European countries to join AIIB :
A boost to China's "One belt One road" initiative
1)
European countries, including Germany, France, Britain, and now
Russia along with Australia agreed to join the China-led Asian Infrastructure
Investment Bank (AIIB).
Ø It has imparted a new sense
of realism to Beijing’s Silk Road plans.
2)
Consequences of this
move :
i.
If implemented, it is likely to shift the global balance of
economic power towards Eurasia.
ii.
The decision of key European powers along with South Korea to join
the bank, overriding strong objections from the United States, has split the
Atlantic Alliance on this issue.
3)
What is "One belt
One Road"?
a)
China’s “One belt One road” initiative envisages connecting the
Pacific coast with Europe by an extensive transport, cyber and energy network
along the Eurasian corridor.
b)
Interlinked with the land route, China wants to establish the 21st century Maritime Silk Road (MSR) , which would connect
China with a string of ports, from where would radiate economic corridors, in
Southeast Asia, South Asia, West Asia and Africa. The MSR would terminate in Europe.
4)
China advocate, in reference to the AIIB, the creation of a
regional hub for financial cooperation, apart from strengthening pragmatic
cooperation in monetary stability, investment, financing, credit rating and other
field.
5)
China consider this as the emergence of a multi-polar world.
6)
China’s ‘One belt One Road’ initiative requires massive
investment, including finance from the $40 billion Silk Road fund, which the
Chinese have separately established.
7)
‘One Belt One Road’ initiative, backed by a solid financial
institutional network, once implemented, is expected to accelerate the shift of
geo-economic power away from the United States, towards Eurasia.
Ø More than 4.4 billion
people, or 63 per cent of the global population countries, are expected to benefit
from China’s game changing plans.
-------------------------------------------------------------------------------------------------------------------------------------
No comments:
Post a Comment