Tag Archives: Asian Infrastructure Investment Bank (AIIB)

China’s New Investment Bank: A Premature Prophecy – By Mark Fleming-Williams

Has the U.S. Lost Its Role as Driver of Global Economy?‏

China’s New Investment Bank: A Premature Prophecy

Global AffairsGlobal Affairs – April 22, 2015 | 08:00 GMT – STRATFOR

By Mark Fleming-Williams

Former U.S. Treasury Secretary Lawrence Summers wrote on April 5 that this month may be remembered as the moment the United States lost its role as the underwriter of the global economic system. His comments refer to the circumstances surrounding China’s launch of a new venture, the Asian Infrastructure Investment Bank (AIIB). Wary of China’s growing ambitions and influence, the United States had advised its allies not to join the institution, but many signed up anyway. The debacle was undoubtedly embarrassing for Washington, but even so, Summers’ prophecy is a bit premature at this stage.

To understand why, one must first understand the basis of the United States’ dominant economic position in the world. At the height of World War II, the heavily indebted United Kingdom signed the Lend-Lease deal, which handed over British naval bases to its American cousins in exchange for financial support. This act was akin to passing the military superpower baton, since it transferred control of the world’s oceans to the United States.   Continue reading

The World Bank and A Changing World – By David Jessop

The World Bank and A Changing World

 By David Jessop

 the-world-bankNews Americas, LONDON, England, Tues. April 14, 12015: It is probably true to say that the average person has little idea what international financial institutions like the World Bank or International Monetary Fund (IMF) do, beyond knowing that they are in some way responsible for having governments impose tough austerity measures and conditions in return for their support.

Notwithstanding, a related issue with wide implications is emerging that warrants close attention in the Caribbean: this is the establishment of what many regard as a future rival to the World Bank in the form of the Chinese-led Asian Infrastructure Investment Bank (AIIB) with a likely different philosophy. Continue reading