A global plan for a regional projec


Twenty one Asian countries signed the Memorandum of Understanding on the establishment of Asia Infrastructure Investment Bank (AIIB) recently which has become hot leitmotiv for international media because the project is not simply assessed at regional level, it is also as an important content of the global plan of China.
There is little information about AIIB excepting AIIB’s headquartered is in Beijing with most of the initial investment capital from China. Reportedly, AIIB will have a charter capital up to 100 billion USD and the initial registered capital is estimated at 50 billion USD. AIIB functionate to provide financing for the construction of roads, railways, power plants and necessary telecommunications networks for the development of the regional economy. Under the plan, AIIB will officially come in to sign in late 2015 after the founding shareholders approve and sign the terms of the agreement.
China has stated clearly the proposal of AIIB’s establishment is to give full play to the potential in terms of building infrastructure in Asia-Pacific, meet the huge demand in terms of raising capital for investment projects in infrastructure of the concerned countries. The initiative of establishing AIIB was made by Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation Forum (APEC) in 2013 which was said to be aim at reducing reliance on the World Bank (WB), International Monetary Fund (IMF) and the Asian Development Bank (ADB) in investment projects in infrastructure development. These are the international financial institutions China joined but only play a limited role in comparison with dominant role of the US and Europe in the World Bank, IMF or Japan in ADB. Previously, China was in open intention to play a more important role in these international financial institutions.
Moreover, with a huge number of capital its functions as stated above, AIIB is quite attractive to the countries in the region which need to invest capital for developing infrastructure to serve economic development projects. Most founding members are developing countries in Asia, only few strong economies was firmly established itself as India, Singapore and China. Meanwhile, AIIB are assessed as able to play a significant role in the development of infrastructure in Asia-Pacific because AIIB chose a relatively new approach in comparison with the WB or ADB which focus on the field of hunger eradication and poverty reduction. In fact, even the World Bank President, Mr. Im Yong Kim also said that AIIB would be good partners for investing in global infrastructure.
According to experts, AIIB have the opportunity to grow because demand for infrastructure development in Asian developing countries is huge. Estimated, the Asia-Pacific region needs about 800 billion USD per year for investment in this sector by 2020.
Potential development of such AIIB with a prominent role of Beijing in this institution is expected to threaten the influential role of Washington to the region in the context of the US government is implementing policy to the Asia-Pacific region.
Besides, the AIIB’s project has been far reaching out of the region and became part of a global plan by China to reshape global financial structure to ensure the power and benefits of this country. Along with establishing AIIB, Beijing also promote the establishment of a Free Trade Area of the Asia-Pacific (FTAAP). If it is formed, the FTAAP would become a free trade area by the world's largest which account for 40% of the total world population, nearly 50% of the volume of trade and over 50% of global GDP. Initiative of forming AIIB was supposed to aim at a new trade route with Europe with the name “New Silk Road”. Among the projects that AIIB will fund including railway links Beijing to Baghdad, Iraq. So, Washington is undesirable appearance of this financial institution which rules the new challenges posed by the United States as AIIB.
However, the US is expected to be unable to stop Beijing’s plan of officially launch AIIB. Australia, Japan, South Korea and Indonesia did not sign in the original memorandum does not mean that these countries will refuse to participate altogether AIIB in the period up to 2015 when the bank is officially established. Meanwhile, China has not stopped its campaign to expand the number of members involved in the project, especially enlist international forums such as the 22nd Asia-Pacific Economic Cooperation (APEC) in Beijing.

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All comments [ 10 ]

Huy Quốc 17/11/14 19:14

It can only be encouraging that China has launched some sort of ‘rival’ in Asia, to the World Bank, so that China can have a greater influence in world affairs.

Vân Nhàn 17/11/14 19:15

After all, there is a huge contrast between China who prefer to build roads with local populations in foreign countries, while the long racist US & EU colonialists prefer to drop bombs and spread diseases like smallpox and Ebola to exterminate indigenous populations.

Lê Tín 17/11/14 19:17

Of course, if the AAIB does provide a real alternative to the execrable World Bank and IMF it should flourish.

Quốc Kiên 17/11/14 19:18

What is abundantly clear is that the US and EU ‘governments’ lie totally discredited, when they utter the words...'human rights', as their reason to oppose the AAIB.

Phạm Hiếu 17/11/14 19:20

China's $50 billion Asian Infrastructure Investment Bank (AIIB) is seen as a challenge to the World Bank and Asian Development Bank, both of which count Washington and its allies as their biggest financial backers.

Huy Lâm 17/11/14 19:21

China, which is keen to extend its influence and soft power in the region, has limited voting rights in these existing banks despite being the world's second-largest economy...

Quốc Cường 17/11/14 19:23

South Korea, one of Washington's strongest diplomatic allies in Asia, has yet to say it will formally participate in the bank.

Hùng Quân 17/11/14 19:25

We have continued to demand rationality in areas such as governance and safeguard issues, and there's no reason (for Korea) not to join it.

Hoàng Lân 17/11/14 19:26

While Korea has been dropped from the list of founding members of the AIIB this time around, it is still in a deep dilemma on what sort of strategic choices it has to make as China challenges the U.S.-led international order.

Quân Hoàng 17/11/14 19:27

When US & EU ‘politics’ and ’news’ media lamely claim they support ‘human rights’ there is not a reasonable or rational person in the entire world who believes them or indeed has any reason to believe them.

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