MAJOR POLICIES entrepreneurs abroad, because we have to look at the domestic as well as global markets. To help more early-stage companies obtain funding, the NDC has allocated NT$1 billion (US$33.59 million) into an angel fund to support worthwhile startups in Taiwan, help- ing close to 100 projects already. The government has also devoted over NT$10 billion (US$316.56 million) in venture capital so far to enable local startups to continue driving Taiwan’s innovation. Is this NT$10 billion venture capital for startups in Taiwan or overseas? It is primarily for startups in Taiwan to nurture the creative talent here, but we also welcome innovators from overseas. So for example, if a startup in Silicon Valley has a good idea, we will reach out to them and invite them to realize their dreams in Taiwan. Innovative ideas need support in terms of manufacturing or production. Turning an idea about integrated chip functions into a product, for instance, will require design, engineering and pilot production—areas in which Taiwan excels. We hope to combine their ideas with Taiwan’s technologies and patents, to add value to their innovation. To help new businesses ob- tain capital for growth, Taiwan has taken a variety of mea- sures including a trading board for startups, an equity-based crowdfunding mechanism, and an SME credit guarantee fund.20

If there is an innovator in Silicon Valley, as you mentioned,how will you let them know that Taiwan is the place to gofor funding and technical support? The government is working with the private sector to setup a Taiwan Silicon Valley Technology Fund 臺灣矽谷科技基金that will create an investment network for Taiwan in SiliconValley. If the fund managers find a suitable project there forTaiwan to collaborate on, the government provides them withan incentive bonus. This is a purely service-oriented platform to seek out inves-tors and help turn ideas into products. Let’s say a startup wantsto make a product containing integrated chips, metal parts,rubber parts, and a lot of other components. The platform canfind other companies to partner with. And if the experts thinkthe product might work better with extra functions but theintellectual property (IP) for those functions are owned by, say,the Industrial Technology Research Institute 工業技術研究院 inTaiwan, the platform can even request authorization from theinstitute. The services will be completely customized.How crucial are these initiatives to the overall drive for eco-nomic restructuring in Taiwan? Taiwan is already shifting from an efficiency-driven to aninnovation-driven economy. However, traditional businesses havein the past been more comfortable taking on the kind of workthey have most control over, and that is OEM (original equip-ment manufacturing), or making parts for other manufacturers.They are less comfortable making new products because of theuncertainties involved in turning new technologies into serv-ices and products or developing new markets. But with OEM,they can quickly calculate their share of costs and profits andleave the development and marketing worries to someone else.And because these businesses have been accustomed to OEMproduction for so long, it will be difficult for them to switch toinnovation, branding and marketing. The change must be madeone step at a time. The way we make this change is by adjusting the industrystructure. In 2014, the Executive Yuan 行政院 approved an action 21

MAJOR POLICIES plan by the Ministry of Economic Affairs for industrial struc- ture adjustment. Guidance and incentive measures are used to help companies alter their old business models. Larger com- panies have an easier time making the change, but small and medium-sized enterprises (SMEs) need the larger companies to adjust the entire supply chain. The SMEs also receive busi- ness guidance from government agencies such as the Industrial Development Bureau (IDB) 工業局, which is working with tradi- tional businesses, service industries, machine tool companies, and other core industries. Making a total transformation is no easy task for Taiwan, but the government will begin by finding success stories in each sec- tor and making them models for other businesses. How big of a threat is the challenge of mainland China? Is that the major driver for why Taiwan must change? Competition is ever present in the international arena. Those not moving forward will be replaced. We cannot com- pete with mainland China on mass production or market scale, and many people are not keen on the model where Taiwan A cradle of digi- tal innovation, CLBC cowork- ing space in Tai- pei provides an affordable place where young entrepreneurs can work and share their ideas with other start- ups. (Courtesy of Taiwan Panorama)22

receives orders and sends production abroad, but this is a nec-essary arrangement. For instance, if I wanted to make a notebook today, I couldnot make it in Taiwan. I would have to send the notebook fac-tory to the country with the lowest production costs. High-volume manufacturing requires significant resources, but Taiwanis short on production resources. It requires a lot of land to buildfactories on, but we do not have that much land. It also requiresa lot of labor, electricity and water, but Taiwan does not havethat much labor, electricity or water. Taiwan wants to create not industries that consume re-sources but rather industries that rely on intangible resourcessuch as innovation and IP rights. In earlier days, Taiwan led theworld in CD-ROM production volume but did not profit fromit because all the IP rights were owned by Philips and Sony. Wecannot go down that same path; we must move upstream andinvest in more research and development (R&D), encouragemore innovation, create more IP, and send production to coun-tries with more resources.Is mainland China becoming a stronger competitor? It is inevitable. Mainland China is quite strong in termsof entrepreneurship because its market is larger than ours,making it easier to start an e-commerce company like Alibaba,whose meteoric rise could not have been possible in Taiwan.E-commerce grows more rapidly on the mainland becausethe land is spread out and the cities are more concentrated,so people who do not live in a first-tier city cannot accessmany products. Third-party payments is another area seeing faster growthon the mainland because Taiwan already has a vast array ofpayment tools including online credit and debit cards, and cashon delivery to convenience stores. Mainland China, meanwhile,does not use as many credit cards or other payment tools, sothird-party payment represents a good opportunity for entre-preneurs there. However, a lot of things are not transparent in mainland China,including their laws, so our government would not recommendthat market for inexperienced young Taiwanese entrepreneurs. 23

MAJOR POLICIES By creating jobs for young people and op- portunities for businesses, the government is making Taiwan an interna- tional base for innovation and entrepreneur- ship. (Courtesy of the Ministry of Economic Affairs) How is Taiwan more attractive to innovative talent than main- land China or other countries? For our own young people, the government is building a vibrant entrepreneurship environment. In addition to train- ing and education, we offer cluster facilities where startups can gather and spark one another. We are also considering giving grants for young entrepreneurs to go to Silicon Valley in the hope that they will someday serve as Taiwan’s bridges in the supply chain or as partners in R&D projects. For foreign entrepreneurs, Taiwan is a safe place to live, its people are friendly, and foreigners can enjoy our world-class health care system after staying here just four months. To create a more attractive environment, the government is also chang- ing laws to make it more convenient for foreigners to enter or exit the country or to reside here long term. However, at this time, Taiwan is only open to Chinese entrepreneurs from Hong Kong and Macau and not the mainland because of concerns in our society about mainland workers, companies or investments coming to Taiwan.24

What is the government doing to help startups to raise capital,secure loans or go public? In 2014, we established the Go Incubation Board for Startupand Acceleration Firms 創櫃板, or GISA, a trading board whereinnovative companies can list their shares and raise the fundsthey need. By May 2015, the Financial Supervisory Commission金融監督管理委員會 will also set up an equity-based crowdfund-ing mechanism to help startups find shareholders. People will beable to use it to invest and own shares in the company. In addition, we have the Small and Medium EnterpriseCredit Guarantee Fund of Taiwan 中小企業信用保證基金, whichprovides SMEs with credit guarantees of up to 70 to 90 percentof their loans. If a new company drums up a lot of orders from a crowd-funding campaign but is unable to come up with the product,the IDB will find a suitable partner to help the company com-plete the product. Taiwan wants to help companies achieve theirdreams and to continue the partnership into the future. Apartfrom giving innovators the means for realizing their goals, thegovernment will also arrange IP cooperation so they can createeven more products and services.To sum up, what are Taiwan’s priorities in creating an innovationand entrepreneurship environment? One priority is deregulating business activities such as third-party payments, equity-based crowdfunding, and establishmentof new companies. The government is also changing laws tomake it easier for foreign entrepreneurs to come to Taiwan.Another priority is fostering a culture of innovation. Taiwan’sindustries can no longer depend solely on hard work, thrift andefficiency to be competitive; we must rely on innovation. With-out a culture of creativity, it will be difficult to build an innova-tive society and nation.  25

MAJOR POLICIES Toward a Happier Society: Facilitating Work-life Balance With increasing wages, shorter working hours, and a friendlier work- place for women and older workers, Taiwan is advancing toward a happier society where workers enjoy a better balance between their jobs and personal lives. Raising Basic Wages to OBoost Work Efficiency n July 1, 2015, Taiwan raised its basic wages for the fifth time since January 2011, this time increasing the monthly rate from NT$19,273 to NT$20,008 (US$610 to US$633), up 3.81 percent, and the hourly rate from NT$115 to NT$120 (US$3.64 to US$3.80). This upward adjustment was largely driven by commodity prices (especially those of food stuff), which had been swelling since 2014 to the point of undermining the livelihoods of ordi- nary workers. And with businesses profiting from an economy that was on pace to grow above 3 percent in 2014 and 2015, the government hoped a hike in the minimum wage would spur companies to give across-the-board pay increases, which could in turn enhance the efficiency of their employees. To help labor and management reach faster agreements on basic wage adjustments in the future, the Ministry of Labor (MOL) has formed a working group under its basic wage screen- ing committee. Each quarter, members of the committee meet with experts to study domestic economic development and the consumer price index and to deliberate whether the minimum wage should be adjusted.26

Lifting the mini- mum wage will satisfy as well as motivate workers. On July 1, 2015, Taiwan raised the monthly basic wage for the fifth time in five years—this time by 3.81 percent. (Courtesy of Taiwan Review)Cutting Work Hours forBetter Life Quality Another key element contributing to a worker’s sense ofhappiness is working hours. Currently, Taiwan’s statutory work-ing hours are 84 every two weeks, which is longer than the 40per week in Japan, South Korea and the United States. Taiwan’sservice and manufacturing industries work even longer regularand overtime hours: nearly 39 percent of service businesses putin more than five days a week, including 68 percent of health carecompanies and 59 percent of hotels and eateries. To help laborers achieve a balance between work and life,both labor and management have agreed to shorten statu-tory working hours to 40 per week or 80 every two weeks. Butwith business operations and work shifts growing ever morediverse and complex, further law changes are underway suchas to raise the limit on overtime hours, revise calculations forovertime pay, and offer extra compensation for holiday work.To collect feedback from all sectors, the MOL has conducted 27

MAJOR POLICIES The government is working to shorten statu- tory working hours to en- hance laborers’ quality of life. (Courtesy of Taiwan Review) 30 forums with a view to making work-hour regulations more flexible. Making the Workplace Friendlier for Women With an aging populace and dwindling birth rate, Taiwan’s working age population is projected to begin declining after peaking in 2015. To prevent an associated decline in national competitiveness, the government has put a high priority on raising the labor participation rate, particularly for women and workers ages 45-64. The labor participation rate for women in Taiwan stands at 50.5 percent, only slightly higher than that in Japan and South Korea. For women over 45, however, Taiwan’s rate is much lower. To encourage more women to take part in the labor market, the government has rolled out a host of incentives and measures: • Granting subsidies to workers who take unpaid parental leave. More than 260,000 people have benefited from this measure.28

• Raising childbirth subsidies under Labor Insurance 勞工保險 from one to two months’ salary.• Calculating maternity leave pay based on the employee’s regular wages on the day before taking maternity leave. Such pay should not be lower than the average daily wage over the six months prior to childbirth.• Increasing paid paternity leave from three to five days, which can be taken during the 15 days before and after childbirth (including the day of birth).• Granting pregnant employees five paid days off to undergo prenatal checks.• Guaranteeing half pay for three days of menstrual leave per year, and the three days will not be counted as part of sick leave. For women over 45, the lower labor participation ratecould also be related to their commitments to family andchildren. If Taiwanese businesses can learn from Europeanand American companies and offer flexible hours or work-at-home options, women could more easily work and care fortheir families at the same time. Raising women’s labor participa- tion rate is a high priority on the govern- ment’s agenda. (Courtesy of Taiwan Review) 29

MAJOR POLICIES Redesigning Jobs for Middle-aged Workers People in the 45-64 age group generally have more difficul- ties finding jobs and are likely to experience more weeks of unemployment than younger age groups. Moreover, their labor participation rate in Taiwan is 60.7 percent, lower than that of many countries. To strengthen the work capacity of this group and raise employers’ willingness to hire them, the government has enacted legislation and administrative measures that remove barriers to work and employment. In October 2014, the MOL set up the Senior Workforce Development Service Center 銀髮人才就 業資源中心 to help older job seekers find work. It also promoted a Job Redesign for Middle-aged Workers 中高齡職務再設計 pro- gram among companies, creating a friendlier workplace and tailoring jobs that not only suit middle-aged workers physically and mentally but also enable them to continue contributing their rich experiences. Building a friendlier work- place can raise workers’ sense of happiness, which can in turn enhance the well-being of wider soci- ety. (Courtesy of Taiwan Review)30

With growing demands for a better quality of life, peoplein Taiwan also expect greater job satisfaction, but higher wagesalone are no longer enough. As such, companies that are ableto build a sense of happiness for their employees can enhancethe well-being of wider society as well. To recognize enterprisesthat stand out in this regard, the MOL launched the Work-LifeBalance Award 工作生活平衡獎 in 2014. By lifting up employersthat lift up their employees, the government hopes these andother policies will encourage both sides to come together andwork toward a happier society.  31

MAJOR POLICIES Long-term Care Supports Seniors and Families Demographic aging is an important health issue the world over. The establishment of a complete long-term care system allows people to grow old peacefully and happily in their own homes or communities. Thanks to improvements in sanitation and nutrition as well as medicine and technology, human life expectancy is longer than ever. Meanwhile, due to changes in society and family values, the birth rate has quickly and continuously fallen. As a result, the number of Taiwanese requiring care will increase while the work force and the number of family members who can look after their elderly relatives decrease. Social, eco- nomic and political development will all be affected. This makes it especially important for governments to establish comprehen- sive long-term care systems to allow senior citizens to pass their days happily and peacefully. Taiwan Soon to Become an Aged Society According to Ministry of the Interior statistics, through the end of 2014, 2.81 million of Taiwan’s residents were age 65 and over, 12 percent of the total population. Unless the nation’s birth rate sharply increases, senior citizens’ share of the population will reach 14 percent in 2018—making Taiwan an aged society—and 20 percent in 2025—making it a super-aged society. Taiwan is aging at the third-fastest rate in the world, equal to Japan and slower than only Singapore and South Korea.32

The growth of the elderly population has increased thedemand for long-term care. According to a Ministry of Healthand Welfare (MOHW) survey, the number of disabled citizenswill rise from about 710,000 in 2012 to 1.18 million in 2031.To adapt to demographic aging, the declining birth rate, andthe weakening of families’ care capabilities, the government isestablishing a long-term care system in three stages: promo-tion of the National 10-year Long-term Care Plan 我國長期照顧十年計畫, establishment of the Long-term Care Service Network長期照護服務網, and the creation of long-term care services andinsurance acts.The National 10-yearLong-term Care Plan In response to rising demand, in 2007 the Executive Yuan 行政院launched the National 10-year Long-term Care Plan. The planintegrates the services and resources of various administrativesystems to supplement manpower and facilities, develop local-ized, diverse resources and raise service quality. This is intendedto guarantee disabled seniors as well as other physically andmentally handicapped people receive appropriate services andto boost their independent and autonomous life skills, upholdinghuman dignity and raising quality of life. By the end of 2014,more than 150,000 people had been provided with such services,and over the past seven years, the rate of disabled elderly receiv-ing care has risen by 14.4 times: from 2.3 percent to 33.2 percent. The 10-year plan focuses on disabled individuals whomevaluators determine require assistance in day-to-day living.These include senior citizens age 65 and over, physically andmentally handicapped people age 50 and over, aborigines age55 and over, and elderly people who have lost capabilities andare living alone. Service content and quantity vary based on thedegree of one’s disability and the financial circumstances ofone’s family. Available services include home nursing; rehab athome and in the community; respite services; care services;assistive device purchase or rental assistance and aid with 33

MAJOR POLICIES A complete long- term care system is being estab- lished to help the elderly live peacefully and happily in their own communi- ties. (Courtesy of Taiwan Panorama) home improvements to make one’s environment barrier-free; and long-term care institutions. Long-term Care Service Network In March 2012, the Long-term Care Service Network plan was completed. It aims to make such services available every- where, including remote rural areas. The plan categorizes the entire nation into 22 large districts (counties/cities), 63 sub-districts and 368 smaller districts (townships) based on service resource demand. In 2013, a total of 120 day care centers were completed across the 63 sub-districts. In 2014, 22 dementia community care points were established, while all 22 counties and cities offered medium-term care (the number of hospitals providing medium-term care jumped to 147 from just 18 in 2013). By 2016, diverse day care service resources will be estab- lished in all 368 townships, and at least one integrated-service station will be set up in each of 89 remote rural townships with insufficient resources (66 had been established by 2014). As of34

2015, in each of the sub-districts there will be at least 700 bedsfor every 10,000 disabled people. From 2014 to 2016, a totalof NT$10 billion (US$329.27 million) will be invested in the368 townships to offer diverse care services in each, allowingdisabled seniors to receive proper support close to home duringthe daytime. Everyone yearns to enjoy a healthy lifestyle in a familiarenvironment in one’s twilight years. Hence, the governmentplans to complete a long-term-care databank by the end of2016. It will use a cross-district smart medical care model toallow remote districts’ residents and senior citizens to receivecheckups and care at home, saving them the trouble of travelinglong distances to medical institutions. Manpower is the key to successful care. Since 2010, thegovernment has launched long-term care specialist training instages, actively promoting establishment of manpower data-banks. In response to the shortage of care service personnel,the Legislative Yuan (Legislature) 立法院 in May 2015 passed theLong-term Care Services Act 長期照顧服務法, which defineslong-term care professionals’ status. Supporting legislation willbe written to establish the means for certifying one’s professionalqualifications. Moreover, the MOHW is drawing up a gradeand promotion system for care personnel, and the Ministry ofEducation is formulating long-term care curricula and estab-lishing a care internship system. These measures are expected toraise citizens’ incentive and willingness to enter the profession.Legislation GuaranteesRights and Interests In order to establish a stable and sustainable long-termcare system and guarantee the quality of such services, relevantservice standards must be systematized and legislated. Long-termcare regulations were included in the Senior Citizens WelfareAct 老人福利法, the People with Disabilities Rights Protection Act身心障礙者權益保障法, the Nursing Personnel Act 護理人員法 andthe Mental Health Act 精神衛生法, which have already been 35

MAJOR POLICIES promulgated. However, there was overlap between these acts’ definitions of people who need care, and there were also still some individuals not legally guaranteed the care they needed. Hence, the Department of Health 行政院衛生署 (the MOHW’s precursor) in 2010 sent a draft of the Long-term Care Services Act to the Executive Yuan for consideration. The draft was approved by the Executive Yuan in 2012 and sent to the Legis- lature, where it was ratified on May 15, 2015, a major milestone for the nation. This act covers long-term care services’ content; personnel and institutional management; guarantees of the rights and interests of those receiving care; and incentives for service development. It makes relevant regulations clear and uniform, giving aspiring industry entrants rules to follow and allowing private investment in home, community and insti- tutional live-in services. Thanks to this legislation, protections are extended not only to the disabled but also to family caregivers. In 2015, the number of people with disabilities and dementia nationwide surpassed 760,000. If each such individual influences the lives of two family members, the law can benefit more than 700,000 families and more than 2 million people in all. The MOHW estimates that following the law’s passage, more than 53,000 caregivers and medical care personnel will be needed. If the Long-term Care Insurance Act 長期照顧保險法 is passed, almost 40,000 more such individuals will be required. This demand will greatly assist the industry’s development and the national employment rate. Spreading the Risks and Reducing Burdens In general, a person who becomes disabled and requires care will affect the lives of at least two family members. These families take on heavy psychological and economic burdens. They are in dire need of a complete long-term care service system that can distribute these loads and risks, as the nation already does in other areas through its health, labor, and farmers’ insurance and pension systems.36

The government has promoted legislation and programs to ensure Taiwan has abundant professional care personnel. (Courtesy of Taiwan Panorama) The government has been planning a national long-term careinsurance system since March 2009. Having entrusted expertswith policy analysis while referring to Germany’s, Japan’s andSouth Korea’s measures, it will adopt a social insurance systemthat disperses the risk and eases the financial burdens on disabledindividuals and their families. Together with the National HealthInsurance 全民健康保險 and pension systems, long-term careinsurance will make Taiwan’s social security more complete andallow citizens to grow old peacefully. The Executive Yuan haspassed the draft act and sent it to the Legislature for consideration. The government will continue shouldering its responsibilityto establish a complete care system that allows Taiwan’s growingnumber of senior citizens to enjoy appropriate care and servicesclose to home and to live with dignity.  37

Splendid blanket flowers sprawl along Penghu’s beautifulcoastline. (Courtesy of the Ministry of Foreign Affairs)

1 Geography &Demographics

1 GEoGRAPHY & DEMOGRAPHICS Geography OTaiwan Proper the eastern and southeastern coasts of the Asian continent lies a chain of island groups stretching from Russia’s Sakhalin Island in the north to Indonesia’s myriad islands in the south. Situated near the chain’s midpoint, between Japan and the Philippines, is the island of Taiwan. (In this chapter, the name Taiwan refers to Taiwan proper.) Measuring about 400 kilometers from north to south and around 145 kilometers from east to west at its widest, Taiwan comprises over 99 percent of the territory now under the Republic of China’s (ROC) jurisdiction. It is blessed with a wide range of landforms and contrasting climatic zones. Mountains and Hills Mountains occupy about half of Taiwan. e longitudinal East Ri Valley 花東縱谷 separates the high-reaching Central Mountains 中央山脈 from the lower East Coast Mountains 東部海岸山脈 along the central eastern coast. In addition, at the northernmost extremity of Taiwan lie the Datun Mountains 大屯山脈. ey form the northern wall of the Taipei Basin 臺北 盆地, where Taipei City 臺北市, the nation’s capital, is located. Mostly forested, the four major mountain ranges in the island’s central region include more than 200 peaks rising higher than 3,000 meters above sea level, making for some of Taiwan’s most dramatic scenery. e eastern anks of these four ranges are relatively precipitous, with the easternmost among them the Central Mountains bordered by relatively Taiwan Proper: Surface Area and Geographic Coordinates Area*(sq. km) Coastline (km) Longitude Latitude 35,808 1,139 Easternmost 121°59' 15\" E Northernmost 25°18' 20\" N Westernmost 120°01' 00\" E Southernmost 21°53' 50\" N *Including reclaimed tidal land Source: Ministry of the Interior40