Taiwan: Country Outlook

DOMESTIC POLITICS: The Democratic Progressive Party (DPP) is the largest party in the legislature, but it lacks a majority even with the support of its allies in the Taiwan Solidarity Union (TSU). As a result, to get legislation enacted, the president, Chen shui-bian, who is also the leader of the DPP, must continue to rely on his government's ability to co-opt members of the opposition bloc, comprising the Kuomintang (KMT, or Nationalists) and the People First Party (PFP). As the KMT and the PFP will not want Mr Chen's government to appear an effective policymaking body ahead of the presidential election scheduled to take place in March 2004, to be followed by the legislative yuan (parliament) election later in the same year, the possibility of cross-party co-operation during the remainder of 2003 and into 2004 is low.…