「民主價值同盟」與對外援助：以台灣-尼加拉瓜關係為例 - 政大學術集成

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(1)International Master’s Program in International Studies National Chengchi University 國立政治大學國際研究英語碩士學位學程. Taiwan’s “Alliance of Democratic Values” and Foreign Aid: The case of Nicaragua 立. 政治大. ‧ 國. 學. 「民主價值同盟」與對外援助： ‧. 以台灣-尼加拉瓜關係為例 er. io. sit. y. Nat. al. n. iv n C Valeria Arcia h eHolguin i U h n c g Advisor: Mei-Chuan Wei, Ph. D.. July 2020. DOI:10.6814/NCCU202001316.

(2) ABSTRACT This thesis examines the democratic status of Taiwan’s diplomatic allies and the extent to which foreign aid has an impact on their ties to the Island. It attempts to understand why Taiwan, a state which pushes for liberal values and democratic standards, would maintain relations with authoritarian regimes, supporting some of them through foreign aid. It intends to have a better understanding of the subject by analyzing the realist theories of foreign aid for political purposes and the liberal theory of development aid, in order to. 政治大. figure out Taiwan’s intention when it comes to giving foreign aid to countries undergoing. 立. political crisis and facing threats of authoritarianism. By presenting the case study of. ‧ 國. 學. Nicaragua, itself a state with a corrupt political trajectory, which since 2018 has been. ‧. undergoing continuous crisis under the Ortega Regime, we get to understand the existence. sit. y. Nat. of some external factors that take Taiwan to support states that struggle with maintaining. er. io. democratic standards, such as the antagonism with PRC, or the role of the USA as a. n. hegemony in Latin Americaaand the world, which can help i vexplain Taiwan’s foreign aid to. l C n U h i e h n its non-democratic allies. This case studygdemonstrates how, in the field of international c relations, liberal values become secondary when such states as Taiwan are struggling for survival, while having other interests. This would result in an overlooking, on its government’s part, of the democratic aspects of some allies that might potentially provide the inclusion Taiwan so openly seeks. This study also demonstrates how the use of the connotation “alliance of democratic values” to designate all countries allied to Taiwan, might be a contradiction which is the case of such countries as Nicaragua, Haiti, Eswatini, Guatemala, Honduras and Paraguay. Furthermore, it demonstrates how PRC’s push for the. 2 DOI:10.6814/NCCU202001316.

(3) isolation of Taiwan has created a discrepancy between the promotion of Taiwanese liberal democracy- the value that underpinned Taiwan’s domestic policy, and the one they promote through their foreign aid in allied countries such as Nicaragua.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 3 DOI:10.6814/NCCU202001316.

(4) 摘要. 本文以台灣的邦交國尼加拉瓜為例，透過次級資料分析與深度訪談，旨在研究台灣邦交國的政治民主狀況，以及台灣所提供的發展援助在多大程度上影響了它們與台灣的外交關係。筆者試圖理解：為什麼台灣這個追求自由主義價值觀和民主標準的. 政治大. 國家會與其邦交國的威權政權保持關係？本研究結合國際關係研究中現實主義與自. 立. ‧ 國. 學. 由主義理論之對外援助的觀點，嘗試釐清在對外關係上一向強調自由價值與民主同. ‧. 盟的台灣為何仍持續提供援助給遭逢政治危機與威權主義威脅的國家。本研究案例. y. Nat. er. io. sit. —尼加拉瓜—本身是一個長期面臨政治腐敗問題的國家；2018 年以來，尼加拉瓜. n. al Ortega Regime 政權下一直經歷著持續性的危機。，我們能够了解一些外部因素的 iv Ch. n engchi U. 存在，例如與中華人民共和國的對立關係，或者作為拉丁美洲和世界霸主的美國的角色該案例研究表明，在國際關係領域中，類似台灣這種須為其國際生存困境而奮鬥並爭取其他攸關國家主權與國際空間等相關利益的國家，在外交政策上其所信仰跟倡議的自由主義與民主政治理念與價值，往往會成為次要的考量。這導致台灣政府會忽視一些外交盟友的自由與民主狀況，如尼加拉瓜、海地、史瓦帝尼、瓜地馬. 4 DOI:10.6814/NCCU202001316.

(5) 拉和巴拉圭等國家，因為這些盟友提供台灣其所積極尋求的國際承認與接納；這也顯示，臺灣政府使用「民主價值聯盟」來指稱這些邦交國也許成為名實不符的範例。本研究結果進一步顯示，中國在國際社會上孤立臺灣的種種作法，是解釋為何對內強調並實踐自由主民價值的臺灣會持續援助其遭逢政治危機與威權主義威脅的邦交國，以致內外政策價值原則不一致。. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 5 DOI:10.6814/NCCU202001316.

(6) Table of Contents Chapter 1 Introduction...............................................................................................................9 1.1 Research Background ........................................................................................................9 1.2 Research Motivation ........................................................................................................ 14 1.3 Research Purpose ........................................................................................................... 14 1.4 Research Method ............................................................................................................. 15 1.5 Chapters Structure ........................................................................................................... 19 Chapter 2 Literature Review .................................................................................................... 21 2.1 Literature on Taiwan’s diplomatic policies ....................................................................... 21. 政治大. 2.2 The idea of an “Alliance of Democracy” .......................................................................... 26. 立. 2.3 Realism, Liberalist and Soft Power Theories on Foreign Aid ........................................... 29. ‧ 國. 學. 2.4 Taiwan’s Foreign Aid to Diplomatic allies’ vs China’s Aid. ............................................. 32 Chapter 3 Nicaragua: Taiwan’s unlikely ally ............................................................................. 37. ‧. 3.1. Nicaragua’s socio-political situation: .............................................................................. 37 3.2 Nicaragua’s current crisis (2006-2020) ............................................................................ 38. y. Nat. sit. 3.3 Nicaragua-Taiwan Historic relation ................................................................................. 44. er. io. Chapter 4: “Taiwan’s Alliance of Democratic Values” .............................................................. 66. n. a 4.1 Taiwan’s allies ................................................................................................................. 66 iv 4.2. l C n U Taiwan’s use of an “alliance of democratic ........................................................ 76 h e n gvalues” i h c. 4.3 Diplomatic Allies struggles with Democracy ................................................................. 81 Chapter 5 Conclusion ................................................................................................................ 86 References: ............................................................................................................................... 89. 6 DOI:10.6814/NCCU202001316.

(7) List of Tables Table 1 Taiwan’s Foreign Aid towards Nicaragua 2007-2018. ................................................. 51 Table 2 Image of the Center for Agricultural purposes donated by Taiwan.. .............................. 61 Table 3: Allied Countries and their relations period with Taiwan .............................................. 66 Table 4:Methodology Scores to Measure Freedom within countries .......................................... 72 Table 5: Current Diplomatic Allies and their Freedom Status .................................................... 73 Table 6: Allied country’s Freedom score and Ranking .............................................................. 75. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 7 DOI:10.6814/NCCU202001316.

(8) Acronym Index ANPDH The Nicaraguan Association in Pro of Human Rights CABEI Central American Bank for Economic Integration DPP Democratic Progressive Party FUNIDES Fundación Nicaragüense para el Desarrollo Económico y Social IADB Inter-American Development Bank. 政治大 INSS Instituto Nacional de Seguridad 立Social ICDF International Cooperation and Development Fund. ‧. ‧ 國. KMT Kuomintang. 學. IPAID Institute for Poverty Alleviation and International Development. MOFA Ministry of Foreign Affairs. Nat. sit. y. OAS Organization of the American States. n. a. er. io. ODA Official Development Assistance PAHO Pan American Health Organization l PRC Peoples Republic of China. Ch. engchi. i n U. v. ROC Republic of China (Taiwan) TECRO Taipei Economic and Cultural Representative Office EU European Union UN United Nations USA United States of America WHO World Health Organization. 8 DOI:10.6814/NCCU202001316.

(9) Chapter 1 Introduction 1.1 Research Background Taiwan, or as known by many as the Republic of China (ROC), has struggled for international recognition, and this has affected the state’s very existence, sovereignty and legitimacy, while minimizing its democratic values, promotion, and respect for human rights, in a constant antagonism against the campaign for the One China Policy, brought forth by the People’s Republic of China (PRC) since the 1970s. The ROC first ruled China for many years; however, after its 1949 defeat in the Civil War against the Communists, it fled to Taiwan. As the leader of the KMT. 政治大. (Kuomintang), Chiang Kai-shek claimed his government as a representative of both Taiwan and. 立. the Mainland. Most countries recognized the communist government in Beijing, leaving the ROC. ‧. ‧ 國. China.. 學. isolated, while PRC and its government became the only foreign and legitimate representatives of. Since then, Taiwan managed to develop economically and with far more democratic and. sit. y. Nat. progressive values than other Asian countries, but at the same time it struggled to maintain. io. er. diplomatic allies, having to make substantial use of dollar diplomacy towards those who recognize Taiwan as the "true China". However, ROC has managed to still maintain economic relations, as. n. a. v. l C and other countriesn iwho support PRC. 1 well as security relations, with superpowers. hengchi U. The Cold War left the World divided between communist and liberal ideologies, in which one faction wanted to act upon their interest of survival, national security, and participate in the world’s power struggle, by acting upon Realism 2 while another faction wanted to push for international cooperation, and civil liberties with liberalist 3. Taiwan’s situation made the selection of its allies more complex, due to similar economic, security, and political systems. The obvious candidates, due to developing factors, such as geographical surroundings or political conditions, were aligned. 1. Baogang Guo and Chung-Chian Teng, eds., Taiwan and the Rise of China Cross Strait Relations in the 21st Century (Lexington Books, 2012), 11-73. 2 Mark Kramer, “Ideology and the Cold War,” Review of International Studies 25, no. 4 (October 1999): 539–576. 3 Anne-Marie Slaughter, "Liberal International Relations Theory and International Economic Law," American University International Law Review 10, no. 2 (1995): 717-743.. 9 DOI:10.6814/NCCU202001316.

(10) with the PRC. The Countries could only have diplomatic relations with PRC or the ROC, due to the aforementioned One-China policy. After Taiwan was expelled from the United Nations (UN) in 1971, and after its seat was transferred to the People’s Republic of China, the majority of countries acted accordingly in their official relations, installing embassies and delegates only on PRC. According to the Ministry of Foreign Affairs, currently, Taiwan has full diplomatic relations with 15 countries, in the regions of Africa, South America, Central America, Europe, and Oceania, however none in Asia. All of these countries, with the exception of The Vatican, are classified by the World Bank as developing countries due to their socio-economic development status. On the other hand, international organizations4 and scholars have noted that a big part of these allied states have also been classified as authoritarian regimes or are undergoing government corruption scandals and human rights violations. Taiwan’s push for democratic values and human rights in. 政治大. the last 30 years might contradict the behavior of its diplomatic allies, which are also the recipients. 立. for most of the Foreign Aid Taiwan relocates.. ‧ 國. 學. Since 2016, when the Democratic Progressive Party (DPP) took power, Taiwan suddenly experienced the loss of 7 allies, to what President Tsai claimed as pressure from China to isolate. ‧. Taiwan even more, the country stated that it is not within its intentions to be part of a bidding war. sit. y. Nat. with Beijing. 5 However, in the last years, Taiwan's government experienced the criticism coming. io. er. from the Taiwanese population for the vast amounts of aid given to allied countries6; meanwhile some scholars started to question why Taiwan is supporting countries that are struggling to. al. n. maintain a democratic standard.. Ch. engchi. i n U. v. In 2018, Taiwan was undergoing a complex situation, with the loss of 4 diplomatic allies in less than two years. This was the time when President Tsai started promoting the so-called "Alliance of Democratic Values." The term “Alliance of Democratic Values” has been used ambiguously to refer to any country supporting Taiwan's existence, but more often it has been used to describe their diplomatic allies. This is where the name of this paper derives from. This phrase was mentioned in some of President Tsai’s official visits and speeches, where she used it to emphasize her gratitude to the countries that remained diplomatically allied to Taiwan; this was also the case. 4. Freedom House and Transparency International in 2017, 2018 and 2019. Office of the President, Republic of China (Taiwan), “President Tsai's remarks on termination of diplomatic relations with Panama,” Office of the President Republic of China Taiwan, June 13, 2017. 6 James Baron, “Why Taiwan should maintain its foreign aid programs,” Taipei Times, June 6, 2018. 5. 10 DOI:10.6814/NCCU202001316.

(11) in her recent Times Magazine 7 Interview, where she accredited these diplomatic allies as to sharing the principles of Democracy that Taiwan relies upon, as well as supporting Taiwan instead of PRC due to them not being swayed by this country's economic inducements and believing in freedom by recognizing formally the existence of ROC. The Taiwanese government has also used it to refer to the United States' current administration and their anti-China position on many occasions, seeing as an opportunity to invite many countries into not falling for the PRC economic trap.8 The administration under President Tsai has made use of similar terms, referring to shared democratic values in other contexts. This was the case of her seventh official trip to the Latin American Region, where MOFA (the Ministry of Foreign Affairs in Taiwan) announced the. 政治大. Journey of Freedom, Democracy and Sustainability, directed to the Caribbean islands that form. 立. part of the remaining 15 allies. In her departing speech, she mentioned the importance of this trip. ‧ 國. 學. in times of democratic stress. She added that "the trip is an opportunity for Taiwan to work with same-minded partners in defending shared values such as freedom and democracy”9. One of these. ‧. partners being Haiti which, aside from being the poorest country in the Western Hemisphere,10 is also the second most corrupt, only surpassed by Venezuela.11 Moreover, Haiti has experienced. y. Nat. er. io. with a series of coups.. sit. constant political turmoil, its governance being handed by over 15 presidents in the last 33 years,. n. a. v. i l C on the reason whynDemocracies There has been various research completed provide foreign Aid. U. h. e conflicting n g c h i countries. 12 This paper would like to and diplomatic support to authoritarian and Ing-Wen Tsai, “President Tsai interviewed by Time magazine,” Office of the President Republic of China (Taiwan), January 1, 2020. 8 Mainland Affairs council press release, “Taiwan and the United States belong to the same alliance of democratic values; the US should not sacrifice Taiwan's interests to compromise with China's peremptory hegemony," Mainland Affairs council, no. 72, (August 31, 2007). 9 Ing-Wen Tsai, “President Tsai explains trip objectives before departing on her Journey of Freedom, Democracy, and Sustainability,” Office of the President Republic of China (Taiwan), July 11, 2019. 10 The World Bank, “The World Bank in Haiti,” The World Bank, May 1, 2019. 11 Transparency International, “Corruption CPI 2019 global highlights,” Transparency International, January 24, 2020. 12 Stephen Walt, “International Relations: One World, Many Theories,” Foreign Policy 110(1998): 29-32-34-46; Joseph Wright, “How Foreign Aid Can Foster Democratization in Authoritarian Regimes,” American Journal of Political Science 53, no. 3, (2009): 552–571; Danielle Resnick, “Foreign aid in Africa: Tracing channels of Influence on democratic transitions and consolidation,” The United Nations University World Institute for Development Economics Research (UNU-WIDER), 2012 7. 11 DOI:10.6814/NCCU202001316.

(12) analyze the perspective Taiwan has when choosing and maintaining its allies, who are also the primary recipients of foreign aid. Secondly, it would also attempt to understand what projects or sectors the country is financing; this would make us recognize the angle Taiwan aims to take when supporting allied countries. This can be accomplished by overviewing the realist theory of international relations which sees Foreign Aid as a Foreign Policy Tool;13 this theory explains in detail the way in which foreign aid is being used as a geopolitical tool, for countries to accomplish state interest, rather than a mere assistance in the classical sense from the aiding country. This realist, approach-driven analysis is instrumental in telling us whether Institutions in charge of maintaining diplomatic ties and foreign aid, such as the Ministry of Foreign Affairs (MOFA) and the International Cooperation and Development Foundation (ICDF) act in order to accomplish the survival of the state. The state is perhaps merely responding to the monetary demands of their. 政治大. diplomatic allies, thus sacrificing the humanitarian-development basis, in exchange for. 立. international recognition, the aspect Taiwan is vulnerable in.. ‧ 國. 學. The other perspective could also be backed by a more liberal approach, in which the state argues to be working towards building and promoting Democracy, as well as development in these. ‧. countries through Developing Aid, as some scholars have discussed. 14 This would result in the. sit. y. Nat. application of foreign aid to promote the economic, environmental, social and political. io. er. development of a recipient country, which would encourage Democracy indirectly, by strengthening or developing such areas as education, technical assistance, and government auditing,. n. a. v. l Cliberties and a transparent and make population demand for more n i context.15 Foreign aid in many. i U. h. e n g cassessments," h cases has been conditioned on “complex government to avoid supporting countries. whose regimes are authoritarian or highly corrupt. Norms of this kind are advocated in majority by International Organizations, in order to keep promoting a liberalist balance. 16 Since the Cold War, numerous donor countries emphasized good governance and human rights. However, these days, aiding countries have reduced this to recipient countries just holding elections. This liberalist. Claire Apodaca, “Taiwan Gets Cold Feet with Ortega, Fears US Sanctions,” Confidential in partnership with Havana Times, May 24, 2006. 14 Steven Finkel, Anibal Perez-Linan, and Mitchell Seligson, “The Effects of US Foreign Assistance on Democracy Building, 1990–2003,” World Politics 59 (2007): 202-440. 15 Nic Cheeseman, “Why there is a case for giving foreign aid to authoritarian regimes,” The conversation, January 15, 2019. 16 Julia Bader, and Jorge Faust, “Foreign Aid, Democratization and Autocratic Survival," International Studies Review 16 (2014): 575–595. 13. 12 DOI:10.6814/NCCU202001316.

(13) theory applied to Taiwan’s allies would mean that the allocation of funds in projects aims to improve human capital and development through their foreign aid, resulting in middle-class growing and beneficiaries demanding more rights in the long term, as well as a transition to a more democratic system. This paper also takes into account the configuration of soft power used by Taiwan, which can be defined as an influence on the cultural, economic, or political fields without the use of coercion or co-optation.17 This will promote positive characteristics from a country towards the international community, which others will want to imitate, due to beneficial consequences such as international validation or financial assurance. This theory depends mainly on their ability to influence other nations, simply by altering how they are perceived or the image they reflect in the international. 政治大. arena.. 立. Taiwan has made a fantastic impact in the international arena, having accomplished significant. ‧ 國. 學. economic growth in a short period, passing some of the most progressive laws in Asia, promoting Democracy in the Region, overcoming peaceful power transitions, and a beholding reputation of. ‧. kindness to its people. Recently Taiwan has also made a positive campaign by showing the World their accomplishment in handling the Pandemic of CoVid-19, where measures and results have. y. Nat. sit. been incomparable worldwide. Taiwan also promotes values through its diplomacy and foreign. al. n. developing world.. er. io. aid as its institution in charge of these activities report, making Taiwan a feasible influencer in the. i n U. Ch. v. e nnotg search c h i to explain the impact Taiwan’s foreign It is essential to understand that this thesis does aid is having on its diplomatic allies, it is instead a sided perspective on Taiwan’s approach in allocating funds, and the promotion of democratic values, as President Tsai has called them18, in Taiwan's domestic and foreign policy, in order to counterbalance the lowest number of diplomatic allies the country has ever encountered.. 17. Joseph Nye, The Future of Power (New York: Public Affairs, 2011). Lee Hsin-Yin, “President highlights democratic values in Lunar New Year greetings,” Focus Taiwan, February 3, 2019. 18. 13 DOI:10.6814/NCCU202001316.

(14) 1.2 Research Motivation. The number of authoritarian countries has grown in the past decade, re-emphasizing a world division with left and right ideologies, same as after the Cold War. Developing and developed countries ally and respond to political as well as economic interests from such leading hegemonies as the United States (USA) and the People’s Republic of China. This has created a partition in the structure of the world, according to political and geographical similarities. Taiwan’s lack of international recognition has resulted in them resorting to unlikely allies, who have little, if any, similarity of interest. However, the quick rise of Taiwan as one of the 4 Asian Tigers 19 , accomplishing fast economic growth, as well as its leading position in progressive human rights in Asia, has undoubtedly helped Taiwan attain its notoriety, making a clear distinction from the. 政治大. People’s Republic of China. This left many to wonder when will Taiwan be formally a part of the. 立. international circle as an equal member and contribute its voice.. ‧ 國. 學. Nevertheless, Taiwan’s allies have decreased rapidly due to pressure coming from Beijing, and its use of dollar diplomacy. This paper would like to observe Taiwan’s behavior to this situation in. ‧. sit. Nat. considered democratic or have lots of political turmoil.. y. such areas as its response in foreign aid, and the diplomatic ties they hold with allies that are not. er. io. As a national of Nicaragua, one of the countries that support Taiwan diplomatically and which is. n. a crisis, I consider Nicaraguav as a good case study to portray undergoing a political and human rights i l C n U and understand why democracies supporthauthoritarian In addition, I believe the e n g c h igovernments. process which Taiwan undergoes in acting upon its foreign policy and aid might give a more unobstructed view of the International Relations topics and the current balances of power.. 1.3 Research Purpose. Taiwan holds a unique situation in the area of International Politics and Relations. The desire ROC holds for inclusion and recognition from the majority of the world's countries, as well as International Organizations might be causing Taiwan to act in a contradictive manner as to what. 19. Development and Globalization, “The Asian Tigers,” Development and Globalization.. 14 DOI:10.6814/NCCU202001316.

(15) it promotes in a local and regional perspective. Foreign aid is being used in many cases to assure bilateral political survival either for trade commerce, business, or political support in certain global structure matters, and however, this far from ideal practice is implemented by many countries. The issue this thesis is looking to understand comes with the historic affirmation of the constant campaigns, on the Taiwanese government's part, to be considered the true representative of China, one of the reasons for its political preference for Democracy, promotion for rights, and progressiveness. The author would like to discuss whether this promotion is being put into practice in its allies, although many of them might not hold compatible political regimes. This thesis holds as a purpose to examine whether Taiwan’s foreign aid has been allocated according to the principal of the country’s diplomatic policy that emphasizes democratic values. 政治大. and human rights. Two research questioned are raised accordingly. 立. 1. Are Taiwan’s democratic values reflected in the country’s foreign aid policy practice towards. ‧ 國. 學. diplomatic allies?. 2.Is Taiwan’s foreign aid allocation to diplomatic allies being used as a foreign policy tool or. ‧. focusing on aid for development?. er. io. sit. y. Nat. 1.4 Research Method. al. n. iv n C The method this thesis adopts is a qualitative due to the nature of the topic, which h e n method, gchi U addresses the perspective in which Taiwan executes its diplomatic and foreign aid policy with its allies, and whether the practices of these policies go in hand with the domestic democratic values, it so openly seeks. Qualitative Method was defined in Aspers and Corte’s article20 “What is Qualitative in Qualitative Research” as: “multi-method in focus, involving an interpretative, naturalistic approach to its subject matter. This means that qualitative researchers study things in their natural settings, attempting to make sense of, or interpret, phenomena in terms of the meanings people bring to them. Qualitative. Patrik Aspers and Ugo Cortes, “What is Qualitative in Qualitative Research,” Qualitative Sociology 42, no. 2 (2019): 139–160. 20. 15 DOI:10.6814/NCCU202001316.

(16) research involves the studied use and collection of a variety of empirical materials – case study, personal experience, introspective, life story, interview, observational, historical, interactional, and visual texts – that describe routine and problematic moments and meanings in individuals’ lives.”21. This methodology provides different data recollection techniques to be put into practice; the ones that will be used for this research are in depth interviews and secondary literature analysis. In depth interviews provide the opportunity to collect data directly from knowledgeable participants in a certain field, with the purpose of obtaining opinions, perspectives and experiences from the source. In depth interviews comprehend preparation and usually open questions, which have proving or disqualifying hypothesis as goals. 22. 立. 政治大. The in-depth interviews proposed for this research will be coming mostly from Taiwan's. ‧ 國. 學. perspective by including government institutions, experts in the Latin America field, Academia and Civil Society. However, there will also be representation from former government officials. ‧. Nat. y. from Nicaragua.. er. io. 1. MOFA Official:. sit. The interviews proposed are the following:. n. MOFA was contacted to assist a in this thesis; however, they declined; iv 2. ICDF Official:. l C hengchi Un. ICDF officials were contacted to assist in this interview, and they respectfully declined; however, they provided their 2019 and 2018 Annual Reports.. 3. Taiwan Foundation for Democracy: Interviews by any TFD representatives weren’t provided.. N. K. Denzin, and Y. S. Lincoln, "Introduction: Entering the field of qualitative research," In NK Denzin and YS Lincoln (eds.) Handbook of Qualitative Research, 1994, 2. 21. K. Brounéus, “In-depth Interviewing: The Process, Skill and Ethics of Interviews in Peace Research,” In K. Höglund & M. Öberg, eds. Understanding Peace Research: Methods and Challenges. (New York: Routledge, 2011), 130-144. 22. 16 DOI:10.6814/NCCU202001316.

(17) 4. National Chengchi University, Diplomacy Department Interviewee: 盧業中/ Yeh-Chung Lu (Ph. D.) Position: Associate Professor Time and date: April 18 th, 2020 Length: 521 words Method: email Language: English Objective: To understand the importance of Diplomatic ties and how they are managed from a realist and liberalist point of view.. 學. Interviewee: 楊建平/Antonio Chien-Ping Yang (Ph. D.). ‧ 國. Position: Researcher at Chihlee University of Technology, Latin America Economy and Trade. Nat. y. First Interview:. ‧. Studies Center. io. Length: 39:59. sit. Time and date: May 15th, 2020. 10:31am.. er. 5.. 政治大 Taiwanese Expert in the topic of Nicaragua 立. n. al. i n C Location: Chihlee University of Technology. hengchi U Method: In person. v. Second Interview:. Time and date: April 24th, 2020. 11:22 am. Length: 25:44 Method: In person Location: Chihlee University of Technology. Language: Spanish Objective: This would help give a side view on how Taiwan views its relationship with Nicaragua and its cooperation towards this country, as well as a more significant understanding of Taiwanese view on Nicaragua's crisis.. 17 DOI:10.6814/NCCU202001316.

(18) 6. Latin America Taiwan Relations expert Interviewee: 向駿/ Antonio Hsiang (Ph. D.) Position: Director of the Latin America Economy and Trade Studies Center in Chihlee University of Technology. Time and date: April 23 , 2020. 10:07am. Length: 39:05 Method: In person Location: Chihlee University of Technology Language: Spanish and English Objective: This interview will help understand a more general perspective on Taiwan's interest. 政治大 To have a deeper understanding on the alliance of Democratic values pushed by Taiwan, topic 立 which has been written by Yang in several occasions.. in Latin America's allies and how Taiwan has reacted to the political crises in these countries.. ‧. ‧ 國. 學. 7.Nicaraguan International Relations Expert.. sit. y. Nat. Interviewee: Jose Luis Antonio Velásquez (Ph. D.). io. er. Position: Former Ambassador representing Nicaragua in the OAS (Organization of American States), Dean of Political Science at Thomas More University.. n. a. l C Time and date: May 1st- May 13th 2020 Length: 725 words. hengchi. i n U. v. Method: email Language: Spanish Objective: This interview will provide information as to how Nicaragua's government views Taiwan's alliance and aid.. On the other hand, to complement data, the use of secondary literature analysis is required. The importance of this data collection comes from the “interpretations and evaluations that are derived. 18 DOI:10.6814/NCCU202001316.

(19) from or refer to the primary source literature. Examples include review articles (such as metaanalysis and systematic reviews) and reference works” 23 This will be presented through the case study of Nicaragua, one of Taiwan’s allies. The country has been experiencing a political crisis, which involves civil and political repression, human rights abuse, limited freedom of speech, and has resulted in sanctions by multiple actors such as the United States, The Organization of American States (OAS), The European Union (EU), as well as its expulsion from some of the United Nations organisms. However, Taiwan still presents a strong tie with the country and continues to provide them with foreign aid. This thesis will analyze and discuss Taiwan’s behavior within this case, whether it is utilizing. 政治大. foreign aid as a political tool, or it is aiming for development through the projects it finances. The. 立. main source of analysis will be primary and secondary sources of literature, that will describe. ‧ 國. 學. Taiwan’s relation with the country, the allocation of its foreign aid, Taiwan’s reactions to the country’s political crisis and whether there has been a foreign policy change from Taiwan to. ‧. Nicaragua due to the situation this country is going through.. y. Nat. sit. These interviews, along with literature review, will support the discussion on how Taiwan manages. al. n. Nicaragua.. er. io. its diplomatic ties and Foreign aid with allies that have controversial political systems, specifically. Ch. engchi. i n U. v. 1.5 Chapters Structure Chapter one of this Thesis introduces the context that has led to Taiwan’s international struggle to be recognized, and that has led them to have a more distinctive approach to foreign aid and its remaining diplomatic allies, it also evidences the research motivation. Chapter two comprehends the literature review, which demonstrates a timeline of Taiwan’s crossstrait relations with China, Taiwan’s current relation with its diplomatic allies, Taiwan’s. 23. “Evidence-Based Medicine: Welcome,” GSU Library Research Guides, 7AD, June 20, 2019.. 19 DOI:10.6814/NCCU202001316.

(20) democratic and development accomplishments, what Democracy means for Taiwan and its agencies. This chapter also presents the theories concerning Realism (which is Foreign aid as a Foreign Policy Tool), Liberalist (which is Foreign Aid for Development), and last Soft Power, that are being identified within the case study, followed by the political situation in allied countries. The chapter concludes with China's non-conditionality methodology for Foreign Aid, to contrast the context with why Taiwan is competing when dealing with allies. Chapter three discusses the case study of Nicaragua, the context of this country, Taiwan’s relations with it, the country’s political crisis, and lastly, the foreign aid given by Taiwan and the controversies surrounding it in the last years (2016-2020). This chapter has inputs from literary sources as well as from the interviews made.. 立. 政治大. Chapter four discusses Taiwan’s Alliance of Democratic Values within the context of Nicaragua. ‧ 國. 學. and other allies, first, the origin of this term and the occasions it has been used, Nicaragua as part of this alliance and last the paradox of using this term within countries that do not classify as. ‧. democratic.. y. Nat. sit. The conclusion discusses the thesis findings on the perspective Taiwan bases its foreign aid upon. er. io. (either Realism or Liberalist), the China and US factors that affect Taiwan’s decision-making when. n. a and finally how both paradigms it comes to Foreign Aid and its allies, of using Foreign aid as a iv l C n U political tool and as a push for development a balance. h ecannfind i h gc. 20 DOI:10.6814/NCCU202001316.

(21) Chapter 2 Literature Review 2.1 Literature on Taiwan’s diplomatic policies In order to have a complete understanding on what is Taiwan’s Democratic Alliance and. 治政大 stated foreign aid practice, especially when it comes to authoritarian states, as is the case of 立 Nicaragua, and which constitute 40% of the current 15 diplomatic allies. We might reach and the context with its allies, we should understand that there are many factors influencing on this. ‧ 國. 學. understand some questions this thesis puts forth by understanding contexts, mechanisms, and correlations between external and internal variables discussed in Journals, Think Tanks, and News. ‧. Media.. Nat. sit. y. Cross-strait relations and Taiwan’s diplomatic policy. a. er. io. Part of the historical backgrounds that have led to Taiwan’s current situation struggling with. n. v international recognition and its relations relation. l with allies is Taiwan’si cross-strait Ch. n engchi U. We can trace this back to a Civil War, that is commonly known as the Chinese Communist Revolution that occurred between 1927 and 1949, which involved the KMT party who was representing the government of the Republic of China against the Chinese Communist Party (CCP), that represented what we now know as People’s Republic of China. During this period, Japan invaded Chinese territories, which complicated the situation for both sides; however, it resulted in both Japan and the KMT party’s defeat. The victorious CCP founded the People’s Republic of China, and the losing side migrated to Taiwan; both sides still claimed to be the representatives of Chinese citizens. Both sides took different approaches to govern, and both have since independently governed different areas: PRC Mainland and ROC Taiwan. However, each side also has a different 21 DOI:10.6814/NCCU202001316.

(22) understanding of the surrounding context: The People’s Republic of China views Taiwan as a province. In contrast, Taiwan views itself as a territory with its own democratically elected government. For decades, Taipei was recognized as China's official representative, but in 1971, the United Nations switched recognition to Beijing. 24 This has complicated Taiwan’s role in the international arena. The country is considered as not having any sovereign status internationally, since the majority of countries also view it as part of PRC; this results in Taiwan continually pushing to be included in major international organizations. Besides, the matters become even more complex if we consider that Taiwan never declared independence as a separate entity or removed the Republic of China from its Constitution. CCP government has stated that it “would take military action if Taiwan ever formally split.”25. 政治大. President Tsai has slowly been taking a more independent stand internationally on the issue by. 立. standing up to China's threats and calling upon other countries to acknowledge Taiwan, as well as. ‧ 國. 學. to not fall for PRC's tactics. Despite the sovereignty-political dispute, the economic ties between Taiwan and PRC still exist.. ‧. Taiwan's official government website demonstrates Taiwan's economic input to the country. In. sit. y. Nat. 2018, when political tensions were high, the value of cross-strait trade was US$150.5 billion. In that year, travelers from China made 2.66 million visits to Taiwan.. er. io. n. It has not always been a battle for both a sides, starting in 2008 China v and a Taiwan experienced a. l. ni. calmer political period of 8 years, calledCahDiplomatic Truce, i Uunder President Ma Ying-jeou, who e. ngch. represented KMT party. This truce meant both sides would stop competing over allies. One of the reasons this was possible was due to President Ma accepting the 1992 Consensus, even though both sides maintained different interpretations of its meaning. In 2016, when the rival party DPP elected President Tsai to power, things shifted again. Military, Economic, and Allied interactions were turned into a battle, especially after China continued to refer to the “one country, two systems” model for Taiwan. President Tsai has, in many statements, completely opposed this ideal, which is why it became PRCs mission with the use of checkbook. 24. Christopher R. Lew and Pak-Wah Leung, Historical Dictionary of the Chinese Civil War (Lanham, Maryland: The Scarecrow Press, Inc, 2013). 25 Anabelle Liang, “China vows military action if Taiwan, sea claims opposed,” Military Times, June 2, 2019.. 22 DOI:10.6814/NCCU202001316.

(23) diplomacy to provoke the loss of 7 allies to Taiwan in her first term. President Tsai stated that diplomats in the eight years of "Truce" had made Taiwan’s diplomacy a China matter, and it was time to take it into Taiwan’s hands again. 26 “One China policy,” “1992 consensus” and “Dollar Diplomacy”. On the other hand, journalists and scholars have observed how the international policies Taiwan has taken upon have had an effect in the course of Taiwan’s survival and its relation with diplomatic allies. China's One China Principle means obliterating the existence of the other part politically; this. 政治大 their government, stating they won a civil war and are just the succeeding party representative 立 of Chinese people. is why states are forced to choose a side. The PRC has said to uphold these conditions due to. ‧ 國. 學. After years of confrontation, in 1992, both sides met in Hong Kong, and the term “1992. ‧. Consensus” came up. This consensus mainly stated that both Mainland and Taiwan belonged to China, however, the two sides identified (Peoples Republic of China) (Republic of China),. y. Nat. sit. this consensus also mentions working towards unification, yet one of the many issues within. er. io. this is the interpretation as to under whose lead this would occur.. n. a. v. l Cfor years in a diplomatic The two countries have been engaged n i war in developing countries,. U. h. i e n g c hrecognition. providing foreign aid as both compete for diplomatic Taiwan's majority of allies,. being developing nations, sometimes cause demands by these to either side expecting to side with the part which offers more. President Tsai, in 2018, said she would no longer play this game after Dominican Republic cut ties for a better economic offer from PRC. 27 Media has claimed Dominican Republic was persuaded to this switch by being provided with more significant economic benefits by PRC. According to officials at Taiwan’s Ministry of Foreign Affairs, some of the projects being newly financed included the construction of a $400 million freeway, $1.6 billion dollars for the construction of diverse infrastructure, lastly claims Stacy Hsu, “Ma blasts Tsai over diplomatic Truce,” Taipei Times, December 30, 2015. David Spencer, “How China’s dollar diplomacy is really setting a debt-trap for developing countries,” Taiwan News, May 3, 2018. 26 27. 23 DOI:10.6814/NCCU202001316.

(24) support one of the funding’s would provide renewable energy sources, with the cost of over $300 million. The promise of long-lasting ties comes with the typical financial assistance and low-interest loans improvement for this country. 28 Although China does not usually reveal how much aid they are offering (partly to avoid the international claims of promoting dollar diplomacy), it is understood that Taiwan cannot compete with these figures.. Diplomatic truce under President Ma Ying-jeou Part of the policies Taiwan has taken have had a political party influence when KMT came into power in 2008, this influenced greatly how Taiwan’s relations were managed through embassies and other overseas representation, and this resulted in no decrease of allies for some years.. 政治大 It is essential to understand that the period of truce was intended to avoid such use of Dollar 立 Diplomacy. This is why during President Ma Ying-jeou’s first year of office (2008) he proposed. ‧ 國. 學. a plan which he called viable diplomacy towards China, which meant Taiwan accepted the 1992 consensus (The One-China Principle) in the same terms PRC did. Actions like this were. ‧. expected if the KMT party took power back, with the consensus and Pro-China being one of. sit. y. Nat. their most outspoken policy inclinations 29. President Ma claimed a three no policy to lead the. io. er. country's cross-strait relations, which were as follows: no unification, no independence, and no use of force. His first no was said to calm a lot of the Taiwanese population who believed he. n. a. v. i more to no negotiations of l Cafter his win, but it nrefers would hand out the country to China. U. h. e n g cChen h i Shui-bian (2000-2008) spent his terms unification under his term. The previous President pushing for Taiwanese nationalism, which was not in the liking of China, so this decision may. have seemed like a change that might bring a peaceful and prosperous encounter with regional countries as well as leading hegemonies. This period of grace accomplished a relief of tensions in the China-Taiwan relations, as well as no pressure on the 23 allies Taiwan had at this time. The US relations with Taiwan also made improvements; there was an approval for weapon sales coming from the Western hemisphere country, and their reassurance for support in Taiwan’s Relations Act. Regionally, Taiwan. 28 29. Ibid Kuomintang Official Website, “Introduction of the Party,” Kuomintang Official Website, 2020.. 24 DOI:10.6814/NCCU202001316.

(25) signed an Aviation Safety Cooperation with Korea, resumed communications with Malaysia. India and the Philippines gave the same treatment to Taiwan’s Economic office as Diplomatic offices in both countries. Internationally, in 2009, Taiwan was invited as an observer in the WHO assembly (World Health Organization), which marked the first time it participated in any UN system since its exit in 1971. Concerning the instance of foreign aid, this truce also intended to reduce the use of financial incentives to compete for the recognition of each of the sides PRC and ROC. President Ma explained in a visit to the Ministry of Foreign Affairs his new approach on Diplomacy, which he called Living diplomacy, which aims to make better use of Taiwan’s resources in the Foreign Aid community, by not getting involved in Dollar diplomacy or Checkbook diplomacy, but. 政治大 clear distinction to what might violate Transparency and Corruption norms within giving aid to 立 other nations. He did state the importance of still giving foreign aid, seeing the economic. more directed to objectives and goals as proposed to International Organizations, and making a. ‧ 國. 學. development Taiwan has accomplished, and how it graduated from receiving it to giving it. 30. ‧. However, theory can be different from practice since, as we will observe below with Nicaragua's. io. sit. Nat. development projects but for more political purposes.. y. Foreign Aid donations in the period (2014-2016), were, in many cases, not directed towards. er. In 2017, after Panama broke ties with Taiwan, President Tsai stated, “Although we have lost a. n. a. v. i will not change”.31 l C diplomatic ally, our refusal to engage in a diplomatic biddingnwar. hengchi U. Ma Ying-Jeou, “The President visited the Ministry of Foreign Affairs and explained the concept and strategy of Living Diplomacy”, Office of the President Republic of China (Taiwan), 2008. 31 Chris Taylor, “Taiwan walks away from China's 'dollar diplomacy',” Asia Times, August 22, 2018. 30. 25 DOI:10.6814/NCCU202001316.

(26) 2.2 The idea of an “Alliance of Democracy”. It is crucial for this paper to touch upon what is democracy and the recurring values that identify it, many philosophers and political scientists have tried to define it and its criteria, some have added more extended conditions, and some have simplified the definition, to be able to choose their governors, which traces back to having elections and every citizen being allowed a vote. This single-hand requirement has become very dangerous, due to countries encountering extreme corruption in governments, which although lacking in civil and political rights can still be considered democratic, even when undergoing doubtful elections. However, even the Oxford dictionary defines it as Democracy being “government by the people. 政治大. in which the supreme power is vested in the people and exercised directly by them or by their. 立. elected agents under a free electoral system." This definition can be traced to a more modern. ‧. ‧ 國. the people.”32. 學. era with Abraham Lincoln and his claim of a government “of the people, by the people and for. Locke, Rousseau, Montesquieu, Dahl, and Hobbes are all famous philosophers that discussed. sit. y. Nat. this form of governing, even if the concept originated in Athens, around 508. BC. However,. io. er. even though their definitions and inclusions on what rights and limits should comprehend democratic systems vary, their definition tends to be more aimed at what political scientists and. n. a. v. international organizations measurel today: n i identified as a more Liberal C what is nowadays Democracy.. hengchi U. Liberal Democracy is the institutionalization of civil and human rights, along with the election principle. Government is limited in its powers, and the idea of human rights came within the practice of this system. The equality principle comes within the same access to education, health, freedom of speech, social, economic and political pluralism and the result of majority rule however the protection of minority rights.33. Stephenson D. Grier, “The Principles of Democratic Elections,” Democracy Papers, 2017 Marc Plattner, “Liberalism and Democracy: Can't Have One without the Other,” Foreign Affairs 77, no. 2, (1998): 171-180. 32 33. 26 DOI:10.6814/NCCU202001316.

(27) Democracy being so abstract has again resulted in it being a synonym to constitutionalism, which would be bound to legality, if a country's Constitution is upholder, the country would still fall into the democratic term34. This is the reason why in many countries struggling with political crisis, a change of Constitution has been made a casual event 35. Even though the debate on what should be included in democratic values continues, the principles of fair elections, transparency within governments towards their people to protect and push for human and civil rights is agreed upon by International Institutions, and these are what most societies abide by today. During this research we will be utilizing the concept of what today we know as liberal Democracy from author Robert Dahl, as what is understood by Taiwan of the term “Democracy”. 政治大. since it manages to bring together all aspects the country pursues. Dahl emphasizes on some. 立. requirements for a state to be considered democratic, such as total participation of civilians,. ‧ 國. 學. political equality, majority rule and popular sovereignty. While mentioning upon moral and liberal stands humans most also have, and the importance of minorities. 36. ‧. Since Taiwan’s establishment, the state has made constant efforts to differentiate itself from its. sit. y. Nat. communist rival, especially in the Asian hemisphere, where many countries struggle to follow a. io. er. typical representative democracy and have been torn with the human rights crisis while still accomplishing economic development. Taiwan has been a leader in economic development while. n. a. v. l C promoting freedom practicing Western Standards of Democracy, n i of speech, inclusion, and even. U. h. n grights c h ias abortion, gay marriage, and of course, following progressive footsteps by legalizingesuch limiting the role of the government in private life. Taiwan has undergone three peaceful power transitions through direct-voting elections, going beyond Samuel Huntington’s two-turnover test of democratic consolidation. Taiwan holds a strong human rights record, a high degree of transparency, healthy checks and balances, a well-functioning universal health care system, and. Julio Rios Figueroa, “Institutions for Constitutional Justice in Latin America,” in Courts in Latin America, (Cambridge University Press, 2011), 27-54. 35 Latin America has experienced in the last ten years almost a 40% of their countries have made substantial changes in their Constitution, especially in making government periods longer or allowing re-elections, all with great controversy. Some of these being current and previous allies of Taiwan (Nicaragua, Haiti, El Salvador, Dominican Republic, etc.) 36 Richard W Krouse, "Polyarchy & Participation: The Changing Democratic Theory of Robert Dahl," Polity 14, no. 3 (1982): 441-63. 34. 27 DOI:10.6814/NCCU202001316.

(28) limited criminal violence. Political corruption has made progress, and public toleration of political corruption has declined dramatically, Taiwanese feel empowered with their rights and are making constant demands according to their daily situation, which is objectively looking for a common benefit. Taiwan’s Ministry of Foreign Affairs states, in its Foreign Policy Guidelines: “The Ministry of Foreign Affairs of the Republic of China (Taiwan) is responsible for the nation’s foreign policy and diplomatic undertakings. Article 141 of the ROC Constitution states that “the foreign policy of the Republic of China shall, in a spirit of independence and initiative and on the basis of the principles of equality and reciprocity, cultivate goodneighborliness with other nations, and respect treaties and the Charter of the United. 政治大. Nations, in order to protect the rights and interests of Chinese citizens residing abroad,. 立. promote international cooperation, advance international justice and ensure world peace.”. ‧ 國. 學. "Taiwan is dedicated to actively promoting diplomacy for peace, creating sustainable partnerships with diplomatic allies, deepening and broadening substantive ties in various. ‧. fields with countries that have similar values, and maintaining regional peace and stability.. sit. y. Nat. It continues to seek expanded international participation while making concrete. io. economic and humanitarian aid policies."37. al. er. contributions to the global community and enhancing its international profile through. n. iv n C ICDF, the Agency in charge of Cooperation Funds, on the other hand, states the h and e nDevelopment gchi U following as part of their Visions and Objectives:. "To ensure that Taiwan’s resources were fully integrated and fit to deliver aid with appropriate care well into the future, our government established the International Cooperation and Development Fund (Taiwan ICDF) in 1996. Guided by the core value of "progress, development, and humanity," we pursue bilateral and multilateral cooperation with partner governments and international organizations in order to alleviate poverty in. 37. MOFA, “Foreign Policy Guidelines. Ministry of Foreign Affairs,” Republic of Taiwan, June 1, 2016.. 28 DOI:10.6814/NCCU202001316.

(29) our partner countries, strengthen human rights and well-being, and accelerate social and economic development”38 One of the examples of Democratic Values promotion, in which Taiwan is clearly leading the way in Asia; this is also the case of Hong Kong, where in the last years, CCP has threatened to minimize the quality, and levels of freedom the Hong Kongese citizens hold. This sparked huge protests, led to government suppression and major crackdown upon Pro-Democracy activists. Taiwan’s government has condemned these actions and insisted Beijing should meet its commitment to democracy and freedom towards Hong Kong. 39 2.3 Realism, Liberalist and Soft Power Theories on Foreign Aid. 政治大. There are three theories that we can identify in Taiwan's Diplomatic and Foreign Aid Allocation. 立. Process, contrasting its democratic values. One of them belonging to a Realist view of International. ‧ 國. 學. Relations field, which response to Foreign Aid as a Policy Tool.40 The Liberal Approach to Foreign Aid or the Liberalist IR approach, which is the use of Foreign Aid for Development,41 and lastly. y. Nat. Foreign aid as Policy Tool. er. io. sit. on the application.. ‧. the soft power application has been determined by scholars, 42 either liberalist or idealist, depending. n. This approach to Foreign Aid, from a the realist spectrum of IR, vdetails how foreign aid is being. l. ni. C hto accomplish state used as a geopolitical tool, for countries i U interest, instead of the classical e ngch. approach of aiding as a mere assistance practice.. The origins of foreign aid and its growing practice popularity within developed countries comes after the Cold War, when US President Nixon claimed it to be a variable that might delay or stop the spread of communism, so political conditions were kept as a must. Nixon was then condemned by the Fraser committee and International media for embracing governments that practiced torture. ICDF, “Visions and Objectives,” International Cooperation and Development Funds. Teng Pei-ju, “Taiwan president condemns Hong Kong authorities for firing at protesters” Taiwan News, November 11, 2019. 40 Claire Apodaca, “Taiwan Gets Cold Feet with Ortega” 41 Steven Finkel, Anibal Perez-Linan, and Mitchell Seligson, “The Effects of US Foreign Assistance.” 42 Joseph Nye, The Future of Power. 38 39. 29 DOI:10.6814/NCCU202001316.

(30) and violate human rights, which caused the inclusion of the conditionality clauses of human rights, as in the realism paradigm, it would be very gullible to believe that Aid has solely been about helping people. It is mostly about gaining influence in the World and exercising soft power. Providing aid money can give valuable access within International organizations, and in addition it can assure a top position as leading hegemonies. The Realist approach tells us that the world is a dangerous place. States should look out for their own interests and expect the worst. For the Realist theorist, the International Relations field is a competition to lead. Foreign aid origins and its practical approach was first pushed by nations seeking to accomplish their own interest and power exchange, searching support in commercial, economic, international policies, and regional balance issues.. 政治大. By using this paradigm to analyze the case study of Nicaragua, this gives a clearer tactic as to. 立. telling us whether or not Taiwan and such institutions as MOFA and ICDF act to accomplish the. ‧ 國. 學. survival of the state by giving into diplomatic allies’ monetary demands, despite their lack of sharing democratic values the country constantly seeks. This however results in maintaining. ‧. Taiwan’s international status quo.. sit. y. Nat. Democratizing and Development of Foreign aid. er. io. On the other hand, the Liberalist Paradigm is characterized by a promotion of peace and liberal. n. values, and when one State succeeds, a it doesn’t keep others from v doing so, and it also doesn’t. l. ni. Ch believe the world is in danger of War at all times. i U idea believes that global institutions e The liberalist ngch. can promote cooperation to have a win-win. In the Foreign aid section, Development foreign aid is what we have come to know by International Organizations promoting more significant objectives such as the Sustainable Goals of Development, aiming to developing countries, and through this, accomplish the universal practice of human rights and development, leading to larger middle class that can along the way demand their rights and democratic governments.43 This practice can justify foreign aid and ties with non-democracies as long as we can see that it is helping them to move in the right direction. Authoritarian countries, mostly being developing countries, present situations where the most vulnerable citizens might not be having opportunities. 43. Steven Finkel, Anibal Perez-Linan, and Mitchell Seligson, “The Effects of US Foreign Assistance,” 404-440.. 30 DOI:10.6814/NCCU202001316.

(31) for good quality living. These might include famine, civil war or a deadly disease outbreak, or most common low access to education, essential health, and technical support. The international community considers human rights over its repressor's actions. By utilizing this theory, we could also account as to what are the common grounds Taiwan is supporting when it comes to funds and loans to Nicaragua during the period applied to this research (2016-2020). Soft Power Soft power can be seen as a "form of national power that is based on idealization and cultural attraction from a certain nation, which is intentionally or unintentionally utilized by actors in. 政治大 and ideas, tries directly or indirectly to influence educational and socio-economic systems, and 立 legitimate national policies as accepted by other nations and people”. international relations to achieve strategic imperatives. Soft power also constitutes political values. ‧ 國. 學. The political ideals of Democracy, human rights, and the rule of law embraced by Taiwan just. ‧. over two decades ago have created a substantial degree of soft power for countries abroad. The words of US Rep. Adam H. Putnam reflect this reality well: "It is universally acknowledged that. y. Nat. sit. Taiwan is a vibrant democracy and should be accorded a proper place in the family of nations. It. er. io. has been unproductive to keep Taiwan out of the UN, the World Health Organization, and other major international organizations."a. n. iv l C n U h e nare h i compatible g cfully Taiwan has shown that so-called Asian values with Democracy within the. framework of Confucian traditions. It has also proved that the ethnic Chinese value human rights and Democracy as much as anyone else in the World. A clear example of Taiwan’s clever use of Soft Power came hand in hand with the Pandemic that has affected the World since early 2020, COVID 19. Taiwan took early measurements that allowed the country to have less than 500 infected44 and less than 10 losses. By providing allied countries and major powers such as the United States and several European Union states with medical supplies such as face masks as donations, medical cooperation even with the exclusion of the WHO,. This number as up to date with May 2020. Matthew Strong, “Taiwan Corona Virus Cases remain at 441,” Taiwan News, May 23, 2020. 44. 31 DOI:10.6814/NCCU202001316.

(32) and launching campaigns as #TaiwanCanHelp, the country has received praise by many Chiefs of States, as well as gratitude and spotlight as to being so close to the epicenter and keeping its people safe, and even providing assistance to others in need. This comes in a time when many countries45 are blaming PRC and the WHO for not releasing sufficient information in time to keep this Pandemic controlled.. 46. By demonstrating the world its accomplishments as a State in matters of. development, health and education, Taiwan seizes its chance through aid to be seen as a relevant world member. 2.4 Taiwan’s Foreign Aid to Diplomatic allies’ vs China’s Aid.. Currently, Taiwan's foreign aid policy is mostly a response to its China-imposed international. 政治大. isolation, according to scholar Joel Atkison from The Institute for Poverty Alleviation and International Development (IPAID).. 立. ‧ 國. 學. Taiwan’s MOFA website states several goals it focuses on when giving foreign aid: Promoting friendly relations with diplomatic allies. . Fulfilling Taiwan’s responsibility as a member of the international. ‧. . . Developing humanitarianism. al. er. Safeguarding human security. io. . sit. y. Nat. Community. n. iv n C h eAidn g Taiwan’s last report by MOFA on Foreign policy i U in 201847, "Taiwan spent US$302 c h states million (approximately NT$9.1 billion) of its international cooperation and development budget on programs that met the OECD definition of Official Development Assistance, accounting for 0.051 percent of Taiwan's gross national income that year". However, its reports add “it was less than the percentage from 2017, which represented a 0.056 percent, which still wasn't the 0.7 percent goal recommended by the United Nations” The agency also adds that all its cooperation and project funding part from the UN Goals of Sustainable Development. The areas of focus are, development of social infrastructure, agriculture, healthcare, education, economic infrastructure. BBC News, “Trump says coronavirus worse 'attack' than Pearl Harbor,” BBC News, May, 2020. Posher Joshua, “Germans pin coronavirus blame on China: poll,” Politico, May 11, 2020. 47 Previous Reports from MOFA found in their website belong to the year 2013, which doesn’t concern this research. 45 46. 32 DOI:10.6814/NCCU202001316.

(33) and humanitarian assistance, dividing the amounts into these, unfortunately no information appears either by Region or by country. ICDF, as an agency under MOFA, does provide more recent Reports According to their website, this Agency aims to boost Technical Cooperation, Lending and Investment, International Education and Training, Humanitarian Assistance. Their investment in 2016 led to 38 million dollars48 as a total amount to countries they assist: their 2017 report expresses an added value of 60.97 million dollars in aid49, and in 2018 the last public report states an amount of 60.86 million dollars in aid. These previously quoted figures only represent the direct foreign aid, however the amount for approved loans go as far as 546.95 million in 2018. 50 More specific data on the general distribution of Foreign Aid can be seen from 2008. Taiwan's. 政治大. total Official Development Assistance (ODA) in 2008 exceeded US$430 million, or 0.11% of the. 立. Gross National Income (GNI). This aid, of which 92% is bilateral and 8% multilateral, focuses on. ‧ 國. 學. the construction of diplomatic allies’ basic infrastructure (66%); technical assistance (11%); education and training (4%); humanitarian assistance (6%); and other areas (5%).. ‧. To quantify the information per country, as we can observe, has been more difficult since there is. sit. y. Nat. said to be a ban of sharing Foreign Aid figures since 2006, deeming it as confidential.. er. io. On the other hand, China's economic development has made it possible for the country to be an. n. enormous contributor to the Foreign regions in Africa, Latin a Aid field to the underdeveloped v. l. ni. Cinh contrast with many America, and Southeast Asia. However, i U developing economies providing e ngch. aid with some conditionality factors such as democratic requirements, accountability over the project's conditions, and limited areas of financing directed to development, China has accomplished to separate the political sphere and the economical one by financing infrastructures they could even use for international transportation and commercialization, investing on agricultural fields and on the side education and health, as a way of maintaining human capital in benefiting conditions, on the other hand calling upon government aid as donations. If there is one conditionality agreement, it can be recognized in the infrastructure projects where Chinese. International Cooperation and Development Fund, “International Cooperation and Development Fund: Annual Report,” May 2017. 49 Ibid. 50 Ibid. 48. 33 DOI:10.6814/NCCU202001316.

(34) companies must be utilized, due to required infrastructure standards, and can be justified with these smaller countries not having the know-how capacity as to how to perform these projects. However, it is crucial to understand China’s history and its principles of foreign aid to see what has brought Taiwan to this dollar diplomacy. First of all, from 1950-1977: China faced military treat and isolation as well as economic blockage, China aligned itself with socialist countries. For them, foreign aid was seen as an obligation to help third world countries fight colonialism. However, from the beginning, Chinese leaders tried to make a clear difference in westernized practice and the concept of aid, claiming this was the cause of backwardness and a tool of colonialism. Therefore, China’s assistance in these countries was to help these countries achieve national independence from colonial powers. This also helped. 政治大. China gain support from third world countries (LA, Africa, and Asia), which was visible in its. 立. quest for membership in 1971 in the UN. The next stage in 1978-1991 focused on reforms to. ‧ 國. 學. address the main drawback of the previously given assistance; economic viability was put aside over political considerations. Dual role as a receiver and as a giver of foreign aid. It had to respond. ‧. to the UN and assist the goals set upon for assistance. The third stage in 1992-2003 as domestic and international reforms took place, China’s role in the global structure took more significance,. y. Nat. sit. China encouraged new market-oriented institutions to mobilize foreign assistance resources.. er. io. Foreign aid was regarded as a tool for broader cooperation. Enterprises of all forms of ownership. n. a operations and expand theirv internal business. For Chinese were encouraged to invest in overseas. i l C n leaders, it was a way of attracting countries that will be able to consume U h ewith n gproper c h i conditions goods and create a skill and resource exchange.. In the current state, starting from 2004 onwards, China’s foreign assistance has taken on a new function, seeing China as a creditor country in an international monetary system dominated by the US. The Chinese government faces the challenge of turning their reserves into assets and money flows. This is what has motivated China to intensify its strategy with African countries, which is why The Forum on China – Africa Cooperation (FOCAC) was launched in 2000 and continued by yearly visits of top Chinese leaders. China’s economic assistance to Africa has changed to economic cooperation, covering infrastructure, agricultural cooperation, investment, trade other types of financial cooperation. This has come hand in hand with social gifts administered by the Foreign Aid Assistance Department for projects that provide hospital and services as well as school, 34 DOI:10.6814/NCCU202001316.

(35) and technical assistance. This different approach to assistance, as they like to call it, goes within a broader philosophy set up in 1964 by Premier Zhou that consisted basically on thinking aid should be the foundation for development and not dependency, aid should involve mutual benefits like resource transfer and know-how, and especially separating themselves from Western Powers, it should not be used to impose political conditions. This, they claim, comes from their experience as Aid Recipients. Nowadays, however, China’s most known use of foreign aid is the practice of dollar diplomacy, mostly with the purpose of affecting Taiwan’s status as an independent country, as well as a number of allies, by offering loans to finance bigger projects, increasing the amount in donations as a way to contrast the sum of money that Taiwan would be donating, and by putting into evidence. 政治大 in the International Arena. Taiwan has also warned about the danger of these multimillionaire 立 loans, which might cause debts bigger than the single countries’ capabilities to pay up, and might their advantage in trade. China has made hostile monetary attacks by isolating Taiwan even more. ‧ 國. 學. result in China taking over project invested upon, as well as a much higher return of their money on a longer time basis. 51. ‧. The pressure from China to make allied countries swift decisions, as well as political condition,. y. Nat. sit. has had some consequences with the rival hegemony. The United States, as a regional hegemony,. er. io. has executed some pressure when Latin American countries have cut ties with Taiwan, and. n. a Such was the case in 2018, vwhen they recalled ambassadors threatened to cut foreign aid for them. i l C n in El Salvador and the Dominican Republichshortly diplomatic relations with Taiwan were i U e n gafter c hthe suspended.. It is relevant to bring up the fact that both PRC and ROC were both recipients of foreign aid, during non-democratic and unstable political periods, which was the special case of Taiwan during the White Terror Period, were the country was receiving funds and aid from greater powers such as the USA. Which for the case of Taiwan, did result in the accomplishment of economic development and accomplished democratic state practices. This experience might lead Taiwan to supporting governments with political crisis, and not preforming liberal democratic stands, in the hopes aid directed towards the previously mentioned objectives might help accomplish this.. 51. Stacy Hsu, “Ma blasts Tsai over diplomatic Truce.”. 35 DOI:10.6814/NCCU202001316.

(36) However, its unique international status and the search for inclusion, might be stronger reasons to support questionable countries.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 36 DOI:10.6814/NCCU202001316.

「民主價值同盟」與對外援助： 以台灣-尼加拉瓜關係為例 - 政大學術集成

「民主價值同盟」與對外援助：以台灣-尼加拉瓜關係為例 - 政大學術集成