The Association of Southeast Asian Nations is keen on taking advantage of financing opportunities presented by the Asian Infrastructure Investment Bank (AIIB) to address infrastructure gaps in the region.
In a draft common statement obtained by the BusinessMirror, Asean said China’s initiatives could help accelerate infrastructure development in the region.
“We look forward to greater cooperation through Asian Infrastructure Investment Bank and the Silk Road Fund to enhance regional infrastructure development,” the statement read.
The Asean aims to build multiple connections from within and outside Asean through its Master Plan on Connectivity. One of its major projects, the roll-on, roll-off (Roro) cargo shipping, was launched in April after the 30th Asean Summit.
The Roro, an initiative of Manila and Jakarta, connects Davao and General cities with Bitung City in Indonesia, using cargo-carrying vessels.
In the same draft common statement, Asean and China have “welcomed ongoing efforts to explore synergies between Asean’s Master Plan on Connectivity and China’s Belt and Road initiative.”
The Master Plan on Connectivity includes the establishment of land, maritime, air, information and communications technology and energy infrastructure. According to the Asian Development Bank (ADB), the Asean needs at least $100 billion every year to complete its needs in roads, railways, power, clean water supply and other critical infrastructure.
The ADB also claimed the Asean only spends about $50 billion annually for infrastructure development, leading to “infrastructure bottlenecks.” It added the key to meeting Asean’s infrastructure finance challenge is by making use of the region’s private savings and the $700 billion it holds in foreign exchange reserves.
The AIIB is seen by other multilateral development banks as a “welcome addition” given that the infrastructure needs of the region are significant.
In a report this year, the ADB said countries in Southeast Asia need to invest around $2.17 trillion, or $145 billion a year, from 2016 to 2030 to address its infrastructure deficit.
Without the AIIB, multilateral institutions, such as the ADB, World Bank, International Finance Corporation and other existing organizations, could only provide, at the most, $50 billion a year. This leaves around $750 billion worth of infrastructure projects unfunded in this decade.
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China has shown by its own example that infrastructure construction is crucial in improving peoples’ livelihood dramatically in developing countries. Thus China is advocating the One Belt One Road Policy. Unfortunately, the US under Clinton/Obama was using the familiar ‘Divide and Rule’ policy to put a spanner in the works through their “Pivot to Asia” and APP policies. Now under Trump, an attempt is made to form an “Indo-Pacific” alliance of US, Japan, India and Australia against China. This cold war mindset has no place in the 21st Century as the US dearly loves military conflict in ASEAN countries so as to benefit the US Military Industrial Complex. Thus while China is building infrastructure and improving peoples’ livelihood all over the world, the US is destroying infrastructure and civilizations all over the world. Do ASEAN countries want to be the next Middle East ?