Category: International Organizations

The AIIB and a New Asian Financial Order Living Parallel Lives


Chinese financial diplomacy has reached its coming of age. This new era started when China first announced the introduction of the Asian Infrastructure Investment Bank (AIIB) in 2013. The bank should be operational by late 2015. Combined with other Chinese-led initiatives, an Asian financial order led and shaped by China is slowly emerging in the Asia Pacific. The geopolitical and geoeconomical implications of such a transformation of this magnitude should not be underestimated, both at the regional and global levels.

Business-as-Usual Mindset at the G20 not Ideal


The IMF gave G20 leaders some bad news in Turkey: they are not doing enough to lift growth. The G20 has not implemented enough of their previous commitments and their goal of increasing G20 GDP by US$2 trillion by 2018 is falling short by about US$4 trillion. The problem is that G20 leaders are stuck in a business-as-usual mindset.

Look for Changes When China Takes Over G20 Presidency


After half a decade of low growth, global organizations continue to represent the victors of World War II, not the economic powerhouses of the 21st century. However, change is in the air.  Following a series of coordinated terror attacks in Paris, the Islamic State of Levant left the “city of light” in dark. Only hours later, world leaders began the G20 Summit in Antalya, Turkey.

Calculating the Benefits of Nonprofits


A recent article in The Atlantic highlighted a growing trend in economic aid of giving money directly to the needy, often without strings attached. The spread of smartphones is fueling this, which makes it a breeze to offer a few dollars to someone almost anywhere in the world – not just a person passed on the street.

Following Turkey’s Lead


Turkey’s Prime Minister, Recep Tayyip ErdoÄŸan, has said to judge the G20 Summit in Antalya on Sunday 15 November based on three words: inclusiveness, implementation, and investment.

Holes in the Global Financial Safety Net


One-third of the IMF’s funding will evaporate over the next two years as bilateral loans negotiated in 2012 start to expire. This is a major problem. In a global economy fraught within downside risks, the global financial safety net — essentially the resources provided by the IMF and other institutions reserved for fighting crises and preventing contagion — is too small, too unresponsive and too fragmented.

Hopes are High for the next G20 Meeting


The G20’s tenth summit in Antalya, Turkey on 15–16 November 2015 promises to be a significant success. It will promote more inclusive growth through support for youth employment, small and medium enterprises (SMEs) and women’s empowerment. It will increase investment to reach the G20 goal of raising its economic growth by at least 2 percent above the beginning baseline by 2018.

Tensions Between South Asian States Threaten SAARC


South Asian states established the South Asian Association for Regional Cooperation (SAARC) in 1985 to enhance a peaceful co-existence. SAARC includes eight member countries, namely Bangladesh, India, Pakistan, Maldives, Sri Lanka, Nepal, Afghanistan and Bhutan. According to its charter, the main purpose of SAARC is to enhance collective self-reliance and to develop mutual trust and understanding.

Is the IMF Overstretched?


The Annual Meetings of the World Bank Group and International Monetary Fund (IMF) in Lima, Peru have now concluded. This year’s meetings saw debates on the normalisation of US monetary policy, China’s new growth model, emerging market vulnerabilities and the post-2015 development agenda. There is still no obvious solution to a major thorn in the IMF’s side — the failure to implement long-awaited quota and governance reforms, which would give a greater voice to developing nations.

Realizing the ‘Chinese Dream’ with the AIIB


As of October, fifty-one prospective founding members signed the China-initiated Asian Infrastructure Investment Bank (AIIB) Articles of Agreement, which expects to be operational by the end of 2015. China has generally been cooperative with and supportive of Bretton Woods multilateral institutions. At the same time, it is frustrated that the existing multilateral institutions set the limits for its global ambitions. The slow pace of reforms at the Western-dominated IMF and World Bank prevents China and other emerging economies from playing a bigger role in international political economy.