Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Can the Asian Infrastructure Investment Bank limit South China Sea pressure?

By Stewart Taggart - posted Thursday, 16 June 2016


In the end, such a vote would offer only a pyrrhic victory for either side. It could open up such large political divisions within the AIIB that the organization breaks apart. No one wants that. 

To date, China’s underestimated the blow back from its geopolitical over-reach in the South China Sea. It’s been made worse by China’s domestic propaganda machine. 

It’s been using the South China Sea as a distracting nationalistic lightning rod to shift attention from issues like needed reform of domestic residency laws (the hoku system), pollution and corruption.

Advertisement

The AIIB is an important symbol for the Communist Party that China’s emergence as a global player represents the ripening fruit of decades of personal sacrifice by the Chinese people.

While it’s an overstretch to call the AIIB it a ‘vanity project’ for China - it is something close.

Given this, China will work hard to keep controversial items off the AIIB’s agenda. This gives other members an avenue for getting China’s attention that other avenues - like appeals to UN Tribunals -haven’t.

Happily, the issue of the South China Sea need not be framed in such naked political terms. If the AIIB shies away from funding compelling infrastructure projects in Southeast Asia like the TAGP and TAEG, others can step in.

These include theAsian Development Bank (ADB), the World Bank,theGreen Climate Fund and even Japan’s $200 billion export infrastructure fund - which alone boasts twice the capital of the AIIB.

If these organizations worked together to fund a common plan in the South China Sea and share funding, the AIIB’s hand could be forced. This would be particularly so if the AIIB were internally divided along the voting lines outlined above. 

Advertisement

The big issue here isn’t azero-sum involving one side or the other prevailing over the legality/acceptability of China’s Nine Dotted Line. The bigger issue is the preparation of the world economy for the 21st Century.

That means building out the infrastructure to enable more of Asia’s people to join the global economy and to enable Asia’s economies (like everywhere) to progressively decarbonize and more sustainably steward their resources like fisheries.

Given this, joint development in the South China Sea can set a crucial precedent benefitting everyone, particularly China. 

  1. Pages:
  2. 1
  3. 2
  4. Page 3
  5. 4
  6. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

1 post so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Stewart Taggart is principal of Grenatec, a non-profit research organizing studying the viability of a Pan-Asian Energy Infrastructure. A former journalist, he is co-founder of the DESERTEC Foundation, which advocates a similar network to bring North African solar energy to Europe.

Other articles by this Author

All articles by Stewart Taggart

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Article Tools
Comment 1 comment
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy