E China PPP, Asian Infrastructure Investment Bank & Powerhouse Economics

So, we know that the Belt and Road is an economic necessity for China to grow fast enough to create jobs in a dynamic environment. We know that the Asian Infrastructure Investment Bank (AIIB) was established to fund the Belt and Road as well as other projects in the region. So, we should look at the investor nations that fund the bank.

We can see that there are the regional members like China, India, Pakistan and Israel as listed on the AIIB website. We also can see that there are non-regional members, like most of Europe and the UK that are invested. From the AIIB website we can see that the notable absence is the USA, which is still busy contemplating its own potholes and infrastructure decline.

The many AIIB members that have joined to invest in the bank make it a potentially powerful bank. The website lists news, projects approved and projects considered.

AIIB has an impressive list of Governors of the bank. It appears that most bank business activity is out in the open. Trust or the lack of it, is what will make or break the bank.

The United States government has worried about the size and power of the bank. But the Council on Foreign Relations says it is a medium size world bank, and that the worries from our government are overblown. Do nothing Obama and blowhard Trump (through the National Security Council calling China predatory for bringing on Italy into Belt and Road), have both opposed the bank and the Belt and Road.

But the bank has cooperated with other world banks and is a tenth the size of the World Bank, per employee numbers. The CFR blogger said this:

The AIIB has been highly cooperative with other development banks—to date, two-thirds of the bank’s projects are cofinanced. This percentage is likely to decline over time as the young bank gathers momentum, but will likely plateau around 50 percent, according to a senior AIIB official.

The AIIB intends to branch out to non-regional members with projects under the following guidelines:

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Disclosure: I have no financial interest in any companies or industries mentioned. I am not an investment counselor nor am I an attorney so my views are not to be considered investment ...

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Gary Anderson 1 year ago Author's comment

Update 2: If Donald Trump does not grasp the economic concept of purchasing power parity he will embarrass himself and our nation. We trail China in ppp and that is a crucial weakness facing the USA in a trade war with China.

Gary Anderson 1 year ago Author's comment

Update 1: purchasing power parity coupled with a manufacturing base 5 times larger than the USA means China can make what it needs. We cannot and therefore, we could lose a trade war.

Daniel Robertson 1 year ago Member's comment

Unfortunately, it's not a surprise that China is the strongest. America is still a power to be reckoned with, but they are no longer the world leader.

Gary Anderson 1 year ago Author's comment

We have lost real security, global respect, and traded it for military hardware.