Advertisement

Introduction

  • Alvaro MendezEmail author
  • Mariano Turzi
Chapter
  • 5 Downloads

Abstract

Latin America and the Caribbean (LAC) is the only global South region wherein just one country, Ecuador, has become a full member of the AIIB, in November 2019 after 22.5 months. Seven more countries are “prospective” members, in order of joining: Brazil, Peru, Venezuela, Bolivia, Chile, Argentina, and Uruguay. This chapter introduces the research question that has guided this book: Why have the Latin American prospective members of the AIIB been so unsuccessful at complying with the membership-completion process? The AIIB seems to be able to finance the very expensive infrastructure LAC needs so badly. Why then have the LAC countries been so negligent? Can this illuminate the broader issue of why is it so hard to get physical infrastructure financed in the region?

Keywords

AIIB Latin America China International development International political economy 

References

  1. AIIB. 2014. “The Memorandum of Understanding on Establishing the Asian Infrastructure Investment Bank (AIIB) was signed in Beijing.” news release, 24 October 2014, https://www.aiib.org/en/news-events/news/2015/20150408_004.html.
  2. AIIB. 2016a. “2016 Annual Meeting.” news release, 25 June 2016, https://www.aiib.org/en/news-events/events/2016-annual-meeting/index.html.
  3. AIIB. 2016b. Manual for Accession to the AIIB. Beijing, China: Office of the Corporate Secretary – Asian Infrastructure Investment Bank.Google Scholar
  4. AIIB. 2017a. “AIIB Approves Membership of Cook Islands, Vanuatu, Belarus and Ecuador.” news release, 19 December 2017, https://www.aiib.org/en/news-events/news/2017/20170616_003.html.
  5. AIIB. 2017b. “The Asian Infrastructure Investment Bank and the IDB Group Expand Ties.” news release: Asian Infrastructure Investment Bank, 16 May 2017, https://www.aiib.org/en/news-events/news/2017/20170516_001.html.
  6. AIIB. 2019a. 2019 Annual Meeting. https://www.aiib.org/en/news-events/events/annual-meeting/overview/index.html. Accessed 30 June 2019.
  7. AIIB. 2019b. AIIB Governance: Board of Directors. https://www.aiib.org/en/about-aiib/governance/board-directors/index.html. Accessed 16 June 2019.
  8. AIIB. 2019c. Approved Projects. https://www.aiib.org/en/projects/approved/index.html. Accessed 10 November 2019.
  9. AIIB. 2019d. Members and Prospective Members of the Bank. https://www.aiib.org/en/about-aiib/governance/members-of-bank/index.html. Accessed 11 November 2019.
  10. AIIB. 2019e. Partnerships. https://www.aiib.org/en/about-aiib/who-we-are/partnership/index.html. Accessed 16 June 2019.
  11. AIIB Board of Governors. 2017a. Admission of the Bolivarian Republic of Venezuela to Membership in the Asian Infrastructure Investment Bank. Resolution 34. (21 March 2017). (Accessed 19 December 2018). https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  12. AIIB Board of Governors. 2017b. Admission of the Plurinational State of Bolivia to Membership in the Asian Infrastructure Investment Bank. Resolution 36. (12 May 2017). (Accessed 19 December 2018). https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  13. AIIB Board of Governors. 2017c. Admission of the Republic of Argentina to Membership in the Asian Infrastructure Investment Bank. Resolution 46. (16 June 2017). (Accessed 19 December 2018). https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  14. AIIB Board of Governors. 2017d. Admission of the Republic of Chile to Membership in the Asian Infrastructure Investment Bank. Resolution 37. (12 May 2017). (Accessed 19 December 2018). https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  15. AIIB Board of Governors. 2017e. Admission of the Republic of Ecuador to Membership in the Asian Infrastructure Investment Bank. Resolution 54. (19 December 2017). (Accessed 13 June 2019). https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  16. AIIB Board of Governors. 2017f. Admission of the Republic of Peru to Membership in the Asian Infrastructure Investment Bank. Resolution 31. (21 March 2017). (Accessed 19 December 2018). https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  17. AIIB Board of Governors. 2017g. Annual Meeting of the Board of Governors (Summary of Proceedings). (Accessed 20 January 2019). https://www.aiib.org/en/about-aiib/governance/board-governors/.content/index/_download/Summary-of-Proceedings.pdf
  18. AIIB Board of Governors. 2018a. Annual Meeting of the Board of Governors (Summary of Proceedings). (25-26 June 2018). (Accessed 10 May 2019). https://www.aiib.org/en/about-aiib/governance/board-governors/.content/index/_download/Summary-of-Proceedings.pdf
  19. AIIB Board of Governors. 2018b. Extending the Deadline for Prospective Members to Accede to the Bank’s Articles of Agreement. Resolution 68. (18 December 2018). (Accessed 10 June 2019). https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  20. AIIB Board of Governors. 2019a. Extending the Deadline for Prospective Members to Accede to the Bank’s Articles of Agreement. Resolution 89. https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  21. AIIB Board of Governors. 2019b. Admission of the Oriental Republic of Uruguay to Membership of the Asian Infrastructure Investment Bank. Resolution 79. (18 April 2019). (Accessed 11 May 2019). https://www.aiib.org/en/about-aiib/governance/board-governors/index.html
  22. Baijie, An. 2016. Xi says help unconditional. China Daily. (19 November 2016). (Accessed 2 July 2019). http://www.chinadaily.com.cn/world/2016xivisitepc/2016-11/19/content_27426699.htm
  23. Bremmer, Ian. 2019. What Happens Next in Ecuador. Time. (18 October). (Accessed 7 November 2019). https://time.com/5705202/what-happens-next-in-ecuador/
  24. Brown, Justine. 2018. “Free Trade, Yes; Ideology, Not So Much: The UK’s Shifting China Policy 2010-16.” Journal of the British Association for Chinese Studies 8 (1):92–126.Google Scholar
  25. Cámara de Diputados – Chile. 2019. Proyecto de Ley: Aprueba el Convenio Constitutivo del Banco Asiático de Inversión en Infraestructura. Primer trámite constitucional. https://www.camara.cl/pley/pley_detalle.aspx?prmID=13135. Accessed.
  26. Casey, Nicholas, and Clifford Krauss. 2018. It Doesn’t Matter if Ecuador Can Afford This Dam. China Still Gets Paid. The New York Times. (26 December 2018). (Accessed 8 June 2019). https://www.nytimes.com/2018/12/24/world/americas/ecuador-china-dam.html
  27. Dominguez, Jorge I. 2007. “International cooperation in Latin America: the design of regional institutions by slow accretion.” In Crafting Cooperation: Regional International Institutions in Comparative Perspective, edited by Amitav Acharya and Alastair Iain Johnston, 83–128. Cambridge, UK: Cambridge University Press.Google Scholar
  28. Enriquez, Carolina, and Diana Viveros. 2017. El Gobierno busca inversiones en seis países, entre ellos China y EE.UU. El Comercio. (1 September 2017). (Accessed 6 July 2019). https://www.elcomercio.com/actualidad/ecuador-inversion-gira-comercioexterior-estadosunidos.html
  29. Feigenbaum, Evan A. 2017. “China and the World.” Foreign Affairs 96 (1):33–40.Google Scholar
  30. Fornes, Gaston, and Alvaro Mendez. 2018. The China-Latin America Axis: Emerging Markets and their Role in an Increasingly Globalised World. 2nd ed. New York: Palgrave Macmillan.CrossRefGoogle Scholar
  31. Freeman, Carla P. 2019. Constructive Engagement? The US and the AIIB. Global Policy, 10(4), 667–676. doi:10.1111/1758-5899.12764CrossRefGoogle Scholar
  32. Gao, Xuan, and Peter Quayle. 2018. Asian Infrastructure Investment Bank (AIIB). Max Planck Encyclopedia of Public International Law. (Accessed 10 May 2019). https://opil.ouplaw.com/view/10.1093/law-epil/9780199231690/law-9780199231690-e2196
  33. Hilton, Isabel, Jonathan Fenby, and Robert Barnett. 2015. Has Britain Sold Out to Beijing? Foreign Policy. (23 March 2015). (Accessed 10 January 2019). https://foreignpolicy.com/2015/10/23/china-britain-trade-uk-xi-jinping-cameron-nuclear-investment/
  34. Huang, Cary. 2015. ANALYSIS: Britain’s new ‘special relationship’ with China is built on pragmatism. South China Morning Post. (23 October 2015). (Accessed 5 May 2019). https://www.scmp.com/news/china/diplomacy-defence/article/1871449/britains-new-special-relationship-china-built
  35. IDB. 2018. Connecting Latin America and Asia: The Role of AIIB. (24 March 2018). (Accessed 10 June 2019). https://vimeo.com/261658926
  36. Itamaraty. 2018. “Special declaration of santiago of the ii ministerial meeting of the celac-china forum on the belt and road initiative.” news release: Ministry of Foreign Affairs: The Federative Republic of Brazil, 22 January 2018, http://www.itamaraty.gov.br/images/2ForoCelacChina/Declaration-of-Santiago%2D%2DII-CELAC-China-Forum-FV-22-01-2018.pdf.
  37. Jing, Yijia, Alvaro Mendez, and Yu Zheng. 2020. “New Development Assistance in the Making: An Introduction.” In New Development Assistance: Emerging Economies and the New Landscape of Development Assistance, edited by Yijia Jing, Alvaro Mendez and Yu Zheng, 1–18. Basingstoke, UK: Palgrave Macmillan.CrossRefGoogle Scholar
  38. Kato, Kenji. 2017. Ecuador looks to foreign investment. The Japan News. (21 December 2017). (Accessed 12 January 2019). https://global-factiva-com.gate3.library.lse.ac.uk/redir/default.aspx?P=sa&NS=16&AID=9LON003400&an=YOMSHI0020171220edcl00002&cat=a&ep=ASI
  39. Kennedy, Susan, Stewart Ross, R.G. Grant, Joel Levy, and Ros Belford. 2015. Queen Elizabeth II and The Royal Family. Edited by Rob Houston. New York, NY: DK – Penguin Random House.Google Scholar
  40. Lichtenstein, Natalie. 2018. A Comparative Guide to the Asian Infrastructure Investment Bank. Oxford, UK: Oxford University Press.Google Scholar
  41. Lichtenstein, Natalie. 2019. “AIIB at Three: A Comparative and Institutional Perspective.” Global Policy 10.4 (2019): 582–586.CrossRefGoogle Scholar
  42. Long, Gideon. 2017. Lenín Moreno unpicks Ecuador’s leftwing legacy. Financial Times. (29 December 2017). (Accessed January 12, 2019)Google Scholar
  43. MEFT – Chile. 2018. “Gobierno se reúne con delegación del Banco Asiático de Inversión e Infraestructura para analizar ingreso de Chile a la entidad.” news release: Ministerio de Economía, Fomento y Turismo de Chile, 22 March 2018, https://www.economia.gob.cl/2018/03/22/gobierno-se-reune-con-delegacion-del-banco-asiatico-de-inversion-e-infraestructura-para-analizar-ingreso-de-chile-a-la-entidad.htm.
  44. Mendez, Alvaro. 2018. The Asian Infrastructure Investment Bank comes knocking on Latin America’s door: is anyone home? LSE Latin America and the Caribbean Centre Blog. (27 April 2018). (Accessed 20 June 2019). http://blogs.lse.ac.uk/latamcaribbean/2018/04/27/the-asian-infrastructure-investment-bank-comes-knocking-on-latin-americas-door-is-anyone-home/
  45. Mendez, Alvaro. 2019. “Latin America and the AIIB: Interests and Viewpoints.” Global Policy:1–6. doi:  https://doi.org/10.1111/1758-5899.12733.CrossRefGoogle Scholar
  46. Mendez, Alvaro, and Chris Alden. 2019. “China in Panama: From Peripheral Diplomacy to Grand Strategy.” Geopolitics:1–23. doi:  https://doi.org/10.1080/14650045.2019.1657413.
  47. MIREMH. 2016. “III Seminar on South-South Financial Cooperation will analyze the role of the new development bank in the world.” news release: Ministerio de Relaciones Exteriores y Movilidad Humana de Ecuador, 29 November 2016, https://www.cancilleria.gob.ec/en/iii-seminar-on-south-south-financial-cooperation-will-analyze-the-role-of-the-new-development-bank-in-the-world/.
  48. MIREMH. 2018a. “Comunicado Oficial.” news release: Ministerio de Relaciones Exteriores y Movilidad Humana del Ecuador, 14 December 2018, http://www.cancilleria.gob.ec/en/ecuador-and-china-establish-integral-strategic-partnership/.
  49. MIREMH. 2018b. “Ecuador se adhiere a la iniciativa china de la Franja y la Ruta como resultado de la visión “pragmática” del gobierno.” news release: Ministerio de Relaciones Exteriores y Movilidad Humana: Gobierno de la Repúplica del Ecuador, 14 December 2018, https://www.cancilleria.gob.ec/ecuador-se-adhiere-a-la-iniciativa-china-de-la-franja-y-la-ruta-como-resultado-de-la-vision-pragmatica-del-gobierno/.
  50. MIREMH. 2019. “Canciller Valencia se reúne con Vicepresidente chino y Canciller Wang Yi en el marco de VIII consultas diplomáticas.” news release: Ministerio de Relaciones Exteriores y Movilidad Humana de Ecuador, 1 November 2019, https://www.cancilleria.gob.ec/canciller-valencia-se-reune-con-vicepresidente-chino-y-canciller-wang-yi-en-el-marco-de-viii-consultas-diplomaticas/.
  51. PEODSP. 2018. Entrevista exclusiva con Carlos Larrea, embajador de Ecuador en China: “Al igual que China, nosotros también queremos crecer en cuanto a la calidad de vida de nuestros ciudadanos”. People's Daily & People's Daily Online. (12 April 2018). (Accessed 6 July 2019). http://spanish.peopledaily.com.cn/n3/2018/0412/c31621-9448573.html
  52. Perlez, Jane. 2014. U.S. Opposing China’s Answer to World Bank. New York Times: A1. (9 October 2014). https://www.nytimes.com/2014/10/10/world/asia/chinas-plan-for-regional-development-bank-runs-into-us-opposition.html
  53. Presidencia-Ecuador. 2016. “China refuerza su papel estratégico en Ecuador y la región.” news release: Presidencia de la República del Ecuador, 17 November 2016, https://www.presidencia.gob.ec/china-refuerza-su-papel-estrategico-en-ecuador-y-la-region/.
  54. Reuters. 2018. Ecuador clinches $900 mln loan from China -Moreno. Reuters. (12 December 2018). (Accessed 6 July 2019). https://www.reuters.com/article/ecuador-debt-china/ecuador-clinches-900-mln-loan-from-china-moreno-idUSL1N1YH0YJ
  55. Ripley, Brian. 2019. From Rafael Correa to Lenín Moreno: Ecuador’s Swing to the Right. Council on Hemispheric Affairs. (2 July 2019). (Accessed 6 July 2019).www.coha.org/from-rafael-correa-to-lenin-moreno-ecuadors-swing-to-the-right/
  56. SEC. 2019. ASIAN INFRASTRUCTURE INVESTMENT BANK: Registration Statement. U.S. Securities and Exchange Commission. (9 May 2019). (Accessed 11 June 2019). https://www.sec.gov/Archives/edgar/data/1733112/000119312519145194/d644843d424b1.htm
  57. The Economist. 2013. An Asian infrastructure bank: Only Connect. The Economist. (4 October 2013). (Accessed 15 May 2019). https://www.economist.com/analects/2013/10/04/only-connect
  58. UK Government. 2015. “UK announces plans to join Asian Infrastructure Investment Bank.” news release, 12 March 2015, https://www.gov.uk/government/news/uk-announces-plans-to-join-asian-infrastructure-investment-bank.
  59. Wan, Ming. 2016. The Asian Infrastructure Investment Bank: the Construction of Power and the Struggle for the East Asian International Order. New York: Palgrave Macmillan.Google Scholar
  60. Watt, Nicholas, Paul Lewis, and Tania Branigan. 2015. US anger at Britain joining Chinese-led investment bank AIIB. The Guardian. (13 March 2015). (Accessed 10 April 2019). https://www.theguardian.com/us-news/2015/mar/13/white-house-pointedly-asks-uk-to-use-its-voice-as-part-of-chinese-led-bank
  61. Weiss, Martin A. 2017. “Asian Infrastructure Investment Bank (AIIB).” Congressional Research Service (Washington: Library of Congress). https://fas.org/sgp/crs/row/R44754.pdf.
  62. Wu, Wendy, and Meaghan Tobin. 2019. China-backed Asian Infrastructure Investment Bank raises US$2.5 billion from bond sale in London. South China Morning Post. (10 May 2019). (Accessed 10 June 2019)Google Scholar
  63. Xinhua. 2015. Chronology of China’s Belt and Road Initiative. THE STATE COUNCIL THE PEOPLE'S REPUBLIC OF CHINA. http://english.gov.cn/news/top_news/2015/04/20/content_281475092566326.htm. Accessed 25 June 2019.
  64. Zhang, Yunbi. 2018. President Xi: Belt, Road needs Latin flavour. China Daily. (23 January 2018). (Accessed 12 June 2019). http://www.chinadaily.com.cn/a/201801/23/WS5a66766da3106e7dcc135d89.html
  65. Zhang, Yunbi, and Chunyan Zhang. 2015. Prince William arrives in China to warm welcome. China Daily. (2 March 2015). (Accessed 11 May 2019).www.chinadaily.com.cn/world/cn_eu/2015-03/02/content_19688379.htm
  66. Zhu, Jiejin. 2019. “Two Approaches to Institutionalizing the New Development Assistance: A Comparative Analysis of the Operational Institutions of NDB and AIIB.” In New Development Assistance: Emerging Economies and the New Landscape of Development Assistance, edited by Yijia Jing, Alvaro Mendez and Yu Zheng, 75–98. Basingstoke, UK: Palgrave Macmillan.Google Scholar
  67. Zoellick, Robert. 2015. Shunning Beijing’s infrastructure bank was a mistake for the US. Financial Times. (7 June 2015). (Accessed 25 May 2019). https://www.ft.com/content/c870c090-0a0c-11e5-a6a8-00144feabdc0

Copyright information

© The Author(s) 2020

Authors and Affiliations

  1. 1.Fudan Institute for Global Public PolicyFudan UniversityShanghaiChina
  2. 2.ESIC Business & Marketing SchoolMadridSpain
  3. 3.London School of Economics and Political ScienceLondonUK
  4. 4.UCEMABuenos AiresArgentina

Personalised recommendations