The summer of 2009 was stormy for Taiwan, both literally and figuratively. While still struggling with a weak (albeit apparently stabilizing) economy, the island was hit by the most destructive typhoon in 50 years. Typhoon Morakot was a catastrophic event that also had powerful political ramifications. The political aftermath of the typhoon spilled over into the defense arena in the form of leadership changes and new mission priorities at the Ministry of National Defense (MND). In the meantime, the effects of Taiwan’s fiscal realities are beginning to show, with a significant tightening of defense spending in the FY2010 government budget.
This quarterly report will review the major political events that transpired during the third quarter of 2009, along with the significant defense and national security developments over this period. The report will also cover defense spending and budgetary issues, along with the normal look at the status of select programs.