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How to Improve Asian Labor Standards: A Case Study

A CNP Conversation with Taiwan's Minister of Labor, Dr. Ying-Yuan Lee

April 17, 2007

With India and China attempting to bring more than two billion people into the global economy, how Asian nations make that transition is critical not only to local economic development but to issues ranging from international security to environmental sustainability.

Here in Washington, one aspect of the integration of Asia into the global economy has stood out as a lightning rod: labor standards. Concern about low-price imports, outsourcing, human rights standards, democratization and the rule of law all converge on this one issue.

Understanding this, CNP held an insightful event featuring Taiwan's Minister of Labor, Dr. Ying-Yuan Lee. Taiwan, holding its first democratic elections in 1996 and its first transfer of power in 2000, is a real case study in how political evolution can lead to labor sector reforms.

Minister Lee explained how the course of democratization in Taipei tracked the improvement of labor standards in Taiwan. While much remains to be done, much progress has been made: the work week is down to 42 hours, an employment insurance program is in place, gender equity legislation is in place, and the state has created a national labor pension system.

Taiwan, of course, does not have the challenges of scale that face India and China. But its success so far provides an excellent reminder that democratic reform can be a real catalyst for improving labor standards in the Asian context.

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