Weekly Current Affairs

Notice

Russia, Australia, Netherlands to join AIIB

  • A late surge among top European countries, including Germany, France, Britain, and now Russia along with Australia to join the China-led Asian Infrastructure Investment Bank (AIIB), has imparted a new sense of realism to Beijing’s Silk Road plans.
  • If implemented, they are likely to shift the global balance of economic power towards Eurasia.
  • Russia, Australia and the Netherlands, announced its decision to join the Chinaled AIIB.
  • The decision of key European powers along with South Korea to join the bank, overriding strong objections from the United States, has split the Atlantic Alliance on this issue.
  • China’s “One belt One road” initiative envisages connecting the Pacific coast with Europe by an extensive transport, cyber and energy network along the Eurasian corridor.
  • Inter-linked with the land route, China wants to establish the 21st century Maritime Silk Road (MSR) , which would connect China with a string of ports, from where would radiate economic corridors, in Southeast Asia, South Asia, West Asia and Africa. The MSR would terminate in Europe.
  • The AIIB’s apparent success has now brought into sharper focus China’s ‘One belt One Road’ initiative which requires massive investment, including finance from the $40 billion Silk Road fund, which Chinese have separately established.
  • ‘One Belt One Road’ initiative, backed by a solid financial institutional network, once implemented, is expected to accelerate the shift of geo-economic power away from the United States, towards Eurasia.
  • More than 4.4 billion people, or 63 per cent of the global population countries, are expected to benefit from China’s game-changing plans.