The World Bank acquires a competitor

China Yuan
China Yuan

With rapid speed Beijing establishes its own World Bank with funds worth 100 billion dollars, which will position antagonistic to the existing institution. Moreover, as reported in the publications of the Financial Times, China is interested to compete the Asian Development Bank, as it believes that these bodies are under American influence. Lately, according to sources cited by the British newspaper, conducted talks between Chinese officials and officials of other countries. In this context it was proposed to double the capital of the new bank from 50 to 100 billion dollars.

World Bank

World Bank

With the data available so far, 22 countries of the wider region, including some in the Middle East, have expressed their intention to participate in the creation of a new multilateral lending institution. The under development institution would be named Asian Investment Bank and Infrastructure. At an early stage, the Bank will focus on manufacturing and the revival of the historic Silk Road, which for long periods of history has been connecting China and the Far East to Europe. This road will, of course, have all the modern requirements, while the first step will be the direct connection of Beijing to Baghdad through a railway line. It is worth noting that the bulk of funds for planned investments will come from Beijing.

China Yuan

China Yuan

The China’s determination to take the initiative to establish a counter power in the World Bank can be justified. For several years, claiming a stronger role in decision making at global institutions like the International Monetary Fund, the World Bank and the Asian Development Bank. Well informed sources point out, in conclusion, the Financial Times: China realizes that they can not afford to achieve anything significant from the World Bank or the International Monetary Fund. Therefore, it was a natural progression to set up its own World Bank and the controls. In addition, interest and other Asian countries, but even if this were not so, China would go alone.

China-World Bank

China-World Bank

The disclosure of the plans of China on the Asian Infrastructure and Investment Bank, which will operate in competition with the Old Bank coincides with the UN report. On this basis, provided that the investments this year the country will override those directed towards it. This happens because more and more Chinese companies move abroad. The result is to move towards the end of the season, during which large investments eiserrean profusely in China. The Asian Infrastructure and Investment Bank will further call into question not only the validity of the Old Bank and the Asian Development Bank. It has headquarters in Manila, according to Beijing, influenced also by Japan. If not, the new bank has 100 billion dollars to invest, can be contrasted to the 165 billion dollars of the Asian Development Bank. In this the largest shareholders are Japan and the United States, and since its inception in 1966 and then permanently keep Japanese president. According to sources, the purpose of China’s new organization is to exclude the U.S. and Japan.

Asian Development Bank

Asian Development Bank

By Nicole P.

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