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Bad day at the office

Lord Acton's maxim, that power corrupts and absolute power corrupts absolutely, has just been proven true again in Taiwan. Five years ago, the ruling Democratic Progressive Party (DPP) won power on a campaign promise to stamp out corruption by the Kuomintang, which had ruled since the 1940s.

In the short space of five years, the DPP has changed from a party known for being clean to a party that faces many allegations of corruption. So much so, in fact, that in local elections last weekend, the party was swamped by the KMT, now under the chairmanship of Taipei mayor Ma Ying-jeou.

These results are likely to put pressure on President Chen Shui-bian to soften his anti-mainland stance and help lessen cross-strait tensions. They have been high ever since the pro-independence Mr Chen won the presidency in 2000.

During the weeks leading up to Saturday's elections, Mr Chen, as is his wont, made pro-independence speeches while campaigning for DPP candidates. The fact that his party won only six of 23 mayoral and county magistrate posts - while the KMT and its allies won the rest - suggests that the China card the president likes to play is losing its appeal for Taiwanese voters.

Analysts believe the DPP did poorly because the party's image has been badly tarnished. Scandals include allegations of corruption in a subway project in Kaohsiung involving the president's former deputy chief of staff, Chen Che-nan, and 17 others. They were indicted recently on charges of influence peddling, corruption, fraud and breach of trust. The outcome is seen by many as a vote of no confidence in Mr Chen. In the latest survey by the United Daily News, his approval rating was at its lowest point yet - 21 per cent - having plummeted from 79 per cent in June 2000, when he first took office.

Before the elections, the president had said that he would have to tighten his policies on the mainland if his party lost. However, now Mr Chen will surely face pressure to relax restrictions on interchanges across the Taiwan Strait. The president has alienated the business community, both local and foreign, with anti-mainland policies that have hurt Taiwan's economic prospects.

Even during the campaign, he asserted that cross-strait relations should not be based only on economic factors, and warned of the risk of doing business on the mainland.

Even the pro-independence Taiwan News has called for the government to respond to the situation. It noted that a poll last week showed 47.8 per cent of foreign companies were dissatisfied with the government's handling of foreign investment, and 'topping their concerns was direct links with [mainland] China ...'

DPP chairman Su Tseng-chang has resigned to take responsibility for the election fiasco, and Premier Frank Hsieh Chang-ting has also offered his resignation. Only a few days ago, the two were considered frontrunners to be the DPP's presidential candidate in 2008, when Mr Chen will have to step down. Now, both men have suffered a severe setback. On the other hand Mr Ma, the KMT chairman, is emerging as the biggest winner.

Beijing's official China Daily summed up the views of analysts both in Taiwan and the mainland by saying: 'Chen Shui-bian and his ruling [DPP] face mounting pressure to improve ties with the mainland following the crushing defeat in weekend local elections.'

Beijing has been hoping for such a development for the past five years. No doubt Mr Chen, albeit unwillingly, will be forced to adopt friendlier policies towards the mainland in the last two years of his presidency. Beijing would be wise not to press its advantage too far in view of the changed circumstances. After all, the outcome of the 2008 presidential election still hangs in the balance.

Frank Ching is a Hong Kong-based writer and commentator

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