The first is the mainstream western perspective. This holds that the US is the world’s main force of peace and stability in the world and thus the rise of China is inherently ominous. In this picture China and its economic partners, Russia first and foremost amongst them, are existential threats that need to be contained either by cooperation or confrontation. The second is … [Read more...] about But what does this all Mean? There are Three Perspectives on this.
Why is China doing it?
Of course, as recipients of IMF and World Bank “aid” over the years learned long ago, the idea of “infrastructure development” is not so politically neutral or economically beneficial as it sounds. China’s eagerness to start converting some of its excess foreign reserves into international political capital and soft power is understandable, but it has long faced the problem … [Read more...] about Why is China doing it?
What will the Bank do?
As a development bank, the AIIB will fund infrastructure development and invest in projects to contribute to the economic development of the Asian region. A 2009 report from the Asian Development Bank estimated that between $8 and $13 trillion of investment would be needed through the course of this decade to keep Asia on its economic development path. Many of China’s … [Read more...] about What will the Bank do?
Didn’t this all Happen Last Summer?
No, that was the formation of the BRICS’ “New Development Bank,” announced at the 6th BRICS Summit in Brazil. The NDB is now very much on the back burner as China throws its weight behind the AIIB, which is more directly under its influence, leaving India and other BRICS partners wondering just how committed China is to the NDB at all anymore. … [Read more...] about Didn’t this all Happen Last Summer?
Asian Infrastructure Investment Bank
The “AIIB” is the Asian Infrastructure Investment Bank, a new multilateral development bank first proposed by Xi Jinping in a speech to the Indonesian parliament in October 2013. At the time, Xi explained that “to support the process of interconnection and integration of the economic development in the region, China has proposed to build the Asia infrastructure investment … [Read more...] about Asian Infrastructure Investment Bank