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Infrastructure, Banking, Energy, Pipelines, Maritime and Economic Development
Connections Across Continents
- 21st Century Shifts as Investment Moves in New Directions
Via Strategic Demands / An Eurasian Great Game, Eurasia Strategy, One Belt, One Road, New Silk Road — call it what you will. The eyes of the West are opening. Alternatives to and for the Eurodollar and Petrodollar are real, markets are shifting with new alliances. Yuan time. Next moves are strategic plays...
Asian Infrastructure Investment Bank (AIIB)
The Asian Infrastructure Investment Bank (AIIB) is an international financial institution focused on supporting infrastructure construction. The bank was initiated by the government of China and supported by 49 other countries from Europe, Oceania, Africa and South America as members. AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian Development Bank (ADB), which are regarded as dominated by developed countries like the United States. The United Nations has addressed the launch of AIIB as "scaling up financing for sustainable development" for the concern of Global Economic Governance.
Shanghai Cooperation Organization, Regional to Continental
The annual Shanghai Cooperation Organization summit convened in September. With origins as a regional security organization, the SCO mainly focused on security issues, from counterterrorism to Afghan stability, but also touched on economic cooperation. And in a major step forward in expanding its regional clout, the SCO finalized procedures for taking in new members -- India, Pakistan, and Iran first on the list.
When completed, like the ancient Silk Road, it will connect three continents: Asia, Europe, and Africa. The chain of infrastructure projects will create the world’s largest economic corridor, covering a population of 4.4 billion and an economic output of $21 trillion...
After failed attempts by the U.S. to persuade allies against joining the bank, the U.S. reversed course, and now says that it has always supported the project, a disingenuous position considering the fact that U.S. opposition was hardly a secret. The Wall Street Journal reported in November 2014 that “the U.S. has also lobbied hard against Chinese plans for a new infrastructure development bank… including during teleconferences of the Group of Seven major industrial powers.
The Huffington Post’s Alastair Crooke had this to say: “For very different motives, the key pillars of the region (Iran, Turkey, Egypt and Pakistan) are re-orienting eastwards. It is not fully appreciated in the West how important China’s “Belt and Road” initiative is to this move (and Russia, of course is fully integrated into the project). Regional states can see that China is very serious indeed about creating huge infrastructure projects from Asia to Europe. They can also see what occurred with the Asia Infrastructure Investment Bank (AIIB), as the world piled in (to America’s very evident dismay). These states intend to be a part of it.”
Buttressing this effort, China plans on injecting at least $62 billion into three banks to support the New Silk Road. The China Development Bank (CDB) will receive $32 billion, the Export Import Bank of China (EXIM) will take on $30 billion, and the Chinese government will also pump additional capital into the Agricultural Development Bank of China (ADBC).
The New Silk Road / Belt & Road Initiative
• https://en.wikipedia.org/wiki/Maritime_Silk_Road | Maritime Silk Road
• https://en.wikipedia.org/wiki/Eurasian_Economic_Union Eurasian | Economic Union
• http://thediplomat.com/2014/05/chinas-new-silk-road-vision-revealed/ | "New Silk Road"
• http://thediplomat.com/2014/09/china-pushes-maritime-silk-road-in-south-southeast-asia/ | China Pushes 'Maritime Silk Road' in South, Southeast Asia
• http://www.cfr.org/asia-and-pacific/building-new-silk-road/p36573 | The Council on Foreign Relations Tracks Developments and Competition
Dollars, Petrodollars, Eurodollars heads up, here's Yuan
• http://www.cnbc.com/id/102566589 / July 2015
China's foray into global finance is causing nervousness on Wall Street while helping to exemplify how dysfunctional Washington has become.
The Asia Infrastructure Investment Bank is positioning itself as an Asia-centric alternative to the World Bank and International Monetary Fund, even though the head of the World Bank on Tuesday tried to cast the AIIB as a partner, not a rival.
However, some prominent U.S. voices recently have been expressing alarm both at the AIIB's growth, and its ability to attract U.S. allies even though the Obama administration has been seeking to discourage membership. The U.S. holds the largest voting bloc in the IMF/World Bank structure, but has not signed on to the China effort.
With the addition of Iran and the United Arab Emirates, the roster of prospective AIIB members has grown to 35, according to the Xinhua News Agency. In addition to multiple Asian countries—Singapore, Sri Lanka and Vietnam to name three—the amount of European countries is on the rise. Germany, France and Italy are on board for when the bank is officially chartered later in the year, and outside the region Australia just joined as a high-profile partner, despite the White House's wishes.