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• Continued substantial funding and high-level leadership attention from Taiwan is critical to the effective employment of aid and assistance as a tool in Taipei's foreign policy kit.
• It is important for Taiwan to emphasize repeatedly that it offers assistance as a partnership with recipient countries, not a top-down transfer of infrastructure (which is more characteristic of China's approach to development aid).
• The effectiveness of Taipei's aid and assistance programs would be bolstered by more explicitly building these into a framework that recognizes that such aid programs are merely one component of the broader relationships Taiwan has with its diplomatic partners in the region.
• Taiwan cannot be certain that under all circumstances will it be able to successfully hold onto its diplomatic partnerships in Latin America and the Caribbean.

The Republic of China (Taiwan) faces a growing challenge as the number of countries that extend it formal diplomatic recognition continues to shrink. In the past, Taiwan was able to expend substantial amounts of money in competition with China for global diplomatic recognition. Today, however, as China has grown richer and more influential, Taipei has to spend smarter and tailor its giving more strategically if it wants to continue to leverage development assistance as an incentive for countries to refrain from swapping recognition of Beijing in exchange for economic rewards.

How can Taiwan optimize its development assistance to Latin America and the Caribbean to ensure that it gets the maximum diplomatic value out of its generosity? What aid programs does Taiwan currently undertake in the region, and what does it get from its efforts? How does Taiwan's assistance fit with U.S. policy goals and giving in the region? Are there areas where adjustments could be made that would produce synergies between Taiwan and U.S. efforts while also reducing the temptation on the part of regional governments to de-recognize Taipei and switch ties to Beijing?

This report explores these questions and finds that, on the whole, Taiwan's assistance to the governments of Latin America and the Caribbean is well-received, improving desired outcomes such as enhancing local livelihoods and contributing to greater resilience and more rapid disaster recovery and relief.

• Chapter One

  Introduction

• Chapter Two

  Understanding Taiwan's Aid and Assistance to Latin America and the Caribbean

• Chapter Three

  U.S. Aid to Latin America and the Caribbean and U.S. Views of Taiwan's Role in the Region

• Chapter Four

  Conclusion: Optimizing Taiwan's Aid and Assistance to Latin America and the Caribbean