Taiwan pushes for IMF membership to enhance financial resilience
- In Reports
- 09:07 PM, Oct 26, 2024
- Myind Staff
Taiwan, an economy comparable to Poland but excluded from global organisations, is making a bold attempt to join the International Monetary Fund (IMF), a 190-country entity that provides emergency loans and other financial aid to its members.
According to the Taipei Economic and Cultural Representative Office in Washington, which functions as Taiwan's unofficial embassy in the US, IMF membership would enhance the island's financial resilience. This initiative is part of a broader strategy to elevate Taiwan's global standing. In addition to pursuing IMF membership, Taiwan is also seeking to participate in the World Health Organisation's annual World Health Assembly and aims to join Interpol. The United States and its allies are supporting Taiwan in these efforts.
However, China views Taiwan as a breakaway province and has threatened to annex it by force, obstructing the island's efforts to gain international recognition. China insists on representing Taiwan in global forums, and as a result, Taiwan is referred to as the "Taiwan Province of China" in IMF literature.
In 2020, former President Donald Trump signed legislation establishing US policy to advocate for Taiwan's membership or observer status in international organisations, including the IMF. The US State Department has emphasised that the world could benefit from Taiwan's expertise and resources in tackling some of today's most pressing global challenges. It stated that it would continue to support Taiwan's inclusion in international organisations where statehood is not a prerequisite and would encourage meaningful participation in groups where full membership is unattainable.
The IMF has not commented on Taiwan's efforts to secure membership. While the United States holds the most significant influence within the organisation, China also wields considerable power, possessing more voting rights than any other country except the US and Japan. Notably, Bo Li, a former vice governor of the People's Bank of China, currently serves as the IMF's deputy managing director.
Taiwan's pursuit of IMF membership is aimed at safeguarding the democratically governed island against potential financial aggression from China, which remains intent on seizing Taiwan, even by force if necessary. As concerns about a military conflict in the Taiwan Strait grow, analysts and observers are increasingly worried that Beijing may resort to economic and cyber warfare to compel Taiwan's surrender.
In a recent report, the Taiwan Academy of Banking and Finance cautioned that China could attempt to destabilise the Taiwanese currency by making significant bets against Taiwan's stock market and manipulating foreign exchange markets. Gaining membership in the IMF would provide Taiwan with access to a financial safety net that it could utilize for self-defence.
The US House of Representatives has passed a bill aimed at directing the United States to advocate for Taiwan's IMF membership. This legislation demonstrates a growing bipartisan concern over Beijing's increasing threats to Taiwan, an island that plays a crucial role in the global supply of computer chips.
Representative Patrick McHenry, a North Carolina Republican and chairman of the House Financial Services Committee, stated in January that the United States must look beyond Beijing's military threats and assist Taiwan in fortifying its financial defences.
As one of the world's most advanced and innovative economies, Taiwan should be included in the fund's activities, McHenry said.
Although Taiwan lacks a seat at the United Nations, Representative Young Kim, a Republican from California, pointed out that Kosovo, located in southeastern Europe, is a member of the IMF despite not being recognised by the UN.
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