Dr Eric S. Maskin: Economy Exchange Brings “Win-Win” Situation for Both Sides

President-elect Ma Ying-jeou and Prof. Eric S. Maskin, the 2007 Nobelist in Economics, exchanged their thoughts on several issues at the “Harvard Elites Forum” held by Economic Daily News, Chung-Hua Institution for Economic Research and Allianz Global Investor yesterday (April 18). Ma Ying-jeou asked Prof. Maskin how to handle the touchy cross-strait relation. The two Harvard graduates both agreed that the first constructive step is to drop off the “One China” issue from the negotiation table; Dr. Eric S. Maskin optimistically said that after the intensive cross-strait economic exchange, both sides can surely find out the “win-win” solution.

Dr. Eric S. Maskin Talked about Mechanism Design

Economic Daily News, together with Chung-Hua Institution for Economic Research and Allianz Global Investor, held the forum yesterday and invited Dr. Eric S. Maskin to deliver a speech. In that afternoon, Ma Ying-jeou asked Prof. Maskin about the cross-strait relation and the lifting of frozen oil price at the “Harvard Elites Forum”. Ma was well-prepared during that 45-minute forum with Prof. Maskin; he kept on asking questions, especially on how to apply the Mechanism Design Theory to improve cross-strait relation and what his perspective about vice President Vincent Siew’s attendance at the Bo-ao Forum was.

Ma Ying-jeou said that the cross-strait relation is not only important and touchy for both sides but also essential for neighboring Southeast Asia countries. Now it is neither possible for both sides to deny nor to acknowledge the existence of each other, so both sides should set aside the “One China” dispute and place more urgent issues on the top of the agenda, therefore he suggested the “Mutual Non-denial” idea and said it would be the best solution. Dr. Eric S. Maskin replied by saying that Ma’s suggestion is the best policy.

Dr. Eric S. Maskin said that dropping the “One China” issue off the table is the first constructive step, and this will benefit both sides. He also said that the cross-strait economic exchange is not a zero-sum game, and if Taiwan increases its economic exchange with mainland China, one day mainland China will have no incentive to squeeze out Taiwan’s international space. Dr. Eric S. Maskin said also that both sides will surely find out a win-win solution, and Ma agreed with him.

Ma Reiterated the “Three Nos” and “Three Yeses”

Ma Ying-jeou also took the initiative to mention his cross-strait Three Nos and Three Yeses policies during the dialogue. While the former policy includes no negotiation with China on unification, no rush for “Taiwan Independence” and no military means to change the status quo; the latter policy puts peace, prosperity and dignity as the basis for enhancing cross-strait and foreign ties. Ma said that to achieve prosperity, he must first remove the obstacles for cross-strait transportation, exchange and trade, and the new government is set to implement the direct flight charter and other related deregulation policies in July.

Second, in order to achieve the goal of national safety, Ma Ying-jeou hoped that he can sign the Peace Accord with mainland China after taking office at May 20 so that the both sides can build mutual trusts and avoid animosity that leads to arm conflicts.

As for national dignity, Ma Ying-jeou said that after being dragged by the cross-strait political animosity, the number of Taiwan’s diplomatic allies has shrank from 28 to 23, but mainland China should not ignore the existence of Taiwan and shall respect Taiwan’s international space. Taiwan would win national dignity if both sides can reach this stage. Ma also said that Taiwan should be practical and coexist with mainland China peacefully, for what Taiwan wants are trade and investment.