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WEEKLY DIGEST: May 16-22, 2016

5/28/2016

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​AIIB in Myanmar

AIIB officials to visit Myanmar in preparation of infrastructure development projects the development bank intends to get off the ground before the end of the year. However, AIIB officials have not yet met with the new government of Myanmar to discuss development plans.


ADB, AIIB Collaboration Continues

The Asian Development Bank (ADB) is co-financing the AIIB's first project, which will involve the construction of roads and water projects. Officials in the ADB have been assisting the AIIB throughout its infancy and into its establishment. This collaborative relationship is a positive note to start out their relationship. There has been concern that there would be competition involved in this relationship,  as Chinese exclusion from ADB leadership is rumored to be an incentive for the AIIB's creation. 


Thailand Refuses AIIB Funding Due to Strings Attached

Silk Road initiative intended to build economic ties across Asia.
Thailand, which lies in the middle of the Silk Road, has refused AIIB funding for a transportation project, shaking up President Xi's vision of regional cooperation. The AIIB was turned down due to the strings attached to their funding - the Chinese requested land rights in Thailand near the project, a railroad. 

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New Philippine Leadership may link up with China 

Previous Phillipine leadership has aligned with the US in balancing against China, but that may change if aspiring leader Duterte becomes president. Duterte is expected to favor a policies more similar to the Chinese than US policies and he seems to be in favor of AIIB involvement in the Philippines. 


AIIB Investments to Benefit the ASEAN Economic Community 


Doubts cast on the financial benefits of the ASEAN Economic Community (AEC), which seeks to establish a common market among member countries, have lessened recently.  AIIB investments in ASEAN countries may boost ASEAN as an asset class and increase the returns for members of the group. 


India Request AIIB Support for New Ports


New Delhi has requested AIIB assistance for two new ports: a large port at Colachel and a satellite port of JNPT (Maharashtra). India is not prepared by itself to fund these two major projects. 
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