The US has created another awkward situation. Recently the American government stubbornly opposed the creation of China's Asian Infrastructure Investment bank. They even went as far as trying to covertly sway other countries from joining the AIIB , much like how mean girls would try to get everyone in school to shun a girl they didn't like. However America's opposition was dutifully ignored as everyone, except for loyal Japan, joined the AIIB. America is now stuck, looking petty and trying trying to maintain the facade that they support the AIIB while
not admitting that they just may have made a sad mistake.
Recently the US government declared a backhanded truce with China, hoping to put the semi embarrassing ordeal behind them. The
"truce" also made sure that China would continue to place funds into the World bank and other American influenced institutions. Although China says they welcome any participation America will offer they probably don't need (or care for )America's help which is reiterated in
MarketPulse .
A few months back, America stated that the opposition of the AIIB came from concerns about environmental, and social safeguards however most economists and news sources stated it came from the U.S feeling that their influence in the global economy would be threatened by the AIIB , and it will.
Be that as it may ,Economists across the globe and even in
America, proclaim that the AIIB will be an overall benefit to the world and perhaps run better than the world bank. Meaning, that more loans will be offered to countries with ' fewer strings attached' , unlike the American influenced World Bank. For example , Usually a country needs a loan to fix an energy shortage, or water shortage, some sort of building projects like for roads and hospitals . Other institutions ( *cough* The World Bank) would require the cost of materials used like bricks or asphalt or water treatment to be raised substantially in order to equal the amount loaned out. The AIIB however would not do that and instead rely on other finance options .
(CNBC)
The AIIB hasn't even funded it's first project yet and it's already turning out to be a better option than the old institutions . The main goals of the AIIB are to help out undeveloped Asian countries however a benefit for one is essentially a benefit for all in dealing with global economics even though the U.S didn't see it that way in the beginning.
Rather than being what some would call " a hater" The U.S should have kept their feelings to themselves and offered to be the first one to join the AIIB . and why? The benefits would have been tremendous . For instance the U.K was one of the first European countries to join the AIIB and the result? A
reported 60 billion dollar deal from China covering The U.K's industries of retail, finance, energy and aerospace will signed. Also China will be financially backing the U.K's first nuclear factory in twenty five years. Now of course , just because someone joined doesn't mean their privy to this kind of monetary benefit , but China has been investing an awful lot money in developed nations particularly the U.S.
Business Spectator states that reports have shown that over the last five years an estimate of 46 billion have been spent on projects in the U.S So who's to say that a billion dollar deal wouldn't have come America's way if they had joined?
Naturally, it's logical to think that the U.S could have happily indulged in that kind of support but instead they were a bit rude in openly shutting down the development of the AIIB. If they had joined first and then covertly investigated later America wouldn't be stuck looking like a hater and there might possibly have been some agreement or contract that would have helped out the economy as well.Presently,despite the niceties, China could essentially care less about the U.S's assistance in these grand global plans that include creating substantial trade throughout Eurasia and Africa that could result in the development of poor countries.
In essence America fears China's rising power in the economic sector, however if the government really wanted to stop it , maybe they should have allied themselves with the AIIB. If (or when) the Asian Infrastructure Investment Bank turns out to be as good as everyone is predicating it to be , American influenced institutions could be on the decline and that fear could turn into a reality.
.
#/media/File:Batman_villains_The_Penguin_The_Riddler_The_Joker_1967.JPG){kind=link}
