The Asian Infrastructure Investment Bank (AIIB) offers a “promising” alternative to traditional global lending institutions for developing Countries like Argentina; Argentine Economist and China Expert Gustavo Girado said recently.
Argentina’s prospective membership in the AIIB, announced in 2017, is “auspicious” due to its infrastructure needs and the fact that funding “does not imply the imposition of terms” that could compromise the government, said Girado, director of postgraduate studies in contemporary China at the National University of Lanus.
In addition, Argentina’s experience with China, one of AIIB’s major founders, has been “good in economic and financial terms,” he said.
“This optimal relationship can allow the country to access not only financing but also better conditions than those traditionally offered by the global credit market,” said Girado.
Latin American and Caribbean countries can benefit from the bank’s infrastructure development push, which is also linked to the China-proposed Belt and Road Initiative (BRI) for world economic growth, he noted.
“The AIIB emerges from the surpluses that China has, which are basically infrastructure, technology and financing, precisely the things Latin America lacks”
He highlighted China-backed infrastructure projects in Argentina where, within the framework of the BRI, energy projects are underway, including the Cauchari Solar Park in the northern province of Jujuy and hydropower dams in the southern Patagonian region of Santa Cruz province.
The AIIB can benefit not only Latin America, but “many economies around the world,” said Girado. “It allows many countries to access (financing) without the typical terms they are usually subject to when accessing global loans.”
“The emergence of this financial entity takes into account the interests of a region that is already standing on its own feet, has its own voice and defines its own priorities, which do not necessarily translate merely into macroeconomic balance,” he added.