Why The U.S is Making a Mistake by hating on China's AIIB
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| "Myrtle Snow AHS" by Zayla Crocker |
As an economics major who's interested in global economics this confuses me. Logically, you would think after all the other countries promptly ignored America's claims that they "feared" China wouldn't follow environmental or labor safeguards, that the government would at least change their mind and attempt to apologize for their pettiness , and offer to take part in China's ambitious and globally beneficial project as David Dollar , a senior fellow of Foreign policy and Global economy at the Bookings Institution agrees.
Rather than feeling threatened of having their global power being taken away and creating some weak excuses( that none of the other five hundred countries who joined the AIIB were worried about at all , mind you) 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 sensible to think that the U.S could have happily indulged in that kind of monetary support but instead they loudly, and openly displayed their . If they had joined first they could have politely stated their concerns and had one of their own agents investigate the financial transactions of the AIIB. As an added result America wouldn't look shady or seem blatantly threatened by how well the Asian Infrastructure Investment will do.
As any American college student who wants to be involved in international economics would feel, it seem that our government made an emotionally charged decision that could leave the U.S out of major economic changes in the coming future. As most people in the economics field knows, China is a rising star in the global markets, and the AIIB will perhaps only further that role. As an international bank it could prove to run dare I say, better than the banks America helped create. Unlike other institutions the AIIB will offer more loans to countries with ' fewer strings attached' , contrary to others. For example , usually a country needs a loan to fix an energy shortage, or water shortage, or some sort of building project 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( which would probably come out of the citizen's taxes) in order to equal the amount loaned out. The AIIB however would not do that and instead rely on other finance options . (CNBC)
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.Although China says they welcome any participation America will offer they probably don't need (or care for )America's meddling ,which is reiterated in MarketPulse .
Essentially 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, just like the old cliche goes, "If you can't beat them , join them" If (or perhaps a better word is 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 the fear of China's rising power could turn into a reality.
Rather than feeling threatened of having their global power being taken away and creating some weak excuses( that none of the other five hundred countries who joined the AIIB were worried about at all , mind you) 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 sensible to think that the U.S could have happily indulged in that kind of monetary support but instead they loudly, and openly displayed their . If they had joined first they could have politely stated their concerns and had one of their own agents investigate the financial transactions of the AIIB. As an added result America wouldn't look shady or seem blatantly threatened by how well the Asian Infrastructure Investment will do.
As any American college student who wants to be involved in international economics would feel, it seem that our government made an emotionally charged decision that could leave the U.S out of major economic changes in the coming future. As most people in the economics field knows, China is a rising star in the global markets, and the AIIB will perhaps only further that role. As an international bank it could prove to run dare I say, better than the banks America helped create. Unlike other institutions the AIIB will offer more loans to countries with ' fewer strings attached' , contrary to others. For example , usually a country needs a loan to fix an energy shortage, or water shortage, or some sort of building project 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( which would probably come out of the citizen's taxes) in order to equal the amount loaned out. The AIIB however would not do that and instead rely on other finance options . (CNBC)
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.Although China says they welcome any participation America will offer they probably don't need (or care for )America's meddling ,which is reiterated in MarketPulse .
Essentially 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, just like the old cliche goes, "If you can't beat them , join them" If (or perhaps a better word is 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 the fear of China's rising power could turn into a reality.
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