AIIB – Positive results without doing anything

Many are still quibbling and trying very hard to smear the AIIB with all the fear mongering before it starts to operate. The critics are behaving worse than being sour grapes. Fear this fear that, this bad that bad to frighten everyone trying to join the grouping. How can something be bad when it has not done anything or decided on how it is going to function and the rules that it will play with? The same thing about China, everything is bad, but did China commit any of the crimes so fear and talked about? The real fear is that AIIB will undermine their domination and control of the world and give the poorer country an alternative source of fund to access for their needs. The fearmongers know that their power over the rest of the world is weakening. That is the real threat.

What has AIIB done so far? Nothing. All the fears are pure negative imaginations and fabrications. But before the AIIB starts operating, it has already caused a lot of positive and tangible benefits to Asian countries. The IMF, World Bank and ADB cannot behave as they used to be, acting like warlords and bullying countries to toe their lines or else. AIIB is now a credible competitor and alternative for those countries needing financing to go to. Yes there is an alternative and with competitive terms. No more arm twisting to yield to demands.

The most tangible result is that Japan is offering more financing to compete with the AIIB. It is offering more financial assistance by topping up another US$500b to the ADB and throwing more carrots to countries on a bilateral basis. The IMF and World Bank too would have to act and be more generous to the applicant countries for assistance. Trying to play hard ball is no longer acceptable. The needy countries would say keep your money, we will go to AIIB.

The third positive development is that Asian countries would be less dependent on the American and Japanese controlled financial institutions for aid. It would give them a lot more freedom to act without having to please these warlords. There must be a greater sense of relief among Asian countries and they could push the IMF, World Bank and ADB to offer better terms than AIIB if they want to remain in the game. No more blackmail and ransom and to swallow bitter pills like during the Asian financial crisis.

How’s that for the achievements of the new kid on the block, and it has not even started its business. When it starts to dole out its funds, and with promise of more funds, the playing field will not be the same again. And there is also a twin brother in the BRICS Bank to offer similar loans to challenge the domination of the IMF and World Bank.