Asian Perspective

Abstract:

Taipei and Beijing have utilized foreign economic assistance as an instrument of foreign policy since the 1950s. Foreign aid has been useful to both in their diplomatic competition. Traditionally, the donor’s diplomatic motivation in giving aid reflects its calculated selection of specific recipients and thus is conducive to the formation of aid distribution patterns geographically. However, the fact that geographical aid distribution and concentration patterns are also partially determined by the recipients according to their own needs must be ignored. Indeed, the vastly different experiences of economic development in Taiwan and the People’s Republic of China (PRC) help to explain the disparities in their foreign aid programs. The distinctiveness of aid programs between Taipei and Beijing further indicates diverse aid distribution and concentration patterns geographically.