Marked by a series of corruption scandals, waning domestic confidence in its ability to sustain its economic growth, and a growing military challenge stemming from the People’s Republic of China (PRC), Taiwan’s security environment is complex and dynamic.
With an eye on national elections scheduled for December 2007 and March 2008, Taiwan’s political landscape is becoming increasingly polarized as opposite ends of the spectrum seek to dominate the island’s political agenda. Fierce political debates are taking place on topics as diverse as the rising national debt, competing requirements for central government expenditures, challenges in shoring up its revenue base, and the growing migration of Taiwan’s industrial sector toward mainland China.
In this political and economic environment, Taiwan’s defense establishment is coping with how best to ensure an adequate self-defense capability with limited resources. This quarterly report reviews events over the last quarter, including the ongoing political paralysis, economic security issues, and trends in defense policy.