This is a continuation of an earlier post about the China/Taiwan rivalry far from the spotlight in developing Caribbean nations. The story is interesting in light of China’s growing influence on global trade and investment.
Here is the nub of the issue: Belize, Haiti, St. Vincent & the Grenadines, and St Kitts/Nevis recognise Taiwan while the rest of the Caricom countries have diplomatic relations with China. The former have all lost their preferential place in the European Union market for bananas and sugar, or both; and aid from traditional donors, particularly the US, has dwindled. The result has been dislocation in their work force, and a decline in income. They feel that Taiwan is a likely source of development aid inasmuch as Taiwan has fewer allies among which to spread its economuc largesse.
It is alleged that pro-Taiwanese CARICOM members prevent the creation of a structured regional relationship on trade, aid and investment with China. This statement is an over simplification of the issues involved, however even if same were true, each sovereign has the right to pursue bilateral cooperation and mutual interests for the national benefit. This is also an attempt to pressure the pro-Taiwanese Islands into recognizing China. The governments of Belize, St. Kitts/Nevis and St. Vincent & the Grenadines have received considerable help from Taiwan, which continues to invest in these Island economies – particularly in areas where traditional donors and lenders have disappeared. These governments simply cannot afford to reject the Taiwan funding.
The parties ought to observe the Dominican Republic, an Island nation that has shown a remarquable capacity attract foreign investment. The Dominican Rebublic is CARICOM’s partner in CARIFORUM, and it shows that it is possible to have diplomatic ties with one of the China’s and to trade with and attract investment from both. In 2006, trade between the Dominican Republic and China reportedly totalled US$500 million, 6 times as much as the $80 million with Taiwan, with which it has diplomatic relations. All CARICOM signatory members should discover the Dominican Republic’s strategy and adopt the best practices of that wave. Any other conclusion involves the imposition of unfair restraints on free trade between consenting partners.
