Taiwan is shifting its diplomatic strategy to promote the economic development and welfare of its allies.
The News Lens
Date: 2018/08/13
By: Ping Fang-li
Photo Credit: Reuters / TPG
Haiti, one of Taiwan’s 18 formal allies, seeks to benefit from a recent switch in Taiwanese investment strategy that will see Taiwan promote public and private sector cooperative investments in allied nations. The most important element of this proposed cooperation includes the provision of a power grid and distribution system to electrify the whole of Haiti, starting with its capital city, Port-au-Prince.
In the past, Taiwan encouraged private enterprises to invest in allied states, but its new strategy encourages public involvement in agriculture, infrastructure, and animal husbandry investments. Haiti hopes to see an immediate payoff as, at present, less than one-third of the country has access to electricity.
Liberty Times reported that Haitian President Jovenel Moïse paid a visit to Taiwan at the end of May to start bilateral negotiations with Taiwan’s president, Tsai Ing-wen (蔡英文), and to sign a joint communiqué agreeing to strengthen cooperation between the two countries. The two heads of state also reached a consensus to set up a high-level task force to jointly draft, within the following 60 days, the terms of the cooperative efforts needed to develop and improve Haiti’s economy and infrastructure, as well as potential channels for attracting more investment from Taiwanese companies.
If negotiations continue without a hitch, then the agreement and contracts will be signed by the end of the year, marking the very first time Taiwan will cooperate with an ally under the Official Development Assistance (ODA) model. According to the Organisation for Economic Co-operation and Development, ODA constitutes “flows of official financing administered with the promotion of the economic development and welfare of developing countries … and which are concessional in character with a grant element of at least 25 percent (using a fixed 10 percent rate of discount).” [FULL STORY]
