What Really Counts

President Chen Shui-bian (third from left) and other leaders at the first Taiwan-Pacific Allies Summit. (Courtesy of Office of the President)

Publication Date：12/01/2006
By line：JIM HWANG

Taiwan denounces dollar diplomacy and consolidates natural affinities with its Pacific allies.

China's bid for the diplomatic allegiance of Pacific nations has taken a decidedly challenging turn recently. In April this year, Chinese Premier Wen Jiabao visited the South Pacific for talks with Beijing's allies in the region and reportedly promised US$375 million worth of "cooperative programs." Taiwan's allies were excluded from the talks, sending a clear signal that if they want a share of Beijing's largesse they need to ditch Taiwan. "The US has been cutting back its aid to the region, so countries there need to find new resources," says Koo Kuan-min, former presidential adviser and a major investor in the Marshal Islands' fishing industry. "It's a good chance for China to step in, which it has done, and Taiwan needs to be cautious."

In September 2006, ROC Air Force One flew President Chen and a delegation to Koror, Palau, for the first Taiwan-Pacific Allies Summit with the leaders of Taiwan's six allies in the region: Kiribati, the Marshall Islands, Nauru, Palau, the Solomon Islands and Tuvalu. Together, these nations occupy a land area of 29,000 square kilometers and have a population of 680,000, with only about 150 Taiwanese immigrants. Though small in many ways, they account for a quarter of those countries having formal diplomatic ties with Taiwan.

Instead of dishing out dollars, Taiwan signed the Palau Declaration with its Pacific allies, agreeing to work together to pursue economic growth, sustainable development, good governance and security. In addition to expanding existing cooperation in the areas of economics, health and technology, President Chen also proposed a law enforcement training and cooperation program to detect and prevent crime. Also, in the light of new genetic evidence that links Taiwan's aborigines to Pacific Austronesians, it was proposed that an Austronesian forum and institutions should be set up for the research and preservation of the many-faceted ocean-faring culture.

This Is Not a Race

Given that China is throwing big money around in the region and the Taiwanese public's negative perception of dollar diplomacy, local media questioned how much taxpayers' money has been invested in these projects but have yet to receive a clear answer. "This is not a race with other nations," President Chen told the media during the trip. "What we want is a long-term mechanism for developing partnerships between Taiwan and its Pacific allies."

There have been allegations that Taiwan's allegiance strategy in the Pacific amounts to little more than Beijing's dollar diplomacy. Taipei, for example, paid for the construction of a sports complex in Kiribati and rescued Nauru's one-plane flag carrier from insolvency. There are also banking and finance projects, such as an US$800,000 revolving fund to help the Marshall Islands government establish a micro credit scheme. "Money talks in many diplomatic situations, but it should be spent in the right place at the right time," says opposition Kuomintang legislator Lin Yu-fang. "We should be very careful, especially with countries that have a reputation for switching diplomatic recognition between Taipei and Beijing for handsome aid packages."

Koo Kuan-min, who also attended the summit, thinks that it would be much more constructive if cooperative projects could be provided in another way. During the summit, Koo witnessed the allies talking about development projects, listing how much money they would require this year and how much next. He thinks that the Pacific nations have ample resources of their own in the ocean that surrounds them. With a little help, these can be easily turned into the cash needed to fuel national development projects. So instead of financing all kinds of programs, Koo thinks it would be more practical for Taiwan to help its allies become self-reliant.

Then Ministry of Foreign Affairs spokesman Michel Lu said in a September 5 press conference that the programs were carefully figured out before the summit and were based on the different needs of individual allies. Detailed action plans will be mapped out with the allies, which will accord with Taiwan's foreign aid budget. "The amount we can spend on total foreign aid and cooperation is about NT$14 billion (US$424 million) a year, so we can't compete with China," he said. "But the technology, experience and professional personnel we can offer are priceless."

The Buck Stops Here

Lin Cheng-wei, National Security Council advisor and delegation member, thinks that the focus should be on the substance of programs rather than the cost. "We're not interested in dollar diplomacy," he told the media. "Our advantage is the quality of projects we can offer." Analyzing Taiwan's diplomatic strategy, Lin said that the government used to focus too much on support for sovereignty and tended to ignore what Taiwan could do for its allies. "What matters is not what we can get in return, but what we can do for them," he said.

Two areas in which Taiwan can help are medicine and health. In conjunction with the summit, Taiwan's Department of Health held the Pacific Health Forum. The forum undertook wide-ranging consultations and discussions with a mission to draw up concrete plans for cooperative medical care and public health programs. In fact, medical cooperation between Taiwan and its Pacific allies started in 2004 after the signing of a health declaration in Taipei. Physicians and medical administration personnel have since come to Taiwan for training programs.

Taiwan has also dispatched mobile medical missions to allies and friendly nations in the Pacific. These missions are organized by the Taiwan International Cooperation and Development Fund (TaiwanICDF), which oversees such international operations on behalf of the government. Working with hospitals and medical schools, the missions, which provide free medical services, also try to consolidate ties and exchanges with local health workers to help bolster their healthcare systems. Taiwan also plans to station physicians in these countries on a long-term basis.

Deep Roots

Chen Chi-fu, who practiced medicine in Africa for 13 years and now works for TaiwanICDF, thinks that the quality medical services that missions provide are not something that China can beat merely by spending money. "If diplomacy is like a tree, medical missions are like the roots which nurture the tree, make it grow and bear the fruit of friendship and respect," he says. "We've put down deep roots."

Agriculture and fisheries are also areas in which Taiwan has a lot of experience and success. Agricultural missions have been sent to all Taiwan's six Pacific allies, several of which were stationed there even before the establishment of formal diplomatic ties. The Palau mission, for example, was established in 1985, while diplomatic ties were formalized in 1999. Depending on the resources of individual countries, projects focus on animal husbandry, aquaculture or horticulture.

The mission in Tuvalu, for example, has helped set up a demonstration and commercial farm for vegetables and fruit. The purpose of the program is to increase local supply and reduce reliance on imports. There are also courses on production as well as management for farmers and officials of the local government. The technical mission in Kiribati has been sharing Taiwan's saltwater fish-rearing techniques with local farmers, assisting them in milkfish propagation and formula research to develop cheaper supplemental fish feed.

Taiwan expanded existing agricultural development projects at the summit to focus on product development and launch a Taiwan-Pacific forum on constructive fisheries partnerships. "We not only share the fruit of our cultivation with these nations' peoples, but we also transfer our technologies and know-how to them," said President Chen. "It's our hope that the spirit and developmental experience of Taiwan's agriculture can take root and flourish in every Pacific island nation."

While agriculture and fisheries are common concerns to the Pacific allies, Taiwan has also been seeking different development approaches for individual nations, depending on the resources available. In 2001, TaiwanICDF conducted research on Palau's potential for developing tourism, looking at Palau's resources, facilities and relevant regulations in order to formulate an action plan. Through promotional activities, Taiwanese visitors to Palau increased from 15,000 in 2002 to 28,000 in 2003 and 60,000 this year. Starting from 2005, the Taiwan technical mission there has been helping Palau develop agritourism. It introduced dendrobium, an orchid variety, to the island. Mission leader Hsu Ming-li says that the flower became so popular that not only farmers and agricultural officials but even Palau's first lady attended the training course the mission provides on how to grow them.

To some degree, these six Pacific allies are similar to Taiwan a few decades ago-a small island country without many natural resources-and this is exactly why they stand to benefit from the nation's experience. During the summit, President Chen noted that a major factor in Taiwan's development was assistance from the international community. "We are extremely grateful for all the assistance rendered to us in the past," he said. "Therefore, we are very happy to share our capital, technologies and developmental experience with our Pacific allies, and to be partners in mutual development, in order to enhance the prosperity of the Pacific region and the welfare of its peoples."

In the Pacific region, between Taiwan and its allies, money, it seems, does not always talk-simple friendship and the will to share count for much more.