Taiwan's official development assistance for other countries dropped to US$430 million last year, or 0.11 percent of GDP, compared with the previous year's 0.14 percent, the Ministry of Foreign Affairs said yesterday on the release of its annual White Paper on foreign aid policy.
The figure was far below the 0.7 percent threshold recommended by the UN.
The decrease was a result of Taiwan halting all aid to Malawi after the African country switched relations to Beijing in December 2007, said a ranking ministry official who asked not to be named.
Minister of Foreign Affairs Francisco Ou (歐鴻鍊) said that although the figures showed a slight decrease, the government would redouble its efforts to ascertain that resources and aid programs were properly used to benefit recipient countries.
Ou said that under President Ma Ying-jeou's (馬英九) principle of “flexible diplomacy,” foreign aid must be donated in an “appropriate, legitimate and effective” manner.
Australia and New Zealand had expressed concern about Taiwan's foreign aid programs in the Pacific because the funds were often used to sway political opinion, leading to regional instability, Ou said.
However, global opinion is changing because of Taiwan's effort to increase transparency in its diplomatic dealings, he said.
“These countries have even hinted at their willingness to cooperate with Taiwan in various joint humanitarian efforts in the region,” Ou said.
As for debt cancelation, which has been proposed by several of Taiwan's allies, Ou said it was not feasible because most of the creditors are private Taiwanese banks, which means the government would be burdened with the loans if the debts were canceled.
In addition to direct bilateral financial and know-how support, Taiwan aims to increase its involvement in multilateral organizations such as Mercy Corps and Food for the Poor, the minister said.
The government also plans to offer investment incentives and other measures such as tax cuts to encourage the private sector to boost their donations and investment in Taiwanese allies and developing nations
Two of the nation's allies — Guatemala and El Salvador — have confirmed cases of the H1N1 virus. Ou said if possible, Taiwan would be happy to donate vital medical equipment and drugs to these countries during Ma's tour of Latin America next month.
In related news, the ministry yesterday held a ceremony where the Taipei branch of the shoemaker Crocs donated 20,000 pairs of shoes to needy children in Indonesia via the Taiwan Fund for Children and Families.
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