While the Ministry of Foreign Affairs vowed not to engage in dollar diplomacy to compete with Beijing after Panama switched diplomatic recognition to China in June, events have shown that the situation is not as clear-cut as the ministry makes it out to be.
Yes, the ministry “avoided” direct diplomatic competition with China by simply conceding defeat in Panama’s case — but what else could Taipei have done? Even if it tried, it could never throw more money at Panama than China can. The issue has now shifted to the nation’s remaining allies, which it has maintained primarily through financial assistance and local development projects.
First there was Belize, whose media reported that Taiwan had late last month signed off on a NT$1.8 billion (US$59.4 million) aid package, with one-third consisting of grants. This led to speculation that even though the government has repeatedly vowed to end dollar diplomacy, it has continued to engage in it.
However, the ministry denied that assistance being offered to Belize was dollar diplomacy, saying that it was part of regular cooperation between two allies — which is apparently one-sided. If that is not dollar diplomacy, then what is?
On Thursday last week, the ministry said it was evaluating a request from Guatemala for assistance on the fourth phase of a highway project. The first three phases were carried out with engineering and financial assistance from Taiwan.
Belizean newspaper Amandala criticized Taipei, saying in an article titled “Belize got just US$60 million” that Taiwan was providing more aid to Guatemala than Belize. The article suggested that Belize should look into whether China wants to be friends. It even quoted Belizean Ministry of Foreign Affairs official Pat Andrews as saying: “We expect that we should not ... be treated any, any way [unlike] how Guatemala is treated. So we have taken that under consideration, too, and we will see how that goes.”
It is obvious that Taiwan is not winning any hearts by pouring money into the two countries. The article indicates that not only are the Belizean media and foreign ministry ungrateful for the money given to the country, they do not even think they need to show Taiwan respect. After all, it is a financial relationship.
Why should they be nice to Taiwan when much wealthier China looms? Taiwan seems to have been taken hostage by these small, often poor countries.
Should Taipei decline Guatemala’s request for assistance, it will definitely look to China — even without being prompted by Beijing — and might use China’s economic might as a bargaining chip. If Taiwan does not help enough, as Andrews seemed to indicate, it seems the result will be the same.
If Taiwan gives in to both countries’ demands, who is to say its other allies will not follow suit? In addition, if China really wanted to, it could sweep in and snatch both allies in an instant, rendering all that money wasted.
There is no winning scenario for Taiwan. The government needs to make a clear decision, because dollar diplomacy is a futile fight and there are many other ways for Taiwan to raise its international profile without wasting the nation’s resources.
If the government decides to continue down this route, it must inform the public while fully disclosing its plan. Even if it does not, its allies’ media will report on it anyway.
Asked about the possibility of Belize switching diplomatic recognition to China, Ministry of Foreign Affairs spokesperson Andrew Lee (李憲章) said that communication between Taiwan and Belize remained smooth and bilateral projects were proceeding as usual.
When Belize turns to China after being “hurt” over its neighbors getting more money, ministry officials will surely be just as “shocked” as they were when Panama changed recognition two months ago. Will they also accuse the Belizean government of “deceiving Taiwan until the last minute”?
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