Tag Archive for: AIIB

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Latin American organizations urge the Asian Bank to fulfill its commitment to sustainable development.

As the Asian Infrastructure Investment Bank (AIIB) holds its annual meeting in Beijing this week, Fundeps, along with partner organizations from Latin America and other regions, supports the call for this institution to fulfill its promise to promote inclusive, environmentally sustainable development with effective civil society participation.

In an open letter (available here) to AIIB President Jin Liqun, a group of Latin American organizations presented a series of observations and proposals on how the Bank can better support initiatives to address the climate, environmental, and economic challenges affecting the region by developing a more strategic approach, supporting innovative strategies in the transport sector, and promoting a just energy transition, based on greater transparency and strengthening civil society participation.

The open letter, which is also supported by partner organizations in Europe and other regions, highlights the need for a new paradigm that guides infrastructure investments to effectively promote transparent, sustainable, inclusive, and climate-resilient infrastructure, moving beyond the conventional approach focused on top-down, planned, and imposed megaprojects. According to the Latin American civil society organizations, “new infrastructure should not negatively affect ecosystems or the habitats of local populations, especially the most vulnerable and marginalized groups… On the contrary, infrastructure investments should prioritize the quality of life of local communities and guarantee the integrity of ecosystems.”

“We have no doubt that incorporating the perspective of civil society in a structured manner can help the Bank identify integrated solutions better aligned with its climate commitments, anticipate social and environmental risks at an early stage, and improve the results of its interventions in the region,” said Daniel Lopes Faggiano, Executive Director of the Maíra Institute and co-author of the public statement. In the open letter, we conclude by noting that establishing spaces that promote the participation of civil society organizations could become a transcendental legacy of the outgoing AIIB President, Jin Liqun, whose term expires in January 2026.

About the Asian Infrastructure Investment Bank (AIIB)

The AIIB was established in 2016 under the leadership of China, with the aim of promoting infrastructure projects in Asia and other regions of the world. The Bank began operations with 57 founding members, an initial capital of US$100 billion, and its headquarters in Beijing. It currently has 110 members, of which 100 are “full members”—both regional members from Asia and Oceania and other regions—and 10 potential members. Full members from Latin America include Argentina, Brazil, Chile, Ecuador, El Salvador, Peru, and Uruguay.

 

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Contact

Gonzalo Roza, gon.roza@fundeps.org

 

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How to access information and make a complaint to the AIIB and the Belt and Road Initiative?

In recent years, Argentina joined two initiatives promoted by China of great potential and relevance: the Asian Infrastructure Investment Bank and the Belt and Road Initiative. In this document we explain how to request information from these institutions and how to make complaints when their projects affect the rights of communities.

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The Asian Infrastructure Investment Bank and the Belt and Road Initiative: what are they?

In recent years, Argentina joined two initiatives promoted by China of great potential and relevance: the Asian Infrastructure Investment Bank and the Belt and Road Initiative. In this document we explain what they are and why we are interested in knowing them.

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China-driven financial initiatives: access to information and accountability

Much of what happens in Argentine foreign policy is linked to China, hand in hand with its growing global influence, which is why it is important to know initiatives such as the Asian Infrastructure Investment Bank and the Belt and Road Initiative. , in which China is its main promoter. At Fundeps we share documents with basic and accessible information about these initiatives, placing emphasis on practical resources to access information and their accountability mechanisms.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The Belt and Road Initiative (BRI) represents China’s flagship global connectivity and infrastructure development program that aims to boost trade and new political and economic ties with participating nations, primarily emerging and “developing” countries. ”. For its part, the Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank created in 2015 at the initiative of China that currently has more than 100 member countries around the world and finances projects in other regions, such as Latin America and the Caribbean or Africa.

The AIIB is closely linked to the Belt and Road Initiative not only because the processes of formation of these two instruments were promoted by Chinese President Xi Jinping and occurred simultaneously, but also because the AIIB constitutes the main tool financing for projects that are part of the IFR. Likewise, both are part of a process of geopolitical reconfiguration where the center of gravity of the world economy turns towards the Asia Pacific. Furthermore, both have been the subject of criticism since their inception in relation to the negative environmental and social impacts that their projects have generated and the lack of transparency, accountability and citizen participation in their design and implementation.

The role that the AIIB and the IFR play – and will play in the medium-short term – in Argentina is much closer and more tangible than we believe: although they seem like initiatives or actors that are distant and unrelated to the local reality, through Their actions promote or facilitate the implementation of large infrastructure and energy projects in the country that, in turn, have – or may have – a direct or indirect impact on people’s daily lives and may affect social and/or environmental rights. , especially from the populations and communities linked to the projects. In fact, there is already a first approved project in Tierra del Fuego that will be financed by the AIIB for an amount of 65 million dollars and, within the framework of the IFR, there are various projects committed in our country. For this reason, it is essential to monitor them, know how to access information about the projects and how to file a complaint with the Bank’s accountability mechanism.

In addition to this and given the frequent lack of transparency of Chinese banking and the general lack of knowledge about it, at Fundeps we share these updated brochures with summarized information about the AIIB and the Belt and Road Initiative. We also added instructions on how to make a complaint to the Project Affected Persons Mechanism (PPM), the AIIB’s accountability mechanism.

How does the situation influence?

During the current government of Javier Milei, diplomatic ties between both countries have been strained due to the reconfiguration of the new administration’s foreign policy, with greater geopolitical alignment with the United States and the West. We can also mention certain measures such as the decision of the Argentine government to visit the Chinese space base in Neuquén or renounce Argentina’s membership in the BRICS bloc, the brake on infrastructure works with Chinese financing or even statements by the President himself or of Foreign Minister Diana Mondino. This has been reflected, among other things, in the difficulties in the negotiations to renew the swap with China – currency exchange between the central banks of both countries – or in the weakening of the commercial link, which has moved China to fourth place. place as Argentina’s trading partner, currently positioning itself behind Brazil, the European Union (EU) and the United States.

However, it is worth highlighting that the link between Argentina and China continues to be very important, and will continue to be so in the future, regardless of the government in power.

A bilateral relationship of a strategic nature

The bilateral relationship between the People’s Republic of China and Argentina has been strengthening in recent decades and has acquired greater relevance since the 2000s, becoming established, almost 10 years ago, as a Comprehensive Strategic Association. It includes an expansion in the areas of cooperation and covers not only economic and financial aspects but also political, commercial, technological, cultural, health and investment matters. This strengthening of ties was reflected in the incorporation of Argentina to the two initiatives mentioned here.

The signing of a Joint Declaration in 2004 and the Comprehensive Strategic Association in 2014 have been, at the diplomatic level, two unavoidable antecedents to understand Argentina’s entry into the IFR and the AIIB. Given the continuity and long-term projection of the Sino-Argentine link, it can be said that Argentina’s entry into the IFR (in 2022) and the AIIB (from 2021, as a non-regional member), are consistent with the rapprochement and consolidation of bilateral relations since their normalization in 1972 and crystallize this long-standing bond between both countries, posing both opportunities and challenges for our country.

 

 

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Belt and Road Initiative (or “New Silk Road”)

Infographic with basic and simple information about the Belt and Road Initiative (or “New Silk Road”).

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Report on the first AIIB project in Brazil: renewable energy and infrastructure

The purpose of the following report is an updated approach to the first AIIB project in Brazil, including its political, economic and environmental dimensions. First, an analysis is carried out on the main characteristics of the project, context and actors involved; then, we proceed to analyze the implications for Brazil of receiving such financing; and finally, the main environmental consequences are exposed.

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Report on the first AIIB project in Ecuador

The “CONAFIPS COVID-19 Credit Line project” has made Ecuador the first Latin American country to receive a Latin American loan from the Asian Infrastructure Investment Bank. This report reviews the project, emphasizing its fundamental characteristics, context, environmental and social standards, and main criticisms and concerns about it.

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Argentina in the AIIB

Since 2021, Argentina officially integrates the Asian Infrastructure Investment Bank. For our country, the AIIB represents a new multilateral source of financing for strategic sectors such as infrastructure, energy, telecommunications and transportation, among others. However, the AIIB is a little-known bank. How does it work and what are the implications for the country of joining this institution promoted mainly by China? We present a new report with the analysis.

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The incorporation of Argentina to the Asian Infrastructure Investment Bank was approved

Today, October 28, the Argentine Chamber of Deputies approved the bill to enter our country into the Asian Infrastructure Investment Bank. Thus, the incorporation of Argentina as a Non-regional Member to the bank is made effective.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

On September 3, the Argentine Senate approved the bill for the entry of the Argentine Republic to the Asian Infrastructure Investment Bank -AIIB-. The approval of the law was carried out today, October 28, in the Chamber of Deputies by 235 positive votes and 4 negative votes.

The management for Argentina to form part of the Bank began in the first Forum ‘One Strip and One Route for International Cooperation’ held in 2017, in which the previous government management affirmed the country’s intention to be part of the AIIB and the The Bank’s Board of Directors approved the admission of Argentina to the Institution.

The Asian Bank was born in 2015 at the initiative of China and began operating in January 2016. It has 102 members from different regions of the world. AIIB is a multilateral financial institution and, between completed and ongoing projects, has already financed 138 infrastructure projects.

For Argentina, joining the AIIB means an additional alternative to access financing for infrastructure works through a new multilateral organization. However, although it has been proposed as a different alternative to Western multilateral banking, the AIIB does not escape the logic, operation and even institutional structure that characterizes institutions such as the World Bank, the International Finance Corporation or the Inter-American Development Bank. . In this sense, from civil society, criticisms and questions have been raised regarding the transparency, accountability and environmental sustainability of the projects financed by the bank, which should be taken into account by Argentina when receiving financing of this institution.

More information

Contact

Gonzalo Roza, gon.roza@fundeps.org

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The role of the AIIB in the New Route of the Green Headquarters

The article proposes an approach to financing the Silk Road and the Silk Road Initiative, trying to analyze the extent to which the recently created Asian Infrastructure Investment Bank (AIIB) plays as a “financial engine” of the Initiative, It represents (or not) an opportunity for the objective of greater environmental and social sustainability in the infrastructure projects carried out within the framework of the “New Green Silk Road”.

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