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Indicators of Assessing Strategies toward Sister Cities

Chapter 4 The Achievements and Challenges of City Diplomacy in

4.1.2 Indicators of Assessing Strategies toward Sister Cities

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reference for NTC. Kaohsiung City Government not only encouraged the public to establish Sister Cities Association but initiated an innovative project, Sister City Adoption Plan (姊妹市認養計畫) to urge government departments to “adopt” a sister city. For instance, Marine Bureau of Kaohsiung City adopted sister city, Miami, Florida, the U.S. based on the Plan. In March 2010, the Bureau participated in the seminar, 2010 Cruise Shipping Miami and visited Mayor Tomás Regalado of Miami.

It was considered as a significant restart for two cities.

The research found that NTC does not have ad hoc organizations like sister city association, city commission or the corporation to promote sister city activities. The interactions with sister cities in city are very passive. The Government does not take positive act and comprehensive policy on sister city affairs. The overall sister city affairs have not been given sufficient attention in NTC.

4.1.2 Indicators of Assessing Strategies toward Sister Cities

Seeking a sister city is not a random process. Historical connections, shared economic, cultural, recreational and ideological concerns, identical placename, humanitarian consideration, and other various factors may all play important roles. (Zelinsky, 1991) That is, each sister city has its own particularity and needs to be assessed individually.

One-size-fits-all policy is not suitable on sister city affairs. How to assess the status and performance of existing sister cities relationships and how to seek an idea sister city in the future is significant for a city when planning an appropriate sister city policy.

In Taiwan, the process of establishing sister city or friendship city relationship with foreign local government is regulated in accordance with country’s foreign policy. In administrative rule of Ministry of Foreign Affairs (MOFA), “Require Attentions on Processing Agreements of Partnership with Foreign Local Governments for Provincial

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Governments and Local Governments (省政府及地方政府與外國地方政府結盟應 行注意事項)”13, Article 1 stated, when processing agreements of partnership with foreign local governments, the local government shall be based on overall national policy of diplomacy to enhance mutual understanding and friendship and aims to strengthen the friendly relations between the two countries. In addition, in Article 3, the two entities should strive for reciprocity at equal administrative level.

Therefore, under the premise of reciprocity, equality, country’s overall diplomatic relations and the spirit of legislation of the administrative rule, NTC Government proposed four indicators to be based on: Size, Economic Performance, Development Potential and Interactions as indicators for assessing exchange strategy with current sister cities. These are also important indicators for seeking idea candidates for sister city in the future. The four indicators are the following:

Indicator 1: Size

The process of sister city relationship establishment is not arrived at casually, which usually takes months or even years of exploration and mutual interaction through two city governments, MOFA, overseas compatriots and influential interest groups’ strong efforts before the final agreement is re. In Taiwan, the MOFA urges local governments to comply with the spirit of reciprocity at equal administrative level. Additionally, “compatibility” is one of the key factors for two entities becoming comparable partners, the unwritten rule is that they should be in roughly comparable size. (Zelinsky, 1991) Therefore, the size of the community in population and area to NTC (approximately 396 million people an approximately 2,052 square kilometers) should be of the basic criteria for

13 The administrative rule was amended and promulgated by MOFA order No. 0930049405A on Nov. 9, 2004.

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cooperation and exchanges.

Indicator 2: Economic Performance

Originally, the idea of sister city movement was to promote cultural understanding and peace at local level. However, it has gradually changed since the late 1990s. Since the influence of sister city activities is difficult to be measured, these intangible and indirect achievements are often criticized for not bringing direct benefits to general citizens. Many local governments therefore have gradually shifted the goal of sister city relationship to short-term economic development instead of traditional long-term friendship. (Cremer, 2001; O’Toole, 2001; Mascitelli, B., & Chung, M., 2008) In addition, it is difficult to establish substantial cooperation under the principle of equality and reciprocity if the disparity of economic conditions between the two communities is large.

According to Department of Accounting and Statistics of NTC Government, at the end of 2012, there were 133,470 registered business entities and 20,688 factories scattered around five industrial parks in the city. The per capita income was NT$593,540 (approximately US$20,012). Besides, NTC is home mainly to IT, knowledge-based service and tourism industry, the IT sector generates output in excess of NT$4 trillion (about US$127 billion) annually.

In view of this, the community with comparable economic development (per capita income over US$20,000) and similar industrial structure to NTC will be more likely to establish pragmatic cooperation with NTC in the future. The degree of economic development and the industrial structure would be taken as main focuses to see if the counterpart has comparable economic strength and opportunities for industrial cooperation.

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Indicator 3: Development Potential

Along with globalization and activities of civil society, local governments have been increasing their influences on various global issues. Sister city relationship is no longer confined to long-lasting friendship and short-term economic development. The city’s future development potential should be a long-term concern for sister city’s partnership. In view of this, this indicator would use three dimensions, including international status, level of administrative division, and development prospect to assess prospect of sister city.

To further explicate these dimensions, international status can be evaluated by city’s participation in major international organizations of local government such as United Cities and Local Governments (UCLG), Sister Cities International (SCI), ICLEI-Local Governments for Sustainability, etc., or by its city ranking from internationally credible indicators, such as Forbes’ city rankings, “World Development Indicators”, "Mercer Quality of Living Survey" and "Liveability Ranking and Overview" by the Economist Intelligence Unit (EIU).

The counterpart’s level of administrative division has become an essential factor with direction and request from the central authority. Local governments in Taiwan are required by MOFA to strive for reciprocity at equal administrative level14, when establishing sister city relationship with foreign local government.

And development prospect refers to a counterpart embracing a future municipal blueprint similar to NTC, which has more possibility for future cooperation.

14 According to“Require Attentions on Processing Agreements of Partnership with Foreign Local Governments for Provincial Governments and Local Governments” (省政府及地方政府與外國地方 政府結盟應行注意事項) Article 3, when processing agreements of alliance with foreign local governments, the two entities should strive for reciprocity at equal administrative level.

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Indicator 4: Interactions

In NTC, regardless the goal is to establish sister city, sister school, sister museum or other municipal administration’s city cooperation, there are usually many frequent mutual visits exchanges before the signing of partnership agreement.

The frequency of interaction is an important basis of future cooperation.

Wherefore, to analyze the interactions between NTC and its sister city in fields of education, culture, economics, urban planning, tourism and others is an important criterion to overview the achievements of two sides.

4.1.3 Strategies of Sister Cities in NTC

Due to citizen’s criticism of high-cost city diplomacy, the relevant budgets in NTC were dramatically cut nearly in half from NT$8.122 million in 2011 to NT$4.68 million in 2014 during Mayor Chu’s first term. For providing executable strategies under the limited expenditure, to evaluate the status of sister cities is very important for the Government.

The four indicators which were proposed in the previous section will be utilized to assess the status of sister cities in NTC. The assessment would be divided into two strategies, the Substantive Exchanges Strategy and the Information Exchanges Strategy. The Substantive Exchanges Strategy refers to a sister city satisfying three and four indicators, and the Information Exchanges Strategy means a city meeting two or less indicators. The assessment and recommended strategy for NTC sister cities is analyzed as follows and organized as shown in Table 4-2.

Table 4-2: Assessment and Recommended Strategy for NTC Sister Cities

Indicators

According to 2010 Census, Richland County has 124,475 people with area size 1,295 square kilometers. In 2009-2013, the per capita income of Richland County is USD$21,932. Richland County is home to one of America’s most productive electric furnace steel mills. Today, the county holds a significant position in the sensor and plastics industry, and has one of the leading developers of hydrogen fuel cells for power production in the U.S.15 The size of the community and its economic development are comparable to NTC. There is no record of official exchanges during NTC Mayor Chu’s first mayoral term.

15 Richland Community Development Group, “Richland County Strategic Plan”, accessed July 2, 2015, http://www.chooserichland.com/

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Starnberg Kreis, Bavaria

The estimated population of Starnberg Kreis at the end of 2013 is 130,811, the area size is about 488.01 square kilometers. Although the community scale is not commensurate to NTC, the city development is full of potential. Recording a disposable per capita income of EUR€26,120 in 2007, its capital city, City of Starnberg is one of the wealthiest towns in Germany in the Frankfurt suburb of Hochtaunus. Accotding to GfK Purchasing Power Germany 2015, Starnberg Kreis remains Germany's district with the highest per capita purchasing power and has only climbed moderately to €31,479. This equates to 47 percent above the national average.16 Besides, Starnberg and NTC have frequent interactions, there are in total of nine times of educational exchanges between two sides from the end of 2010 to the end of 2014.

Miami-Dade County, Florida

According to 2010 Census, the county had a population of 2,496,435, making it the most populous county in Florida and the seventh-most populous county in the U.S. It is also Florida's third-largest county in terms of land area, with 5,040 square kilometers. According to the 2009-2013 American Community Survey 5-Year Estimates, the period estimates of per capita income of Miami-Dade County is USD$23,174. The area size and economy scale are comparable with NTC. Tourism industry is the city's economic center of gravity. In 2003, 10.4 million overnight visitors came to Greater Miami, infusing the local economy with USD$9.9 billion in

16 Lichtner, C. (2014, December 15). Germans' purchasing power to climb moderately in 2015.

Retrieved June 5, 2015, from GfK GeoMarketing GmbH:

http://www.gfk.com/documents/press-releases/2014/20141215_pr_gfk-purchasing-power-germany-2015.pdf

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direct expenses.17 There was only one exchange record during Mayor Chu’s first term, Mayor of Miami-Dade County, Mr. Carlos Á lvarez paid a courtesy call on Mayor Chu at city hall of NTC on May 30, 2011.

City of Cincinnati, Ohio

City of Cincinnati is the county seat of Hamilton County, Ohio. The city area is about 206.01 square kilometers. It had a population of 296,945 according to the 2010 Census. The size of the city is not comparable with NTC, however, its economic performance is admirable. According to period estimates of 2009-2013, the city’s per capita income is USD$24,779. Cincinnati's diversified economic base includes manufacturing, wholesale and retail trade, insurance and finance, education and health services, government, and transportation. There are more than ten Fortune 500 companies have established headquarters in Cincinnati, such as Procter & Gamble, The Kroger Company, and Macy's, Inc., among many others.18 The city’s potential is brilliant and its economic success could be a good leaning reference for NTC. The interaction between the two sides is frequent, there are mutual visits from the end of 2010 to the end of 2014.

County of Los Angeles, California

The community scale of L.A. County is far ahead higher than NTC. According to 2010 Census, the county has a population of 9,818,605, making it the most populous county in the U.S. and the total area is about 12,310 square kilometers. According to period estimates of 2009-2013, the per capita income of L.A. County is USD$27,749.

17 City-Data (2009). Miami: Economy. Retrieved June 15, 2015, from http://www.city-data.com/us-cities/The-South/Miami-Economy.html

18 City-Data (2009). Cincinnati: Economy, Retrieved June 15, 2015, from http://www.city-data.com/us-cities/The-Midwest/Cincinnati-Economy.html

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The county has a diverse business environment that ranges from arts and entertainment to global trade. With nearly USD$544 billion in annual output, L.A.

County ranks among the world’s largest economies. Its GDP is larger than Sweden, Norway, Poland or Belgium.19 There were two mayor visits between Mayor Eric Chu and Mayor and Supervisor Michael D. Antonovich during Mayor Chu’s first term.

Province of Rizal, the Philippines

According to 2007 Census, Rizal Province has a total population of 2,284,046.

Generally, Rizal Province is an agricultural province. The total area is about 1,191.94 square kilometers. About 32,276 hectares (322.76 square kilometers) were devoted to agriculture. The province still has large areas standing undisturbed.20 There is no record of official exchange between the two sides since sister city relationship affiliated in 2005.

Baltimore County, Maryland

The county has a total area of 1,766 square kilometers. According to 2010 Census, the population was 805,029, making it the third-most populous county in Maryland.

Baltimore County is located in the heart of Maryland and surrounds City of Baltimore.

The location is similar to NTC surrounding Taipei City. According to period estimates of 2009-2013, the per capita income of Baltimore County is USD$34,374. Baltimore is the largest U.S. seaport in the Mid-Atlantic. The diversity is reflected on current employment for most of the County's largest manufacturing, research and development, federal government, health care, utilities, education and financial

19 The Los Angeles County Economic Development Corporation (LAEDC), accessed July 2, 2015, http://laedc.org/

20 Provincial Government of Rizal, accessed July 2, 2015, http://rizalprovince.ph/index.html

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services firms.21 Baltimore County ranks 38 for Best Places for Business and Careers of Forbes in 2014.22 There is one exchange between the two sides during Mayor Chu’s first term.

County of Harris, Texas

According to 2010 Census, the county had a population of 4,092,459, making it the largest county in Texas and the third-largest in the U.S. The county area is 4,602 square kilometers. City of Houston, the largest city in Texas is seat of Harris County.

Houston ranked as Forbes’ No. 1 City for Manufacturing in the U.S. in 2014, as well as No. 1 spot on Forbes’ annual list of America’s Fastest-Growing Cities 2015.23 Harris County’s economic profile clearly reveals a strong dependence on the tourist industry and a growing dependence on the finance, insurance and real estate industries.24 According to period estimates of 2009-2013, the county per capita income is $27,899. After the sisterhood tie established on June 30 2006, there is no official exchange between two sides.

City and County of San Francisco, California

San Francisco is the fourth-most populous city in California with population of 805,235 according to the 2010 Census. The total area is 600.6 square kilometers. San Francisco is the cultural, commercial, and financial center of Northern California. It’s

21 Baltimore County Government. (2014, June 4). Baltimore County's Largest Employers. Retrieved July 10, 2015, from Department of Economic Development:

http://www.baltimorecountymd.gov/Agencies/economicdev/baltimorecountybusiness/choosebaltim orecounty/edd_memployers.html

22 Forbs. (2015). Baltimore, MD. Retrieved June 15, 2015, from The Best Places For Business And Careers: http://www.forbes.com/places/md/baltimore/

23 A Carlyle , E. ( 2015, January 27). America's Fastest-Growing Cities 2015. Retrieved June 30, 2015, from Forbs:

http://www.forbes.com/sites/erincarlyle/2015/01/27/americas-fastest-growing-cities-2015/

24 Harris County Chamber of Commerce. (2013). Economic development = limitless possibilities.

Retrieved June 15, 2015, from http://harriscountychamber.org/economic-development/

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major industry itself has become the backbone of the San Francisco economy.

According to period estimates of 2009-2013, the per capita income of San Francisco is USD$48,486. San Francisco ranks No. 8 for the Best Places for Business 2014 in the U.S.25 There are four records of official exchanges between the two sides during Mayor Chu’s first term.

Summary

Due to the limited budget from the city government, it is inevitable to take different strategies toward different sister cities. For sister cities which have better opportunity for cooperation and closer friendship with NTC should be provided with more administrative resources and vice versa.

After assessing nine sister cities in NTC, only Richland County and Province of Rizal are recommended for Information Exchanges Strategy. (see Table 4-2) Economic scale of these two sister cities is not comparable and even disadvantaged to that of NTC. In addition, there has been no record of official exchange after their sisterhoods established in 1985 and 2005 respectively.

Sister cities meeting two or less indicators mean that they have relatively poor interaction or less development potential to NTC. To strengthen liaison mechanism and re-establish friendship through participating important events become an important restart for two sides. The suggested measures of Information Exchanges Strategy include:

1.) To strengthen liaison mechanisms with the sister city for providing municipal information from time to time.

25 Forbs. (2015). San Francisco, CA. Retrieved June 15, 2015, from The Best Places For Business And Careers: http://www.forbes.com/places/ca/san-francisco/

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2.) To invite the sister city to participate important festivals, conferences and activities in NTC.

On the other hand, a sister city satisfying three or four indicators, including Starnberg Kreis, Miami-Dade County, Cincinnati City, Los Angeles County, Baltimore County, Harris County and San Francisco is recommended for the Substantive Exchanges Strategy. Given that these seven sister cities have closer sister city relationships and better opportunity for mutual cooperation, the Government should take active actions and adopt substantive strategy toward them.

According to practical experience of NTC, a successful sister city relationship largely depends on strong support and efforts of overseas compatriots or dignitaries.

Organizations composed by the citizens, such as Sister Cities Association should be required to set up for planning and implementing sister city related activities and cooperation.

In addition, to make good use of small-scale but specialized activities could promote bilateral relations effectively. For instance, NTC’s sister city, Baltimore County announced that June 30, 2011 as “New Taipei City Day” and inked a memorandum of understanding with Mayor Chu to re-establish liaison contacts on both sides. And Mayor of Cincinnati, John Cranley proclaimed August 2015 as “New Taipei City Month”. NTC were invited to display artworks and artifacts at Duke Convention Center during the Month. Hereby interpreted the recommended measures of the Substantive Exchanges Strategy are as follows:

1.) To establish Sister Cities Association or organization composed by citizens to strengthen existing or possible substantive cooperation in transport, health, social, cultural, economic, education, environment, etc. between two entities.

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2.) To plan specialized activities or projects according to the features of the counterpart.

2.) To plan specialized activities or projects according to the features of the counterpart.