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Does size matter? Foreign aid in Taiwan's diplomatic strategy, 2000–8

This article is the first systematic attempt at estimating the size of Taiwanese foreign aid and, thus, the cost of Taiwan's aid diplomacy. It questions the Republic of China (ROC) President Ma Ying-jeou's justification of his ‘diplomatic truce’ with China as necessitated by an ineffectiveness of his predecessor Chen Shui-bian's costly aid diplomacy. Deriving its evidence from the ROC governmental budgets, local media reports and interviews with Taiwanese officials involved in foreign aid implementation, the article argues that President Chen did not engage in ‘generous financial aid’ and proposes that this parsimony, rather than futility of aid diplomacy as a strategy to expand Taiwan's international space, should be considered as contributing to Taipei's diplomatic failures from 2000 to 2008.