Since Taiwan formed diplomatic relations with Macedonia a year ago today, political stability in the Balkan states has both posed a challenge for bilateral relations and hindered economic development plans.
But despite reassurances from officials on both sides that bilateral cooperation is "back on track," Taiwan appears to be facing a string of problems implementing its promise of recreating the "Taiwan Miracle" in Macedonia.
In February, almost immediately after the establishment of relations, came the Kosovo crisis and the subsequent influx of over 240,000 refugees into a state with a population of just two million people.
PHOTO: CHANG CHIA-MING, LIBERTY TIMES
"The Kosovo crisis posed difficulties for the implementation of cooperation that has been agreed upon by both sides," said Verka Modanu, Macedonia's envoy in Taiwan.
"We had just established formal relations at that time and didn't have time to establish the proper diplomatic channels when the crisis started."
The security of the Balkan state was compromised when China vetoed the extension of the UN Preventative Deployment Force (UNPREDEP) in reaction to Skopje's new relations with Taiwan.
UNPRDEP withdrew from Macedonia in March, and was replaced by a NATO peacekeeping force.
The UN's trade sanctions against Serbia also sent shockwaves through Macedonia's economy, as the rogue state was one of the Macedonia's biggest export markets.
Then, in November, came Macedonia's presidential election -- an event that tested the fragile government coalition, led by the Internal Macedonian Revolutionary Organization-Democratic Party of Macedonian National Unity (VMRO-DPMNE).
The government coalition was fractured when the three political parties failed to back a joint candidate for the presidential race -- a factor that analysts said contributed to large support for the opposition candidate from the Social Democratic Union of Macedonia (SDSM).
Vasil Tupurkovski, the current vice prime minister and the head of the Democratic Alternative (DA), had claimed that VMRO-DPMNE -- President Boris Trajkovski's party -- tried to gain political capital by blocking investment plans from Taiwan.
Tupurkovski is the architect of relations with Taiwan, and oversees most of the bilateral cooperation plans.
The split in the coalition led to a closely contested race between Trajkovski and socialist candidate Tito Petkovski.
President Trajkovski's victory over his socialist opponent was particularly important for Taiwan because SDSM opposes diplomatic ties with Taiwan and its now retired president had refused to receive the credentials that would grant full diplomatic status to Taiwan's envoy to Macedonia.
With the Cabinet reshuffle of Macedonia's government in December, officials on both sides were quick to assure political stability in the governing coalition.
"When Tupurkovski visited Taiwan last week, he assured us that he has full support of the coalition government to push ahead with bilateral cooperation plans," said Liu Hsiang-pui (劉祥璞), director of the Ministry of Foreign Affairs' department of European affairs.
With the governing coalition holding 73 seats in the 120-member parliament, Modanu said the government has a stable mandate.
"It's unlikely a parliamentary election is going to be held before the scheduled one in 2002. It would take a two-thirds majority to pass a vote of no-confidence," she said.
But despite promises by the Macedonian government to implement bilateral cooperation projects, Taiwan is faced with other institutional and cultural challenges in creating an economic miracle in the Balkan state.
"Both sides are proceeding to the best of our ability," said Loh I-cheng (
There are challenges in how to implement a free market economy in a country where people are accustomed to a socialist system and the question is how to attract Taiwan businesses to invest there, said government officials involved in investment projects with Macedonia.
"In Macedonia, they have yet to understand the `one-window concept' (
A "one-window" system would streamline bureaucratic procedures.
"Everyone pays lip service to the free market concept but when it comes to practice, one window disappears and it becomes many windows," he said.
Another Taiwanese investment specialist stationed in Macedonia expressed the same frustration to the Taipei Times.
"You have to be very patient in carrying out your work here and get used to the bureaucratic procedures," he said.
"It's also difficult to attract Taiwan companies to invest here because of the distance and the language barriers," he added.
So far, two companies -- electronics and woodworks firms -- have signed contracts to invest in the Taiwan-financed Economic Free Zone outside Skopje.
Taipei has promised US$200 million in investment from Taiwanese companies.
"You can lead a horse to water but whether it drinks or not -- is another question," said Liu.
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