Markets in everything

by on October 15, 2010 at 7:30 am in Economics, Political Science | Permalink


"The Republic of China (Taiwan)" has delivered to the municipality of Suchitoto, El Salvador two hundred packages of food, four wheelchairs, and a selection of musical instruments.  The accompanying ceremony was attended both by the Chinese ambassador and the mayor of Suchitoto.  Similar donations have been made to Santa Ana y Mejicanos and there are plans for visiting other locations as well.

1 londenio October 15, 2010 at 4:12 am

Market for what exactly?

2 Greg October 15, 2010 at 4:47 am

It's the market for diplomatic recognition due to the 'One China Policy.'

For years now the People's Republic of China and the Republic of China have been competing for diplomatic recognition among those countries that still formally recognize Taiwan as a country. El Salvador is one of the countries that still has formal ties with the ROC rather than the PRC:

You don't have to go far in any of those countries before you find ROC and PRC sponsored libraries, hospitals, scholarships funds, etc. Mainland China has been winning over a lot of the holdouts in the last few years, so of course the market price for relations is going up as they get down to the last few countries.

3 londenio October 15, 2010 at 5:42 am

Thanks Greg. So PRC and ROC are actually _bidding_ in this in this market, i.e. they are buyers. Interesting. It is a nice incentive for a small country to keep flirting with both Chinas.

4 bel October 15, 2010 at 7:03 pm

So what? Chavez has being doing the same with better results

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