Tag Archive for: Chinese Investments

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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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Argentina in the Asian Infrastructure Investment Bank: achievements and challenges

This article aims to analyze the consequences of Argentina’s entry into the Asian Infrastructure Investment Bank. The structure of the Bank is analyzed, covering its characteristics and the performance of the institution in general terms, the repercussions of Argentina’s entry are considered, contemplating advantages and disadvantages and, finally, the effects associated with joining this institution are considered. to China’s projection on the international stage.

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Approaches in the Sino-Argentina relationship: the incorporation to the AIIB and the Belt and Road Initiative

This document presents an analysis of the background and motivations that led Argentina to become a member of the AIIB and the implications that derive from it, as well as the possibility that Argentina advances in its incorporation into the BRI in the short term. In the same way, the challenges and opportunities that both initiatives represent for the country are addressed.

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We participated in a workshop: Beneficiaries of the extractive sector in Argentina

On March 3 and 4, we participated in the workshop on Final Beneficiaries of Companies in the extractive and energy sector of Argentina, held in the City of Buenos Aires. The event was organized by Opening Extractives (a program co-implemented by EITI and Open Ownership) and the Argentine Journalism Forum (FOPEA).

“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 workshop had among its objectives to raise awareness about the importance of public information of the final beneficiaries, and at the same time, provide resources and materials to increase research, projects and analysis within this field.

In this sense, the training was divided into three modules: first, content and information on final beneficiaries was presented, from the theoretical to the legal and also practical, both nationally and internationally. Those who spoke in this first module were: Andrés Knobel from the Tax Justice Network; María Eugenia Marano, specialist in corporate law; Pamela Morales, Undersecretary of Mining Development of the Government of the Nation; Gonzalo Fernández of the Ministry of Mining Development of the Nation; and Lucía Cirimello from the Extractive Industries Transparency Initiative (EITI).

Secondly, civil society organizations had the opportunity to present their projects related to the theme. In this way, Edgardo Livitnoff (Red Ruido Coordinator) presented progress on the report “Lithium and transparency in Argentina” that we prepared together. For her part, Eugenia Rodríguez (Centro de Economía Política Argentina) shared details about the work of her organization: “The rich of Argentina”.

Finally, the third module consisted of a practical workshop given by Mariel Fitz Patricks, in which tools and resources were provided for approaching final beneficiaries. The journalist helped us, mainly, to access information and how, in this way, to enrich work carried out and to carry out on the subject.
This instance was very fruitful, not only in terms of knowledge and learning, but also in terms of the possibility of meeting peers from other civil society organizations, with whom one could work together in the near future.

 

 

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Author

Maitén de los Milagros Fuma

Contact

Maria Victoria Sibilla, ninasibilla@fundeps.org

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Socio-environmental impacts of projects with Chinese investment in Latin America

This interactive map presents 9 cases of projects that have the participation and financing of Chinese companies, which are monitored by the Regional Group on Financing and Infrastructure (GREFI) and the Regional Coalition for Transparency and Participation in Peru, Argentina, Colombia and Brazil.

The objective is to make known the basic information of the projects, the location, the current situation and the socio-environmental impacts that have generated or that could be generated if they are implemented.

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Follow-up of relations between China and Latin America: exchange of experiences

From the Regional Group on Financing and Infrastructure (GREFI) we held the workshop in 2021: “Follow-up on relations between China and America America: exchange of experiences”. This space brought together different civil society organizations, academia, indigenous leaders and journalists from the region who monitor the relationship between China and Latin America, or have been impacted by investments from the Asian country.

The objective of the space was to identify common issues and key elements of discussion, based on the work and the experience of monitoring and advocacy that serves to promote greater articulation between the actors, identify the differences, limitations and opportunities for joint work.

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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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What does joining the Asian Infrastructure Investment Bank imply for Argentina?

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.

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 March 30, 2021, Argentina’s membership of the Asian Infrastructure Investment Bank (AIIB) was made official. The AIIB officially began its activity in October 2014. It is a new multilateral development bank promoted mainly by China with a focus on investments in infrastructure, especially aimed at emerging countries. Its Asian origin does not limit its actions to a single region, since the Bank has a large number of member countries in other continents and projects financed in South America, Africa and Europe.

The model proposed by China has distinctive features. The dominant feature is that the investments are focused on infrastructure, connectivity and industrialization, marking an important difference with Western development financing entities that, in recent times, have oriented their loans mainly to institutional reforms, health projects, education or fighting against poverty, among others.
In this way, it postulates an interesting alternative for the financing of an infrastructure that is largely in deficit in Latin America and, particularly, in Argentina. For our country, the AIIB represents a new multilateral source of financing for strategic sectors and opens an opportunity to help solve its historical deficits in terms of infrastructure and connectivity. For its part, with still little participation from Latin America, the Asian Bank is consolidating itself as a viable option for the region in light of development goals. To date, five effective Latin American members are reported: Argentina, Brazil, Uruguay, Ecuador and Chile.

From its origins, the AIIB was presented as a different option to the historical Western multilateral development institutions such as the World Bank, the IDB or the International Finance Corporation (IFC). However, the AIIB has implemented a regulatory and operational framework very similar to that of those institutions, including policies for access to information, accountability, and environmental and social regulation to authorize disbursements. In turn, it contemplates cooperation and co-financing with other multilateral banks, such as the World Bank and the Asian Development Bank, adhering to their regulatory frameworks.

Despite this, since its entry into operations the Bank has received criticism from various sectors of civil society and affected communities that have questioned its actions in different development projects and even certain weaknesses in its regulatory framework.

In this sense, the implications that admission to the AIIB may have for Argentina depend largely on the type of relationship that the country establishes with the institution and the way in which it manages to take advantage of the potential financing resources for infrastructure that the Bank can provide. . Likewise, it is necessary to avoid repeating the problems related to public participation, access to information and socio-environmental impacts that have historically been associated with development projects financed by multilateral banks.

Given the general ignorance that exists in the country about this institution, it is important to analyze in depth what the Bank consists of, how it works and what the true implications of Argentine membership may be. To contribute to this objective, from Fundeps we present a report that analyzes part of these questions.

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More information

The incorporation of Argentina to the Asian Infrastructure Investment Bank – Fundeps was approved
Argentina, one step away from becoming a member of the Asian Infrastructure Investment Bank – Fundeps
Are the brothers united? Profiling of the Sino-Argentine relationship in the government of Alberto Fernández – Fundeps
The role of the AIIB in the New Green Silk Road – Fundeps

Author

Camila Victoria Bocco

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Access to information on projects with Chinese financing

Within the framework of the day of access to public information, we presented the document “Access to Information in Argentina. Difficulties and lessons learned accessing information on infrastructure and energy projects with Chinese financing in the country ”.

The People’s Republic of China is the second world economy, with great relevance in international trade and financing and the provision of direct foreign investment, being Latin America, and in particular Argentina, one of the largest recipients of investments in infrastructure of Chinese origin .

Despite this, one of the main challenges that arise when analyzing the growing Chinese financing of projects both in the region and in Argentina, is the lack of transparency and the difficulty in being able to access detailed, accurate and official information about of these projects. Thus, in many cases, the scant information available about the investment amounts, the actors involved, the financing conditions or even the particularities of the projects, make it difficult to carry out a detailed follow-up and monitoring of them and even their impacts. and implications for the country or region where it is carried out.

At the same time, the evaluation of China’s compliance with the principles enshrined in the Universal Declaration of Human Rights carried out by the United Nations in the framework of the Universal Periodic Review (UPR) shows that many development and infrastructure projects of Chinese companies are not compatible with human rights, nor respectful with the environment and the sustainability of natural resources, causing impacts not only economic but also social, environmental and cultural. Hence, the information on these projects must necessarily be transparent and provided in a timely and efficient manner, especially to those communities and populations that are affected by them.

Starting from this panorama, this publication seeks to identify difficulties and lessons learned from the practical experience of accessing information on infrastructure and energy projects with Chinese financing in Argentina. For this purpose, a series of requests for information were made within the framework of the Law on Access to Public Information No. 27,275 in force in the country. Likewise, the experience of access to information from state and non-state sources was evaluated, mainly portals and journalistic media that focus on Sino-Argentine ties.

Based on the identification of some of these existing difficulties when accessing information on the subject, reflections and lessons learned are provided that feed a list of recommendations aimed at strengthening the right of access to information in Argentina.
Transparency and correct and timely access to information are presented as key elements to better understand the growing participation of China in the financing of infrastructure and energy projects in our country. Precisely, access to information, transparency and infrastructure projects should go hand in hand if you want to achieve sustainable and quality infrastructure.

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Contact

  • Gonzalo Roza, gon.roza@fundeps.org

Access to information on projects with Chinese financing

This report seeks to identify difficulties and lessons learned from practical experience accessing information on infrastructure and energy projects with Chinese financing in Argentina.

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