The Republic of China-Central American Economic Development Fund (ROC-CAEDF), created in 1998, reflects the enduring importance of the Taiwan's Central American relationships. Development efforts funded by the ROC-CAEDF have solidified the Taiwan's cooperative relations with the Central American members of the Fund—Belize, El Salvador, Guatemala, Honduras, Nicaragua and Panama, etc., (which was admitted into the Fund at the 8th ROC-CAEDF Board Meeting conducted 24 April 2002 at the Nicaragua Ministry of Foreign Affairs, Managua City). The Fund supplies financial and other resources to promote and deepen economic, trade and investment cooperation between the Taiwan and these countries.

The Fund is managed by a Board of Directors consisting of a director from each country party to the agreement, and a representative of the General Secretariat of the Central American Integration System. The Foreign Minister of the ROC (Taiwan), Mr. Francisco H. L. Ou, assumes the role of Chairman of the Board.

ROC-CAEDF funds the following types of projects, and others approved by the Board:

• Projects and programs for sharing economic development experiences between the Taiwan and the Central American countries.


• The design, study and preparation of projects and programs to strengthen economic and trade integration and development in Central America.


• Feasibility studies for socioeconomic development projects and programs in Central America.


• Central American policy and institutional development, and economic reforms including, but not limited to, improvements in trade, investment and taxation systems.


• Public sector capacity building.


• Scholarship programs for studies in the area of economic development and other relevant training in Taiwan.


• Financing the operation of the Central American Trade Office in Taipei.


• Management costs for the Fund.

ROC-CAEDF project proposals are submitted by the Secretariat of the Fund to the Board for approval. Following are the projects the Fund is undertaking in 2004, based on Board approval in 2003.

Read a recent update on ROC-CAEDF activities, published in IC&D #32 (June 2002).

-Executive Training Program

Provide Central American senior executives with opportunities to attend advanced college programs, to deepen their professional skills and develop their abilities to handle complex international conditions. An annual scholarship of up to US$50,000 is available to one beneficiary from each member country for advanced study. The project has a term of three years. Ten beneficiaries have received scholarships to date, including from El Salvador, Honduras, Belize,Nicaragua, and Taiwan.

-Central American Trade Office

Taiwan and its Central American allies are working to establish the Central America Trade Office (CATO) in Taipei as a legal entity. CATO was created in 1997 to promote trade, investment and tourism in the Central American members of the ROC-CAEDF. From July 2000,the ROC-CAEDF will provide CATO per year budget. ROC-CAEDF Board agreed that Belize become a member of CATO in December 2001 and Panama became a member in 2003.
-Scholarship Program for Central American Students in Taiwan

Scholarships are enabling Central American students to study in graduate programs at the universities in Taiwan. Up to date, the program benefits 29 students from all Central American countries.

Support to the MOFAs of The Central American Isthmus for the Ratification of Integration Instruments

The project aims to contribute to sustainable economic and social development of the countries in Central America through implementation of different integration instruments that the region negotiates in order to reach concrete solutions that will facilitate and improve conditions for foreign investment and promotion of Central American trade. The porject will includ the following activities: work meetings and documentation preparation; publication of information; promotional articles; invitations of professionals and personalities to make presentations; promote meetings among different stakeholders, as well as businessmen and investors ; work with national and foreign guilds and associations; strengthening of Central American Embassies; promotion companies of Taiwan, the advantages of establishing companies in the Central American region. The total project amount is US$ 3million and the implementation period is 3 years.
Scholarship Program for Human Resources Strengthening in Socio-Economic and Agricultural Development

The project aims to strengthen the human resources as a way to promote the economic development capacity in Central America. The project will provide scholarship for the students who study in the University of Zamorano stationed in Honduras to complete Bachelor of Science—Agricultural Engineer; and providing scholarship for the Central American students to Taiwan's National Ping-Tung University of Science and Technology for Bachelor of Science in Agricultral. The total project amount is US$ 3million and the project implmentation period is 4 years. The project estimated to benefit 125 students in the Zamorano University, and 25 students in the the National Ping-Tung University of Science and Technology for Bachelor degrees.
Promoting Relations between Taiwan and Friendly Countries by way of Best Practice Transfers

The project aims to promote relations between Taiwan and Friendly Countries by way of Best Practice Transfers. The project will establish standards and requisites for the best practices; the informative mechanisms within the member countries of the Fund to apply for best practices; transfer and share the better practices the friendly countries of the Fund. The project will provide 24 better practices by the end of implementation. The total project amount is US$1.5million and will be implemented in three years.