BRICS countries are reported to be burning their bridges
in dealing with the IMF and World Bank and there is talk that the
Western biased leaning UN will figure in less instrumental ways for
BRICS countries going forward.
In other words, BRICS is into
setting up its own financing system for development among BRICS
countries, just as China did in setting up the Asian Infrastructure
Investment Bank or AIIB for Asian countries to source for development
funds.
As it is, China is already doing massive lending for
infrastructure developments around the world with its BRI projects.
There is no longer any need for poor countries to be beholden to the IMF
and World Bank for aid. The BRI is making the IMF and World Bank more
or less impotent, with China now funding all the developments in Africa,
Central Asia, South-East Asia and even South America. The IMF and World
Bank can look forward to funding the India/Middle East/Europe Corridor
and the Partnership for Global Infrastructure and Investment (PGII),
LOL.
The BRI was a masterstroke by Xi Jinping, allowing China to
recycle its trade surpluses, which would otherwise be diverted towards
investing in risky US$ assets like Treasuries and real estate in the USA
and EU, which could be seized in times of conflict like the assets of
Russia. And such conflict is imminent and just testify to the wisdom of
China thinking far ahead.
Countries like Argentina, Bangladesh
and Sri Lanka that took loans from the IMF and World Bank years ago, are
now not able to extricate themselves and are now stuck by being
beholden to the dictates of these two entities.
Now, isn't that
obvious as to why the USA and the West are so unhappy and keep repeating
the debt trap myth against China over the BRI funding for countries
around the world, especially in Africa. Does that surprise us? It
certainly does not surprise me. This is their modus operandi. When they
fail to compete, they want to demonize or destroy.
Anonymous
BRI and AIIB are direct competitors of IMF and World Bank. That is the reason why so much demonization is being manufactured about debt traps being set by China. Asked the Africans and they tell a different story, or should I say they have a totally different take.
ReplyDeleteThe Africans know that BRI and China are helping them with infrastructures and development. And China, during the period when it was itself dirt poor, was already helping the Africans. So, the Africans know the sincerity of the Chinese. Of course, the extraction of resources that comes with help is a win-win situation, albeit with joint ventures that benefits both sides, unlike the wholesale exploitation of African countries without development and infrastructures to show.
Suffice to say, Africa is lost to the Anglo-Saxon Whites, save for a few dictators still consorting with them to exploit the country.