New government in Taiwan could boost economy

Taiwan held legislative elections on Jan. 12th. The Kuomintang party won a landslide 81 seats out of a total of 113. Its opponents, the Democratic Progressive Party, came away with only 27 seats. Allies of the Kuomintang won an additional 5 seats. The 3/4 super-majority of the Kuomintang and its allies gives them the ability to pass more pro-growth economic policies, namely policies enabling closer economic ties with mainland China. In addition, the super-majority grants the power to recall the President of Taiwan and to change the constitution of Taiwan, if desired. Presidential elections will be held on March 22nd to determine the successor to Chen Hsui-Bian, a DPP party member. If Ma Ying-Jeou, the Kuomintang candidate, wins that election as well, Taiwan could really be set to receive a big boost to its economy. Chen Hsui-Bian has been pushing pro-independence policies, antagonizing mainland China, causing instability and severely damaging the economy of Taiwan.