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CHAPTER 6 CONCLUSION
“Dollar diplomacy” has for many years overshadowed the effectiveness of Taiwan’s foreign aid. Many scholars have equated Taiwan’s foreign aid to be simply foreign policy. The relationship between the two cannot be denied. However, it’s important to note that Taiwan’s foreign aid is delivered to a recipient country through different mechanisms -- one of these is via Taiwan’s International Cooperation and Development Fund. This institution manages around 15% of Taiwan’s ODA budget, it is annually audited by an external accounting firm and publishes its financial reports. This institution also gave this researcher access to certain documents on its foreign aid projects and the results in Central America and the researchers was able to interview Taiwan ICDF officials about Taiwan’s foreign aid in Central America.
This research has provided strong evidence that Taiwan ICDF development assistance has carried out successful projects in Central America such as Taiwanese guava. Even though the results for all the farmers was not the same, at least groups of people from impoverished Central American nations have been able to benefit from guava as a source of income. That can only be considered as success, as their quality of life has increased and they have the freedom to make use of their profits in the way they like. The guava project had specific objectives, this also proves Easterly’s (2003) claim that aid agencies are more successful when they “focus on narrow, solvable problems”
(p.204).
Taiwan ICDF development assistance is considered an essential part of Taiwan’s foreign aid in Central American nations and is well-received by governments and by local citizens. This is a strength and at the same time an opportunity for Taiwan.
They should make use of this opportunity to work more closely with farmers, the final recipients of foreign aid. As it was stated by both embassies (El Salvador and Guatemala) it’s not Taiwan’s responsibility to get Central America out of under development. The problems with lack of good governance is Central America’s problem. However, it would highly increase a development institution’s own learning to know more about the projects they carried out, the impact they have on farmers and the reasons why they were sustainable or not. Even in the same country there have been differences, some of which were caused by other factors other than the government.
This of course would need to be confirmed in further studies. On top of that, Taiwan
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needs to become more transparent with its foreign aid as citizens of Central American nations have become wary of corruption.
Further research is suggested to determine how government policies affect foreign assistance projects. This can be done by using the same technical assistance provided to different countries that generates different results, as in the case of Taiwan’s guava. It would be interesting to compare government policies of Costa Rica and Honduras with that of El Salvador’s in technical assistance for guava cultivation. This could confirm if the difference between government policies was one of the causes for guava in El Salvador not to develop into a cooperative. Or was it the farmer’s lack of trust to form an association? It would also be beneficial to study why projects are successful in one part of the country and fail in other. For example, why was coopeproguata successful and not asocanjelito or why the Comayagua association has been successful and the Olancho less so. Last but not least, how can Taiwan ICDF improve its projects and stay more in contact with locals without putting the relationship between local governments and Taiwan at risk?
This paper has given the researcher a great hands-on opportunity to see how academic theories in development assistance relate to real life projects. Development assistance can have a big impact on people and this effect can be positive and negative (or neutral). Even if aid is given for free, it should be the responsibility of both the donor and the recipient to see that the impact it has is either good or neutral to low-income aid beneficiaries. Efforts should be made to prevent any negative effect, such as the possibility of beneficiaries seeing a project they invest in fail and since they borrowed the money to undertake the project, they end up worse off.
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Appendix A. Data on Taiwan ICDF Expenditure and Distribution of Expenditure 1998-2015
Table A.1. Agglomerated Expenditure data in NTD 1998-2015 and Exchange rate
Year Category Annual
Expense(NT$)
Exchange Rate 1999 Technical mission 1,115,641,380 32.32 1999 Technical cooperation 146,195,674 32.32 2000 Technical mission 1,527,657,671 31.22 2000 Technical cooperation 237,410,112 31.22 2001 Technical mission 1,178,653,025 33.76 2001 Technical cooperation 79,233,151 33.76 2001 Education and Training 90,971,126 33.76 2002 Technical mission 1,244,132,328 34.56 2002 Technical cooperation 88,490,999 34.56 2002 Education and Training 112,694,463 34.56 2003 Technical mission 1,293,134,152 34.47 2003 Technical cooperation 89,204,359 34.47 2003 Education and Training 85,215,114 34.47 2004 Technical mission 1,360,970,650 33.3 2004 Technical cooperation 67,220,114 33.3 2004 Education and Training 97,922,783 33.3 2004 Policy planning op(incl.
humanitarian)
39,173,955 32.05
2005 Technical mission 1,435,926,918 32.05 2005 Technical cooperation 65,634,774 32.05 2005 Education and Training 74,525,067 32.05 2006 Technical mission 1,532,070,158 32.56 2006 Education and Training 60,933,492 32.56 2006 Technical cooperation 65,110,972 32.56 2006 policy and planning
expenses
42,010,249 32.56
2007 Technical mission 1,430,709,166 32.86 2007 Technical cooperation 64,702,542 32.86 2007 Education and Training 76,796,308 32.86 2007 policy and planning
expenses
36,946,114 32.86
2008 Technical mission 1,422,485,089 31.53 2008 Technical cooperation 109,195,001 31.53 2008 Education and Training 77,107,558 31.53 2008 policy and planning
expenses
21,090,000 31.53
2009 Technical mission 1,314,840,273 32.94 2009 Technical cooperation 116,435,464 32.94 2009 Education and Training 81,878,295 32.94 2009 policy and planning
expenses
46,515,234 32.94
2010 Technical mission 1,294,325,843 31.49 2010 Technical cooperation 105,591,070 31.49 2010 Education and Training 76,140,188 31.49
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Year Category Annual
Expense(NT$) Exchange Rate 2010 policy and planning
expenses
33,874,988 31.49
2011 Technical mission 1,156,735,068 33.37 2011 Technical cooperation 60,123,214 33.37 2011 Education and Training 73,848,721 33.37 2011 policy and planning
expenses
0 33.37
2012 Technical mission 1,160,902,758 29.57 2012 Technical cooperation 68,808,871 29.57 2012 Education and Training 69,122,350 29.57 2012 Humanitarian Assistance 18,894,531 29.57 2013 Technical mission 1,057,088,784 29.71 2013 Technical cooperation 69,614,193 29.71 2013 Education and Training 76,683,963 29.71 2013 Humanitarian Assistance 25,272,450 29.71 2014 Technical mission 990,540,241 30.32 2014 Technical cooperation 80,116,581 30.32 2014 Education and Training 72,200,025 30.32 2014 Humanitarian Assistance 20,646,696 30.32 2015 Technical mission 1,203,386,217 31.78 2015 Technical cooperation 46,299,401 31.78 2015 Education and Training 84,317,343 31.78 2015 Humanitarian Assistance 19,541,329 31.78
Table A.2. Technical Cooperation Expenditure Data 1998-2015 Year US$
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Figure A.1. Technical Assistance Expenditure(US$) from 1998 to 2015
Figure A.2. Distribution of Technical assistance per region 1998-2003 4,523,381.00
7,604,423.83
2,346,953.52
3,534,774.26
1,456,872.28
-1,000,000.00 2,000,000.00 3,000,000.00 4,000,000.00 5,000,000.00 6,000,000.00 7,000,000.00 8,000,000.00
1995 2000 2005 2010 2015 2020
64% 74% 64% 68%
50% 45%
1%
19%
25% 30%
28% 20% 32%
12% 19% 24%
5% 5% 2% 1% 6% 2%
3% 1% 1%
0%
20%
40%
60%
80%
100%
120%
1998 1999 2000 2001 2002 2003
South and Central America Caribbean Africa Asia+Oceania+west asia Europe
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Table A.3. Technical missions commissioned by MOFA expenditure 1999-2015 Year US$
1999 34,518,607.05 2000 48,932,020.21 2001 34,912,708.09 2002 35,999,199.31 2003 37,514,770.87 2004 40,869,989.49 2005 44,802,711.95 2006 47,053,751.78 2007 43,539,536.40 2008 45,115,289.85 2009 39,916,219.58 2010 41,102,757.80 2011 34,663,921.73 2012 39,259,477.78 2013 35,580,235.07 2014 32,669,533.01 2015 37,866,149.06
Figure A.3. Distribution of technical missions per region 1998-2003
23% 24% 22% 24% 22% 24%
13% 14% 14% 16% 13% 14%
43% 37% 40% 42% 49% 47%
21% 24% 21%3% 13%8% 15% 12%3%
0%
20%
40%
60%
80%
100%
120%
1998 1999 2000 2001 2002 2003
South and Central America Caribbean Africa Asia+Oceania+west asia Europe other
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Table A.4. Education and Training Expense 2001-2015 Year US($)
Figure A.4. Distribution of lending and investment per region 1998-2003
42% 50%
1998 1999 2000 2001 2002 2003
South and Central America Caribbean Africa Asia+Oceania+west asia Europe
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Figure A.5. Distribution of investment and lending per region 2004-2009
Table A.5. Humanitarian Assistance Expense 2012-2015 Year US($)
Figure A.6. Humanitarian Assistance Expense 2012-2015
2004 2005 2006 2007 2008 2009
Latin America Africa Asia-Pacific Europe, Central Asia, middle east
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Appendix B. Interview Questions for Guava Associations
English version
1. What types of fruits do you produce?
2. Which fruit is your specialization?
3. Tell me a little bit about the association and how it works.
4. How many members belong to the association?
5. What type of aid did you receive from Taiwan’s technical mission?
6. Was it successful? Why? If it was not successful, why?
7. Did you receive any follow-up from Taiwan’s technical cooperation?
8. What’s your Guava annual production?
9. Do you export or produce for the local market?
Spanish version
1. ¿Qué tipo de frutas produce?
2. ¿Cuál es su especialización?
3. Cuénteme un poco de la asociación, ¿cómo funciona?
4. ¿Cuantos miembros tiene la asociación?
5. ¿Qué tipo de ayuda recibido de Taiwán?
6. ¿Fue exitosa? ¿Porque? Si no fue exitosa, ¿por qué?
7. ¿Obtuvo algún tipo de seguimiento de Taiwán?
8. ¿Cuál es su producción anual de guayaba taiwanesa?
9. ¿Actualmente exporta o produce para el mercado local?
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國立 政 治 大 學
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Appendix C. Interview Questions for Taiwan ICDF officials
1. What approach does your department take to start, execute and evaluate projects in Central America?
2.What are the difficulties your department may encounter during the project
2.What are the difficulties your department may encounter during the project