Photo: Taipei 101, photo by: Olimpia Kot
What is happening?
In 1988, Taiwan’s Ministry of Economic Affairs (MOEA) established the International Economic Cooperation Development Fund (IECDF), which was restructured into the International Cooperation and Development Fund (ICDF) in 1996 to streamline development loans and technical assistance to “developing nations.” Since then, the country’s official development assistance (ODA) policy has evolved, expanding beyond diplomatic allies and unofficial partners to a broader range of countries and changing the nature of aid through a newfound focus on long-term projects.
What is a broader picture?
Although Taiwan does not maintain formal diplomatic relations with many countries, its informal economic relations, educational exchanges, people-to-people ties, subnational diplomacy, and foreign assistance have become vital foreign policy tools. One of these tools is Taiwan’s foreign assistance, which primarily focuses on technical assistance and capacity building, including specialized training in health, agriculture, technology, engineering, and environmental protection. In 2023, Taiwan allocated approximately US$468 million of its international cooperation and development budget to programs that met the OECD’s definition of Official Development Assistance.
The 2023 White Paper on Taiwan’s International Cooperation and Development Policies, marking the first update in over a decade since the 2009 White Paper on Foreign Aid Policy, reflects a shift in Taiwan’s foreign assistance approach. The 2009 paper emphasized pragmatic diplomacy directed mainly at Taiwan’s diplomatic allies, with one of its most successful medical diplomacy efforts being collaboration with São Tomé and Príncipe to reduce malaria instances significantly. In contrast, the 2023 White Paper marks a departure from focusing on financial aid to a broader technical assistance and cooperation strategy. This shift aims to enhance Taiwan’s international image, particularly among non-allies, and to build more trustworthy relationships. An example of this new direction is a project coordinated by Taiwan’s Ministry of Foreign Affairs, which addressed high rates of HIV, tuberculosis, and hypertension among cross-border patients in South Africa and Malawi.
Since the early 2000s, Taiwanese civil society, including NGOs, has played a more significant role in international humanitarian aid and development. While the ICDF initially facilitated civil society’s involvement in foreign aid, Taiwanese NGOs have increasingly charted their international paths, secured independent funding, and formed alliances to tackle common global development challenges. The Buddhist Compassion Relief Tzu Chi Foundation is the most prominent example, running educational, disaster relief, and environmental programs worldwide.
Why does it matter?
Taiwan’s evolution from an aid recipient to a donor highlights a strategic shift in its international engagement. This shift concerns development assistance and redefining its global standing without formal diplomatic recognition. Through technical cooperation, humanitarian aid, and capacity-building efforts, Taiwan is actively constructing alternative avenues of influence, leveraging its expertise to build long-term relationships beyond its traditional diplomatic allies. Despite political constraints, this shift underscores Taiwan’s ability to operate as a de facto international player.
However, Taiwan’s development assistance exists within a contested geopolitical landscape. While its contributions to global health, disaster relief, and economic cooperation have demonstrated tangible benefits, such as its engagement in combating the effects of COVID-19 through the donation of 50 million medical masks worldwide, including European countries, or humanitarian aid to Ukraine, its efforts are systematically overshadowed or politicized due to Beijing’s diplomatic pressure.
