The article argues that countries throughout Asia are expected to see an increased tension, due to competing bids for infrastructural and developmental projects. Curran posits that China and Japan may increase tensions between their current relations, as the Japanese-led Asian Development Bank, and China-led Asian Infrastructure Investment Bank, square off. Curran also mentions that the Philippines possess large-scale financial capital to contribute to investment in the region.
Its Official: Chinese Legislature Ratifies AIIB Agreement
China's top legislature just ratified the AIIB agreement. As the largest contributing member and founder of the AIIB, this ratification sets into motion the development projects that are aimed to begin next year, in 2016. The AIIB agreement is the legal architecture that will define the actions of the bank which is worth 100 billion US dollars.
Taiwan Submits Last Minute Membership Request to AIIB
The long standing rivalry between leaders of Taiwan and China is being put aside in an upcoming meeting between the leaders in Singapore. The meeting was arranged in secret and has only just been made public, days before it transpires. Some in Taiwan speculate that the Taiwanese leader's decision to seek AIIB membership is an attempt to get increased approval ratings and influence the upcoming election in Taiwan.
Singapore to Host Historic China-Taiwan Meeting
Cooperation between Taiwan and China is being facilitated by the Singapore government and they are gong to have to tread lightly, as the two countries have been on bad terms for 70 years. Taiwan applied to become the newest member of the AIIB despite historic tensions with China and this will be the basis for the meeting this Saturday.
Update 2: China applies to join EBRD, board likely to recommend approval
China has applied to join the European Bank of Reconstruction and Development (EBRD), thereby expanding financial and political ties between Asia and Europe. Joining the EBRD would augment the initiatives of China’s “One Belt, One Road” economic policy, as it aims to increase relations, trade ties, and influence between Asia and Europe. EBRD is owned by 64 countries, with G7 countries sitting on its board. Though the bank was originally created to spur development in previously communist nations of eastern Europe, it has since extended its influence to parts of North Africa, Asia, and the Mediterranean. EBRD is expected to recommend approval of the Chinese bid for membership, with final acceptance this December.
How UNDP is positioning itself in a growing donor environment
Impacted by the emergence of new multilateral financial institutions, such as the Asian Infrastructure Investment Bank or the New Development Bank, this article argues that the United Nations Development Program (UNDP) will not be displaced within international frameworks. Santos posits that due to the massive infrastructural gap in Asia, UNDP is more likely to serve as an ‘integrator of knowledge and resources,’ and will thus facilitate much of the growth and developmental projects throughout the Asia-Pacific Region. Santos lastly posits that aside from the emergence of new multilateral institutions, governments should also consider the role that private entities, corporate foundations, and nonprofits might have upon international development.
World yuan-ization thanks to the City of London
Budding relations between China and the UK will aid in the Chinese attempt to convert the yuan into a world currency. China has tried to globalize its economy through policies of ‘gradualism.’ Firstly developing Offshore Clearing Banks throughout the Asian region, China has also developed strategic and security-related tied to the UK, and added the UK as a member to its AIIB. Such steps augment China’s ability to globalize its currency, as at present, the UK is expected to vote in favor of incorporating the Chinese yuan in the Special Drawing Rights of the International Monetary Fund. If the IMF approves the Chinese bid, we might expect an increased demand for the currency of nearly $500 billion US dollars.
China’s Top Legislature Ratified AIIB deal
China's legislature has ratified the agreements on the Asian Infrastructure Investment Bank, making the institution one step closer to its formal establishment. 54 of 57 prospective member countries have signed the articles of agreement, making AIIB expectant of its official opening in early 2016.
Donors to hear needs for funds
In mid-November, multiple Asian nations are expected to participate in the Bangladesh Development Forum. The Bangladesh government is seeking development partners, and will present proposals for up to $30 billion worth of developmental projects. Representatives from the China-led Asian Infrastructure Investment Bank and Japan-led Asian Development Bank are expected to attend.
8th AIIB Chief Negotiators’ Meeting convened in Jakarta, Indonesia on November 3-4, 2015
Chiefs of the bank recently discussed AIIB’s Proposed Budget and Business Plan, its environmental and social framework, and its preparations for establishing the bank. 54 of the bank’s 57 founding members have already signed on to its articles of agreement. AIIB expects to open in early 2016.
China Moves Forward with AIIB Bank
This article reports on China’s recent ratification of the Asian Infrastructure Investment Bank. The agreement ratified is an outline of the financial share of each founding member, as well as rules for policymaking, governance structure, business, and operational systems. Furthermore, it’s reported that AIIB will promote sustainable development within the Asian economy and improve infrastructure connections for the region. China’s voting stake in AIIB is about 26&, the highest of all members. With each additional member, member shares and voting stakes will be gradually diluted.
President Jokowi Wish AIIB, Finance the Large-Scale Infrastructure Projects
President Jokowi of Indonesia reports that AIIB will invest in large-scale infrastructural projects throughout his country. Upon a recent visit to Indonesia, AIIB president, Jin Liqun met with the new Indonesian president to discuss potential partnerships. Projects are aimed at developing remote areas for the provision of electricity, transportation, drainage, urban infrastructure, roads, and railways. President Jokowi mentioned that in comparison to the Asian Development Bank, that AIIB appeared more geared towards procuring the ‘basic’ developmental needs.
AIIB will begin making loans to foreign nations in early January 2016. Indonesia’s Finance Minister reports that the bank will make loans to his nation for the purpose of developing energy and power plants. Indonesia is expected to invest nearly $670 million in AIIB over a span of five years, making it the bank’s eighth largest shareholder.
AIIB Will “Significantly” Bring Together Europe, Asia: Luxembourg Minister
Luxembourg’s minister of foreign and European affairs, Jean Asselborn, expects that the AIIB will augment relations between Europe and Asia. In conjunction with initiatives such as the ‘New Silk Road,’ ASEAN Economic Community, and European Fund for Strategic Investments, AIIB will help to address infrastructure needs throughout both European and Asian regions.
That's a wrap for the AIIB this week. Check back with our blog next week for another weekly update.
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