The US House Financial Services Committee recently passed the Taiwan Non-Discrimination Act, moving it forward to its second and third readings before it proceeds to the Senate.
The bill, introduced last month by Republican Representative Young Kim and her Democratic counterpart Al Green, calls for the US government to support Taiwan’s admission into the IMF as a member, and participate in the financial institution’s regular surveillance activities relating to its economic and financial policies.
The bipartisan bill also urges the US government to support IMF employment opportunities for Taiwanese.
Before the bill passed, Kim said that the US had long supported Taiwan’s inclusion in international organizations and advocated for a mechanism to ensure its voice is heard when full membership is not possible.
This is the first step for Taiwan to join the global financial community. Becoming a member of the IMF would not only be a breakthrough for the nation’s international participation, but would also secure its place in the global financial safety net — boosting Taiwan’s economic resilience.
The bill mandates the US representative to the IMF to advocate for Taiwan’s admission and vote in its favor, while requiring the US secretary of the treasury to report annually to the US Congress on the progress.
While the IMF operates by consensus, it does not follow the “one country, one vote” principle used by many international organizations. Instead, it employs a weighted-majority voting system, where a member’s voting power is determined by its financial contribution.
Each IMF member receives a basic vote along with additional votes based on its quota, which determines its voting weight. Specifically, a country gains one vote for every 100,000 special drawing rights of its quota, meaning voting weight increases proportionally with quota size.
The US holds the largest voting share in the IMF at 17 percent, followed by Japan, China, Germany and France. The Western bloc led by the US maintains a dominant influence within the organization. This advantage allowed Kosovo to become a member despite opposition from China and Russia, which had blocked its UN membership.
IMF members must contribute their quota to ensure access to financial support in times of need. Gaining access to the organization’s “rainy day fund” — a mutual assistance mechanism — would allow Taiwan to seek aid during natural disasters or economic crises.
Aid from the IMF could also reassure international investors and bring in more foreign capital, which would strengthening economic resilience and security.
Kim visited Taiwan last year. While the bill passed the US House last year, it did not advance in the Senate. This year, it was reintroduced and swiftly approved by the House Financial Services Committee at the beginning of the congressional session. It is a good start.
Honda Chen is a senior researcher at the Taiwan Academy of Banking and Finance.
Translated by Fion Khan
Taiwan’s fall would be “a disaster for American interests,” US President Donald Trump’s nominee for undersecretary of defense for policy Elbridge Colby said at his Senate confirmation hearing on Tuesday last week, as he warned of the “dramatic deterioration of military balance” in the western Pacific. The Republic of China (Taiwan) is indeed facing a unique and acute threat from the Chinese Communist Party’s rising military adventurism, which is why Taiwan has been bolstering its defenses. As US Senator Tom Cotton rightly pointed out in the same hearing, “[although] Taiwan’s defense spending is still inadequate ... [it] has been trending upwards
The first Donald Trump term was a boon for Taiwan. The administration regularized the arms sales process and enhanced bilateral ties. Taipei will not be so fortunate the second time around. Given recent events, Taiwan must proceed with the assumption that it cannot count on the United States to defend it — diplomatically or militarily — during the next four years. Early indications suggested otherwise. The nomination of Marco Rubio as US Secretary of State and the appointment of Mike Waltz as the national security advisor, both of whom have expressed full-throated support for Taiwan in the past, raised hopes that
There is nothing the Chinese Nationalist Party (KMT) could do to stop the tsunami-like mass recall campaign. KMT Chairman Eric Chu (朱立倫) reportedly said the party does not exclude the option of conditionally proposing a no-confidence vote against the premier, which the party later denied. Did an “actuary” like Chu finally come around to thinking it should get tough with the ruling party? The KMT says the Democratic Progressive Party (DPP) is leading a minority government with only a 40 percent share of the vote. It has said that the DPP is out of touch with the electorate, has proposed a bloated
In an eloquently written piece published on Sunday, French-Taiwanese education and policy consultant Ninon Godefroy presents an interesting take on the Taiwanese character, as viewed from the eyes of an — at least partial — outsider. She muses that the non-assuming and quiet efficiency of a particularly Taiwanese approach to life and work is behind the global success stories of two very different Taiwanese institutions: Din Tai Fung and Taiwan Semiconductor Manufacturing Co (TSMC). Godefroy said that it is this “humble” approach that endears the nation to visitors, over and above any big ticket attractions that other countries may have
RSS