The Philippines - Joining China's Asian Infrastructure Investment Bank (AIIB)

[CVT]

Yes, China is now the second biggest economy.

However with their incursion into the West Philippine Sea, what do you guys think of this move?


from philnews.com

With the 2015 deadline just a day away, Philippine President Benigno Aquino III threw in the towel and announced that the Philippines would join the Beijing-sponsored Asian Infrastructure Investment Bank (AIIB) as its final founding member. Critics of the new international bank argue that it is China's way of grabbing some of the limelight away from the World Bank (WB) and the Asian Development Bank (ADB), both of which are already doing what the AIIB intends to do. The major difference is that the two older banks (WB and ADB) are primarily funded by the United States and Japan respectively, while China will be the AIIB biggest funder.

According to Philippine Finance Secretary Cesar Purisima, the country needs close to $130 billion to finance infrastructure projects over a 10-year period. With the establishment of the AIIB the Philippines hopes to tap a new source of funding for such projects.

However, if only the country can reduce the level of corruption and more judiciously allocate the billions of dollars remitted annually by overseas Filipinos, there might be more than enough to fund the country's infrastructure development requirements.

Slick operators like Janet Napoles, who is accused of funneling billions of pesos earmarked for development projects, into her own pockets, deprive the country of those much needed funds. Napoles is said to have created hundreds of bogus Non-Governmental Organizations (NGOs), that received billions from the government. Instead of those funds going into countryside development projects, they were pocketed by Napoles and shared with her equally corrupt benefactors in the Philippine House and Senate.

The Philippine economy today is like a bucket of water with lots of holes in it. Plug those holes and the country might have more than enough to fund its way into first-world status. In October 2015 alone, cash remittances from Overseas Filipino Workers (OFWs) totaled $2.2 billion. And for the first 10-months of 2015, a total of $20.6 billion was received—up 3.7 percent from the previous year.

So Filipinos need to discard their mendicant mentality and start taking themselves seriously. Today we approach other countries, hat in hand, expecting a handout. Are we always to be the recipient of foreign aid? Will we ever be able to pay our own way, and stand on our own two feet?

The Filipino masses have once again come to the country's rescue like they did during the EDSA People's Power Revolution in 1986. This time it is the tens of millions of OFWs slaving away in faraway lands who are keeping Just one more blunder before yearendthe economy strong and robust—not the lackadaisical local businessmen who usually think in get-rich-quick terms.

With the OFWs sending back billion of dollars each and every month, the Philippines does not need to be part of China's AIIB. The AIIB will just be another way for China to dictate to the Philippines and meddle in our economic affairs. The WB and the ADB will more than suffice given our significant remittance receipts.

Aquino significantly bolstered China's standing in the region by signing on to the AIIB. At the same time he thumbed his nose at the U.S. and Japan (both of which have voiced skepticism about the AIIB). Aquino has really done a great disservice to the Filipino people by allying with China even after that country forcibly took territory in the West Philippine Sea (South China Sea) that is part of the Philippines. And although Aquino leaves office next year, his successor as well as Filipinos in general will be seen as a people who do not take a stand. In Pilipino: namamangka sa dalawang ilog (two-timing or fence sitting).

In addition, China can even use Aquino's action to argue before the Arbitral Tribunal in the Hague that the Philippines' desire to be part of the AIIB is proof of the country's acceptance of China's sovereignty over the reefs and shoals in the West Philippine Sea. What a way to end the year!

[Ry_Tower]

When I first heard of it parang hindi ako agree na sumali tayo.

But then again we want diplomatic resolution to the spratly issue and joining the group for me is a sign that we are acting mature and amiable as a nation. We don't let a single issue derail future growth and we don't burn bridges that easily.

I think it is a good move overall and in the long run.

[niky]

Yes, China is now the second biggest economy.

However with their incursion into the West Philippine Sea, what do you guys think of this move?


from philnews.com

The West Philippine Sea thing is a separate issue, and China cannot use continuing business or new business as an excuse for their actions. There are trade disputes and military disputes between China and the US and Japan, but the countries are still forced to do business with each other.

Do note... Vietnam and South Korea are shareholders in the AIIB, despite the strained diplomatic relations between them and China.

Here's a more complete list of shareholders:
https://en.wikipedia.org/wiki/Asian_...nvestment_Bank

Politics are politics. Business is business. Business as usual doesn't mean the Philippines' legal case against Chinese incursion will not go forward.

[Monty]

Pragmatic.

[Juan Martinez]

this is more apparent than real.

the philippines joining the AIIB should not be interpreted to mean that we are ceding our claims over the spratlys to china. far from it.

the territorial integrity of one's country is part and parcel of its sovereignty. if it enters into an economic relations with another, however powerful the latter maybe, it is not relinquishing anything, much less its sovereignty. according to rosseau, sovereignty is inalienable and indivisible, in that a republic which surrenders or divides its sovereignty is no longer a republic and can no longer represent the public interest of all of its citizens.

the democratic people's republic of korea is economically dependent with the people's republic of china even if the two have a standing territorial dispute over baekdu mountain.

Page not found | KEI | Korea Economic Institute

vietnam is cambodia's 10th largest foreign investor although they have contending claims over baie and kohta.

Asia Economic Institute : Cambodia and Vietnam: Closer Relations

thailand was the second largest investor in burma in terms of trade, investment, and economic cooperation even they're squabbling over Doi Lang.

Thailand-Burma economic relation strengthens ever more | Asian Tribune

yet, these countries are still there.

it is like saying:

i buy vitsen on credit in your sari-sari store but it doesn't mean you own now my hovel.

[niky]

It should also be noted that it's ONLY Japan and the USA that aren't completely on board with this. The UK, Australia, India Germany, France and... again... South Korea and Vietnam are all shareholders in the AIIB. Amazing that the article fails to mention that those ultra-nationalistic China-boycotting Vietnamese are part of this!

China is the biggest shareholder, but does not have a majority vote all to itself. The more of us non-Chinese countries who have shares, the more we can dictate the way it is run.

There's still a danger, mind, in accomodating China, but diluting its share in the bank can only be a good thing.

[Juan Martinez]

Pragmatic.

laconic, but that's true

[safeorigin]

besides, it's unwise to hold dollar reserves these days due to its volatility...