The March 2000 presidential election was the first peaceful transfer of political power in the history of the ROC. Chen Shui-Bian was the new president and the Democratic Progressive Party became the ruling party. After inauguration, President Chen declared various projects of reinventing government. However, the tension between political parties hinders the progress of these projects. In other words, President Chen’s ideas and policies are not fully institutionalized. In comparison with Lee Deng-Huei’s presidency, President Chen’s agenda of reinventing government is not so revolutionary and basically focus on the stability of domestic environment. From the historic structural approach,this paper develop two assumptions to examine the effects of the progress of reinventing government agenda after the transfer of power in Taiwan. I first assume the reinventing government of a certain regime would be constrained by its political situation. Secondly, economic decline and social tensions inhibit the reinventing government agenda of President Chen.