US$300 Million Balkan Aid Proposal Announced

Following on relief efforts in mid-April by ROC governmental and non-governmental agencies to assist Kosovar refugees in Macedonia, on June 7 President Lee Teng-hui announced that Taiwan would provide US$300 million in aid to the Balkans. The size of the announced package-the largest in Taiwan's history by far-has, however, made it controversial within Taiwan.

At a press conference on June 7, President Lee emphasized that the aid was entirely based on humanitarian considerations, and he urged mainland China to offer similar aid. Lee's statement said that the aid would mainly go to the following areas: food, clothing, housing, medical care, and other emergency support for refugees; short-term occupational training in Taiwan for refugees so that they can better contribute to reconstruction; and reconstruction aid to the Kosovo region as part of long-term international aid efforts.

Premier Ljupco Georgievski of Macedonia, who was visiting Taiwan at the time of the announcement, declared that the US$300 million package would be very helpful in promoting peace and stability in the Balkan peninsula. A spokesman for the Kosovo government-in-exile told the media that Kosovo was in urgent need of aid from any source, and that all of it would go toward reconstruction. Also, the International Red Cross said that it welcomed the aid offer.

The main uses to which the aid will be put have already been decided, but details have not yet been hammered out. However, a spokesman for the office of the UN High Commissioner for Refugees has indicated that as Taiwan is not a UN member, the aid package cannot go through UN channels under the ROC government's name.

Hu Tsu-ching, an associate professor of political science at Soochow University, warns that there are several problems that must be addressed: The Kosovo government-in-exile is mired in internal strife, and it must be decided which "Kosovo" to assist. Ways must be found to ensure that the aid provides practical help to the refugees, and is not diverted into private pockets. With regard to the proposed training program in Taiwan, there are problems of language, health clearance, and so on.

There has also been criticism voiced over the decision-making process. Wei Yung, director of a public policy think tank, contends that the president has neither constitutional nor legal authority to make foreign policy decisions or conduct diplomatic operations. Also, the meeting at which the decision was reached was not a meeting of the National Security Council nor of the Cabinet, so it is uncertain how binding this decision is. In addition, legislators complain that they were not consulted and the legislative caucus of the New Party has noted that neither the official budgets (for either 1999 or 2000) nor the Executive Yuan reserve fund can support such a huge outlay.

Faced with such questions, Wei Tuan, head of the Directorate-General of Budget, Accounting, and Statistics, says that the money need not come from any single year's budget, but will be spread across several years. In addition, besides the already-passed budgets, the government could also ask for a follow-up or special appropriation. Funds might also come from private sector contributions or from the International Cooperation and Development Fund.

Premier Vincent Siew has said it was only with international assistance that Taiwan was able to recover from war and enjoy the prosperity it enjoys today. What's more, Taiwan currently spends a much lower percentage of its GNP on foreign aid than countries at a comparable level of development. Thus, says Siew, Taiwan should contribute more to the international community.

Magazine editor Fan Chen-chien recalls that American milk powder and flour was very helpful to his generation as they grew up. If we have the opportunity, he says, naturally we should help in the reconstruction of Kosovo. From a self-interested point of view, regardless of whether the US$300 million is spent on basic goods or construction, it will be spent within Taiwan; it will stimulate domestic demand and help the economy. However, he adds, the aid should be seen first and foremost as a humanitarian gesture.

During the recent visit of the premier of Macedonia, numerous agreements were signed between Taiwan and his country, including agreements on government-to-government economic development cooperation and investment guarantees. It is hoped that these will contribute to the stabilization and reinvigoration of Macedonia's economy. Of the money, US$10 million will go first to assisting Macedonia handle the refugee problem in its territory.

Yin Tsung-wen, secretary-general of the National Security Council (part of the Office of the President), says that the aid is not only part of diplomatic activity, but can also be considered from the strategic standpoint of helping national security through humanitarian action.

The aid package proposal not only expresses humanitarian concern and strengthens diplomatic channels, it also provides an occasion for thought and discussion about how Taiwan can concretely fulfill its responsibilities in the international community. This is a rare experience indeed.

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When will the Kosovars be able to rebuild their homes? (photo by Chen Mei-ling, GIO)