Overview:
Taiwan emerged as Palau’s top development partner in 2023, contributing 28 percent of the nation’s Official Development Finance—surpassing Japan, the United States, and Australia—according to the Lowy Institute’s Pacific Aid Map. The data highlights the strength of the Taiwan-Palau partnership and its growing role amid regional competition for influence.
By: Bernadette Carreon
Taiwan contributed more than any other nation to Palau’s development in 2023, accounting for 28% of the island nation’s Official Development Finance (ODF), according to data from the Lowy Institute’s Pacific Aid Map.
The contribution makes Taiwan the leading development partner for Palau, ahead of regional powers Japan (24%), the United States (19%), and Australia (17%). Together, these four partners provided 88% of all ODF support to the Pacific island nation.
Palau is one of only a handful of countries that maintains formal diplomatic ties with Taiwan rather than the People’s Republic of China, making development assistance a crucial element of this strategic alliance.
Competition for influence between Taiwan and China has intensified in recent years. The island nation of approximately 18,000 people has been a consistent supporter of Taiwan in international forums.
Palau provides aid in grant support, aquaculture projects, climate change and disaster risk reduction projects and horticulture among others.