Managing A Great Taiwan

Written by Peter Li-Chang Kuo

(Chinese)

“Managing a Great Taiwan” is a book compiled from President Lee Teng-Hui’s speeches during his presidency, published in 1994. Among the 23 books he gave away, this one carried the greatest weight. It explores the source of leadership confidence—"faith"—and offers methods for solving contemporary issues, with richly detailed content.

Fig 1: “Managing a Great Taiwan” by Lee Teng-Hui, 1994

The book presents a profile of Lee Teng-Hui the Administrator, highlighting his professional approach to public affairs management, rather than focusing on political disputes. As a national manager, Lee emphasized public service and policies for the people, particularly:

1. A worldview from Taiwan’s perspective and a strategy for adapting to the new international order.

2. Taiwan’s strategic positioning within the Asia-Pacific industrial cooperation network.

In terms of reform and leadership, Lee drew insights from years of practical experience. He likened a leader to someone rafting down the winding, rapid currents of the Xiuguluan River in Hualien—needing to maintain "balance" amid turbulence. A leader must possess the ability to envision dreams, inspire colleagues to share in those dreams, and skillfully mobilize necessary resources to make them a reality.

Economic Policy:
Under President Lee’s leadership, Taiwan’s economy quickly advanced toward liberalization and internationalization. Policies included the removal of interest rate controls, relaxation of gold export restrictions, licensing of new banks, the establishment of a foreign exchange market, and the deregulation of new airline companies. One of his most forward-looking initiatives was the implementation of the "Six-Year National Development Plan," with an investment of USD 300.3 billion. This plan aimed to accelerate modernization and promote trade and technology cooperation with other nations, significantly raising Taiwan’s per capita income upon completion.

Foreign Affairs:
With a pragmatic foreign policy, the Republic of China (ROC) began playing a more active role internationally. President Lee successfully established formal contact with many countries and strengthened substantive ties. Taiwan rejoined the Asian Development Bank and became a member of both the "Asia-Pacific Economic Cooperation" (APEC) and the International Science Foundation. Direct flights between Taipei and many global cities were established and continued to grow. Through the International Cooperation and Development Fund, Taiwan also provided economic aid to its diplomatic allies.

The book discusses Taiwan’s efforts to join the "General Agreement on Tariffs and Trade" (GATT). Following the 1994 Uruguay Round Agreement, the "World Trade Organization" (WTO) was officially established on January 1, 1995, replacing GATT as the global trade rules framework. Taiwan later joined the WTO on January 1, 2002, under the name “Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu”, becoming a full member.

Cross-Strait Relations:
Even before tensions across the Taiwan Strait began to ease, President Lee foresaw a future in which China would be unified under a system of freedom, democracy, and shared prosperity. In 1990, he established the "National Unification Council" under the Office of the President and formulated the "National Unification Guidelines" as Taiwan’s highest policy principles regarding relations with Mainland China. Over time, restrictions on cross-strait exchanges were gradually relaxed, and unofficial interactions increased—developments which, Lee believed, would eventually catalyze democratization in Mainland China.

Democratization:
In 2010, during several discussions with former President Lee, he reflected on his 12 years as “national manager.” He believed that the Republic of China was founded in 1911, held a constitutional convention in 1946, and implemented its constitution in 1947. Chiang Kai-shek was elected the first president in 1950 in Taipei. Upon succeeding the presidency in 1988, President Lee began promoting "constitutional reform" in 1990. He argued that drafting a new constitution was legally infeasible and recognized that the National Assembly’s role in electing the president was a product of historical evolution. After six rounds of constitutional amendments, Taiwan achieved its first direct presidential election in 1996.

Renowned political scientist Samuel Huntington praised Lee’s democratic reforms as a model of the Third Wave of Democratization, calling it a “Quiet Revolution” due to the absence of violence and bloodshed.

A Journey to American Democracy:
President Lee once advised me: “If you ever go to the U.S., visit Boston and Philadelphia—those places nurtured the elite minds that birthed the American nation.” He said America’s democracy greatly inspired him.

Fig 2: Statue of Samuel Adams in Boston

In front of the three-story red brick "Faneuil Hall" in Boston, Massachusetts, stands a statue of Samuel Adams (1722–1803), a founding father of the United States. Many visitors take photos there. Samuel Adams graduated from Harvard College in 1740 at age 18 and earned his master’s degree at 21 in 1743—clearly not a “repeat test taker.” In college, he developed a keen interest in "political philosophy," especially natural rights and popular sovereignty. His master’s thesis explored the relationship between natural law and political authority. His ideas deeply influenced his cousin John Adams (1735–1826), who became the second President of the United States.

Fig 3: The Adams Cousins – Founding Fathers of the U.S.

Samuel Adams served as a member of the Massachusetts legislature, a delegate to the Continental Congress, and later as governor of Massachusetts. He was a key organizer of "the Boston Tea Party" in 1773, a pivotal protest against British taxation policies. The statue stands in a place known as the “Cradle of Liberty,” where he once gave speeches, organized meetings, and rallied citizens against British rule. It symbolizes his role as a guardian of freedom and democracy, reminding future generations to cherish hard-won independence and civil rights.

The statue’s pose—with arms crossed and a stern, resolute expression—epitomizes the American spirit of freedom. It stands as a landmark of unwavering commitment to justice and liberty. As a site of many independence-era speeches and gatherings, it is more than just a memorial to a historical figure—it represents an enduring belief in the pursuit of freedom. This location witnessed and nurtured many pivotal events in the American Revolution, earning its reputation as the “Heart of the Revolution.”

On July 4, 1776, 56 delegates from 13 American colonies signed "the Declaration of Independence," formally breaking away from British rule. The main drafter was Thomas Jefferson (1743–1826), assisted by Benjamin Franklin (1706–1790), John Adams, and others.

At that time, there was no formal constitution and no office of the "President"; the government operated as a loose confederation under "the Articles of Confederation."

By 1787, it became evident that the Articles were insufficient for effective governance, so the Philadelphia Constitutional Convention was convened. The result was the drafting of "the U.S. Constitution," establishing a tripartite system of government: legislative, executive, and judicial branches. Under this framework, the presidency was officially created, assigning the president as the chief executive, commander-in-chief, and the chief foreign representative.

In 1788, the United States held its first presidential election, and George Washington (1732–1799) was unanimously elected. He assumed office in 1789, officially launching the federal system of government. In 1797, John Adams succeeded him as the second president. As of January 2025, Donald Trump has assumed office as the 47th President of the United States.

Fig 4: Freedom Trail Marker

In short, Boston is considered one of the birthplaces of the American Revolution and is known as the "Cradle of Liberty." Walking the Freedom Trail offers an immersive journey through historic revolutionary sites—including statues, plaques, a symbolic donkey sculpture, and a storm drain cover marking the Boston Massacre of March 5, 1770. These sites reflect the American people's struggle for liberty and just governance.

Philadelphia is the birthplace of the nation, where many pivotal founding events occurred. On July 4, 1776, delegates signed “the Declaration of Independence” at Independence Hall, officially declaring the United States’ independence. In 1787, the same hall hosted the signing of the U.S. Constitution, which established the separation of powers and a democratic framework.

Fig 5: Enthusiastic Guide Explaining the Liberty Bell in Philadelphia

The Constitution is the foundational legal document of the United States. Though drafted in 1787, it is considered "a living document," continuously updated and refined through amendments to reflect evolving societal and political needs. These amendments are frequently referenced in legal and cultural discussions as core justifications.

Likewise, President Lee Teng-Hui began pursuing “constitutional reform” upon assuming office as the eighth president in 1990, aiming to build a more democratic and open society.

Fig 6: Lee Teng-Hui Elected as 8th President of the Republic of China (1990)

Reflections on the Recall Movement

The ancient Chinese saying goes: “When everyone knows beauty as beauty, there is already ugliness. When everyone knows good as good, there is already evil.” This illustrates how all value judgments exist only in contrast to their opposites.

On July 26, 2025, Taiwan held a mass recall vote targeting 24 legislators and 1 city mayor. All 25 recall efforts failed, marking a symbolic end to a yearlong, emotionally charged political confrontation.

Rather than a simple defeat, it became a moment for collective reflection on Taiwan’s democratic culture.

The recall mechanism was originally designed to check power and reflect public will, but when used as a tool for political revenge or nationwide mobilization-style struggle, it deviates from its constitutional purpose.

The complete failure of all 25 recall attempts reflects the public’s expectation for procedural justice and stable governance—not all dissatisfaction should result in recalls, especially when there is no significant misconduct and the official is still early in their term.

Ancient sages long recognized the paradox of polarized thinking: when political discourse is reduced to “I’m right, you’re wrong,” society becomes divided.

If a recall campaign becomes "a zero-sum war" between blue and green factions, it ceases to be a dialogue on policies or accountability—it becomes a manifestation of a culture of political struggle.

This wave of recalls should serve as a wake-up call: if Taiwan continues to tolerate labeling, hate-based mobilization, or settling political scores, then true dialogue becomes impossible, and democracy risks becoming hollow.

Though the recall failed, it exposed a critical flaw in Taiwanese politics: "Confrontation has replaced dialogue, and struggle has overridden governance." Only by returning to the original purpose of democratic institutions, learning to tolerate dissent, and fostering a culture of public discussion, can Taiwan truly mature, moving from chaos toward progress.

Promoting High-Quality Consciousness

In his 1994 book "Managing a Great Taiwan," President Lee Teng-Hui emphasized that "cooperation within competition" and "sharing within cooperation."

Even when dealing with opposition parties, he believed in governing together. He understood that “Taiwan needs a politics of consensus, not a politics of confrontation.” This requires wisdom and magnanimity.

President Lee once said: “Only with high-quality consciousness can there be consensus.” With a spirit of inclusiveness, he embraced dissenting views and allowed society to naturally find "balance."

If today’s political leaders and civil society could rise to that level—focusing on how to improve Taiwan and improve people’s lives, rather than endlessly battling each other—then even a failed recall movement need not be meaningless.

He emphasized: “Cultural development is the foundation of psychological and spiritual development.” (Lee Teng-Hui, 1994:16) If our foundation is sound, we will not fear any adversity or impact; instead of defeating us, adversity and impact will only further inspire our courage, fighting spirit, and perseverance. The crucial issue is that every person in the nation should possess profound and noble cultural cultivation. From this cultivation arises the capacity for lofty ideals and a scientific spirit in conducting affairs—this is truly remarkable.

With a refined culture comes a derived spirit that forms a “high-quality consciousness,” which not only enables the creation of great material achievements but also builds an indomitable psychological foundation. In fact, we possess a profound and far-reaching cultural heritage, and we are among the most outstanding peoples in the world. As long as we awaken, remain vigilant, strengthen and promote the spirit of our traditional culture, while also being open to learning from others’ strengths, we can surely catch up with—even surpass—any superpower in the world.

Vision

In 2010, over the course of a year, I had multiple discussions with former President Lee Teng-hui about the concept of an “Intelligent Industry.” I shared with him the APEC best-practice model "Global Channel–TES," which had the potential to generate $12.5 billion USD in profits. He asked,

“If your TES invention can yield USD 12.5 billion in profit, what’s the one thing you most want to do?”

I answered, “To bring prosperity to Taiwan (Rich Taiwan).”

President Lee then responded, “I really don’t understand what those young (successors) people are doing. Do you have any ideas for improvement?”

I replied, “To cultivate 71 high-quality talents to enter politics!” This would be done through the Economic Institute (EI)—an initiative we once proposed at APEC to train outstanding youth.

President Lee spent his life emphasizing Taiwan's "subjectivity," particularly the capacity of its people to govern themselves. What concerned him was not just election outcomes, but whether the next generation possessed the ability, vision, and maturity to lead Taiwan toward a prosperous and peaceful future.

My proposal—to begin with industrial upgrading and have elite talents enter politics to implement reform—directly addressed his expectations. He smiled and said, “Now this is really how to manage a great Taiwan!”

Fig 7: U.S. Founding Father Benjamin Franklin

In 1749, Benjamin Franklin published his influential Proposals Relating to "the Education of Youth in Pennsylvania," calling upon local gentry to co-fund an educational institution. That same year, a school board was formed.

By 1751, the Academy and Charitable School of the Province of Pennsylvania opened its doors to students from diverse social classes, from nobility to working families. This was the first nonsectarian institution of higher learning in the United States.

By 1755, it had obtained its college charter. Its curriculum emphasized practical knowledge and was taught in modern language (English), promoting subjects such as mathematics, science, commerce, history, geography, agriculture, and art. This school would later become the University of Pennsylvania.

Both the 45th and 47th U.S. President Donald Trump graduated from its Wharton School of Business.

President Lee was particularly enthusiastic when talking about education. He mentioned "Matsushita Institute of Government and Management" in Japan—a program designed to train outstanding youth to lead social reform.

It offered a three-year, tuition-free curriculum, with a monthly stipend of 200,000 yen (approx. NTD 40,000 per month).

At NTD 40,000 per month, the cost per student would be NT$480,000 annually. Over three years, NTD 1.44 million. Add learning expenses and scholarships, totaling NT$1.56 million per person—or about NT$3 million per person in total.

To train 71 talent people, the cost would be NTD 213 million—just a fraction (less than 10%) of the projected profit from our industrial innovations.

Had we invested in this mission to develop quality leadership back then, perhaps we could have prevented the cartel plague that later swept through Taiwan.

Taiwan — the Ocean Age’s Heart

Back in 1998, during a presentation at the APEC podium, we projected a slide featuring Taiwan prominently at the center, surrounded by various nations—titled “Taiwan — the Heart of the Ocean Age.” It highlighted that the 21st century is the era of “2V”—small in volume, yet capable of creating high value due to high speed. This coincided with former President Lee Teng-Hui’s concept of the “New Central Plain.” He once said:

“Fifty-six exceptional talents can found a nation like the United States; with seventy-one, Taiwan can surely become the center of the Oceanic Century.”

Fig 8: Taiwan — The Heart of the Oceanic Century

Former President Lee had a unique perspective on the “New Central Plain.” He believed that history does not leap forward abruptly but is the result of long-term, accumulated development. Taiwan, situated at the crossroads of modern world history, has unknowingly become the most natural meeting point for East-West cultures and for continental and maritime civilizations. It offers a rich and diverse stimulus for the regeneration of Chinese culture.

Taiwan indeed possesses both the historical and geographical qualifications to pioneer a new Chinese culture and become the “New Central Plain.” Without the challenge and competition that Taiwan brings, one can imagine that the development of a single nation’s history or Chinese civilization would inevitably be “centered around one authority”—lacking the impetus for accelerated transformation and innovation. For the future of Chinese culture, we naturally bear the responsibility of protecting Taiwan, so that it can continue to guide the course of Chinese history. (Lee Teng-hui, 1994: p.467)

We received a divine revelation in 1986, foreseeing the looming global unemployment crisis, and in response, we specially invented the "New Tech-Economic System (TES)" in attaining of the mission goal. After eleven years of dedicated effort, we presented our research achievements at the 1997 APEC in Vancouver, offering a beacon of hope for the countries devastated by the 1997 Asian Financial Crisis.

Fig 9: New Tech-Economic System (TES) gained E-Commerce Bill

As a result, we were invited to serve as a speaker at APEC 1998. One of the keynote presentations was titled "Taiwan—The Ocean Age’s Heart." It was officially screened on the APEC stage for over ten minutes. Speaker Linda Din, President of K-Horn Science Inc. explained that how TES, as a "Multilateral Trading System" open to participation by multiple nations, could serve as a pathway into the global market. She illustrated an economic revival model that made it possible to “earn global income from home,” thereby winning support for the "E-Commerce Bill," opening a door to the global market for all participating economies.

Fig 10: Linda Din presenting a way for the economic stimulus on the APEC stage

Through our continuous efforts at APEC from 1997 to 2009, the world ultimately began revolving around TES. Billions of enterprises in both traditional and high-tech industries now rely daily on Taiwan’s contributions. Former President Lee Teng-Hui commended us for devoting over a decade to APEC and for initiating numerous bills and policies that benefit the world. He said, “It’s because of non-governmental contributors like you that Taiwan can shine on the world stage.”

Then, all of a sudden, his expression grew solemn, and he began speaking about the real reason he chose not to attend APEC Summit.

He recalled the 1993 APEC meeting in Seattle, where U.S. President Bill Clinton convened the first-ever Leaders’ Meeting and established the practice of annual gatherings among economic leaders. In February 1994, President Lee visited Indonesian President Suharto. By March, they invited him to the upcoming APEC Leaders’ Meeting scheduled for November 1994 in Bogor, Indonesia.

Regrettably, on March 31, twenty-four Taiwanese citizens were robbed and burned to death in a boat cabin while traveling at Thousand Island Lake. The Chinese Communist Party took advantage of the tragedy, using Taiwan’s eagerness to retrieve the victims’ bodies as leverage to demand:“Lee Teng-hui must not attend the APEC Leaders’ Meeting in Bogor.”

President Lee said, “Taiwan’s future is incredibly bright. But for Taiwan to move forward, much must be endured. Without patience in small matters, grand plans may unravel. That’s why I had to choose to step back.” Take one step back, and the sea opens wide.

He recalled the 1993 APEC meeting in Seattle, where U.S. President Bill Clinton convened the first-ever Leaders’ Meeting and established the practice of annual gatherings among economic leaders. In February 1994, President Lee visited Indonesian President Suharto. By March, they invited him to the upcoming APEC Leaders’ Meeting scheduled for November 1994 in Bogor, Indonesia.

Regrettably, on March 31, twenty-four Taiwanese citizens were robbed and burned to death in a boat cabin while traveling at Thousand Island Lake. The Chinese Communist Party took advantage of the tragedy, using Taiwan’s eagerness to retrieve the victims’ bodies as leverage to demand:“Lee Teng-Hui must not attend the APEC Leaders’ Meeting in Bogor.”

President Lee said, “Taiwan’s future is incredibly bright. But for Taiwan to move forward, much must be endured. Without patience in small matters, grand plans may unravel. That’s why I had to choose to step back.” Take one step back, and the sea opens wide.

Conclusion:

Society is not formed through the law of the jungle or the theory of evolution's survival of the fittest. Rather, it is shaped by capable individuals who, with a heart of "loving others as yourself," fulfill their social responsibility by helping the disadvantaged, actively eliminating inferior mindsets and unfair competition. This paves the way for a culture of quality and integrity to become mainstream. The foremost trait of outstanding individuals is "a compassionate heart." When society is filled with such quality-conscious values, a spirit of selfless service will flourish, justice will shine like the noonday sun, and evil will melt away like wax in fire. Only then can society develop positively in "a state of true balance."

In summary, former President Lee Teng-Hui highly affirmed a reform strategy based on human-centered systems. My vision resonated with him because it had three key elements:

1. Replacing partisan conflict with talent-driven politics to elevate quality consciousness;

2. Integrating industry and governance—not merely reforming politics, but synchronizing technological innovation with institutional upgrades;

3. Viewing education and talent cultivation as a form of long-term social investment, in line with the ideals of Socially Responsible Investment (SRI).

If Taiwan is to truly escape the dark web of political-business cartels, it must be led by strategic reformers—much like Franklin and Adams, who cultivated quality leaders to carry out structural transformation. This is the most pragmatic and viable path forward for the new generation of political leadership. From Managing a Great Taiwan to Prospering Taiwan, the dream will one day come true.

References

Lee Teng-Hui, (1994). Managing A Greater Taiwan. Taipei: Yuan‑liu.

Peter Li-Chang Kuo, the author created Taiwan's Precision Industry in his early years. Peter was a representative of the APEC CEO Summit and an expert in the third sector. He advocated "anti-corruption (AC)/cashless/e-commerce (E-Com)/ICT/IPR/IIA-TES / Micro-Business (MB)…and etc." to win the international bills and regulations.

【Copyrights reserved by Li-Chang Kuo & K-Horn Science Inc.】

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