Countries within the Organization for Economic Cooperation and Development (OECD) will halt export credits for the financing of coal plants. Except in those circumstances where there are no viable alternatives, or where the most efficient of technologies are used, OECD nations intend to phase out public financing for coal plants throughout the world. Ignited after US President Barack Obama issued a speech in 2013 admonishing credit exports to coal-fired plants overseas, the World Bank, European Investment Bank, and several European nations began to issue similar declarations. Now, the OECD has announced its phase-out, as well. The authors assert that developed countries must now dissuade other emerging economies, such as China and its AIIB, from replacing these gaps in export credits. Bovarnick and Ogden stress that countries must work together to control public investment for projects with high rates of carbon emissions and pollution.
AIIB Union Cabinet Has Ratified the AIIB Articles
The official ratification of the AIIB articles will allow member countries to raise and avail resources for their infrastructure projects. This is India's chance to become a major player in a multinational institution. India hopes to become the second largest shareholder in the AIIB after China and is currently one of the largest borrowers.
With Chinese and American Trade Deals on the Table, Asian Countries are having to Pick Sides
Although China was not initially included in the TPP, a US lead trade deal, the Chinese will have to think about joining at some point, according to the director of global operations at General Electric. However, the President of China is encouraging other leaders in Asia to align themselves behind the Free Trade Area of the Asia Pacific, which is a free trade zone that APEC has been on APEC's agenda for a long time.
Countries turn to AIIB as Other Banks Remain Stagnant
Although the BRICS Bank structure is still an effective one, other lending backs, such as the IMF and the World Bank have not adapted to demands for change. The delay in needed reforms has caused countries to turn to other sources, including the AIIB.
The AIIB and a New Asian Financial Order Living Parallel Lives
China’s developing AIIB and Silk Road Initiative have signalled the country’s dominance in Asian and global economies. The article postulates that China will use its developing institutions as opportunities to actively modify international norms of diplomacy and banking. Some warn that the Bretton Woods institutions should stop paying heed to these new institutions, cautioning that they should let the AIIB rise or fall on its own merits. The author further asserts that AIIB’s multilateral structure demonstrates that China is not attempting to undermine world orders, but rather, insert itself into existing geopolitical and diplomatic affairs.
Chinese Leader calls for free, fair trade
Statements made by China’s President, Xi Jinping, at last week’s Asia Pacific Economic Cooperation (APEC) summit. Xi stressed that the region should engage in free and fair trade, which would be made possible under China’s “Free Trade Area of the Asia-Pacific” (FTAAP) trade pact. Xi cautioned that rival groups, such as the US-led Trans-Pacific Partnership (TPP), may cause fragmentation in the region.
India ratified articles of agreement of the Asian Infrastructure Investment Bank
India has ratified its Articles of Agreement for membership in the AIIB. The bank will help India and other member countries to raise resources for infrastructure and sustainable development projects. Membership allows India to play a more prominent role in the governance of a multilateral institution; it is the second largest shareholder in the bank, behind China.
China's role in promoting regional connectivity appreciated: Thai official
In a statement released by Vitavas Srivihok, Deputy Permanent Secretary of the Thai Ministry of Foreign Affairs, Srivihok asserted Thai appreciation of China for their role in promoting regional connectivity in Asia. Through platforms such as the AIIB or Silk Road project, Thai officials anticipate the promotion of trade, investment, and tourism between Thailand and China.
China vows to help push growth in Asia Pacific
China has encouraged members of the Asia-Pacific Economic Cooperation (APEC) to fast-track the agreements for the Beijing-led Free Trade Area of Asia Pacific (TFAAP). Ordinario and Cuaresma write that the marked increase in regional free-trade (both the TFAAP and the US-led Trans-Pacific Partnership) agreements may contribute to fragmentation, which is also a marked concern of China.
Vice President and Chief Administration Officer (Job Vacancy)
The Asian Infrastructure Investment Bank is hiring a Vice President and Chief Administration Officer. Primary responsibilities include leadership of the planning, implementation, and supervision of Human Resources Management, Information Technology, and Facilities & Administration Services. AIIB seeks candidates with 20-25 years of leadership in management, with particular experience in multilateral banking institutions. Applicants from all nations may apply; applications will be accepted no later than December 10, 2015.
President ratifies AIIB Membership Bill
Maldives President, Abdulla Yameen Abdul Gayoom ratified the AIIB Membership Bill, passed by the nation’s Parliament. The act’s main objective is to ensure that the terms of AIIB membership accord with the Constitution of the Republic of Maldives.
AIIB membership approved
Luxembourg’s parliament has approved the country’s accession to the AIIB, according to a statement that the Luxembourg embassy in Beijing sent to the Global Times.
AIIB melding, not moulding, Global Governance
As the Asian region is increasingly shaped by China, it’s become clear that the Chinese also seek greater influence in global governance. While China has taken overt steps to promote inclusivity within the region, they’ve also demonstrated frustration with the possibility of fragmentation in the Asia-Pacific, which Grégoire-François postulates may lead China to join the US-led Trans-Pacific Partnership. Grégoire-François also asserts that the AIIB offers the world a chance to reform existing financial organizations, such as the Bretton Woods institutions, and yet also provides China with the growing space to adopt some western standards. Overall, Grégoire-François stresses that China be given the opportunity to lead change within international financial orders.
We hope that you enjoyed this week's digest. Check back with the blog next Tuesday for another weekly update.
Interested in other IPD updates? Check out our all-team IPD BLOG!