Does dollar diplomacy work?
During the Nicaraguan presidential campaign in 2006, Daniel Ortega stated that, if elected, he would recognize China and develop official relations with the mainland instead of Taiwan. It was assumed that due to Ortegas leftist background, he would be quick to drop Taiwan and affiliate with China if elected to office. In fact, he had broken off ties with Taiwan during his earlier tenure as president in the 1980s. However, up until today Nicaragua and Taiwan have had close relations ever since Ortegas inauguration in 2007. After Ortega rose to power, Nicaragua became a priority for Taiwans diplomatic officers in Central America. The Taiwanese government has put many resources and much energy into maintaining Nicaragua as a strong ally. During 2007 and 2008, the Taiwanese president at that time, Chen Sui-bien, visited Nicaragua twice. The leaders of these two countries first met at Ortegas inauguration ceremony. Chen visited Nicaragua again later that year. After Ortegas latest political
