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incarnate Post time: 2015-4-26 23:53
Why can't AIIB be independent and go solo without associating with the company of IMF and the WB? As ...
You can view the AIIB as a rival of the IMF, or you can view the AIIB as the extension of the IMF in China, depending on your personal belief. However, the agenda of the AIIB can be discerned from the way it acts once it goes into operation. Given that China has diluted its control over the AIIB with accepting so many "founder" members, a portion of the foreign aid and development funds that China would have given to needy countries might just be bottled up by the AIIB bureaucracy, giving these Third World countries even less leverage against the IMF and WB than now.
Thus, the question remains - is the AIIB meant to bypass the bottleneck of the IMF, or is it meant to bottle up the foreign loans that China had previously been extending to needy countries without the constraints imposed by the IMF, but now restrained by the policies and bureaucracy of the AIIB?
Given the slap on the face that China received recently at the IMF meeting in Washington, DC, of not being put on track to becoming the fifth "international reserve currency" that it so fervently wanted, even when the price for admission to this group as a junior partner to teetering Japan was hundreds of billions of dollars in lost export earnings, in excess outflows of dollars for foreign investors who want to repatriate their Yuan assets, and in arming foreign exporters with a lower price of their products in Yuans in China's domestic market, you can tell that the IMF, not the Chinese people, is in charge of the central bank of China.
Capitulation, not competition, is the best description of China's monetary policies.