ABSTRACT
This chapter uses the international, national, and individual levels of analysis to examine why small states recognize Taipei. The international level of analysis focuses on the role of the international system, including relative position of relevant states in the world and their interactions. The national level of analysis takes into account the important factors within those states. The chapter elaborates on the role of ideology, economy, and geography in the diplomatic recognition of Taiwan. A factor that influences the diplomatic recognition of Taiwan is the political and economic status of small states in the post-WWII era. The chapter elaborates on three factors: ideational, economic, and geographical in descending order of changeability and discusses domestic actors, such as bureaucrats and interest groups, on the individual level of analysis. Foreign aid is the most important economic reason for the diplomatic recognition of Taiwan. Taiwan started to provide technical assistance in 1959, and has increased grants, relief, and loans since 1988.
