China is one of the key members of both the BRICS and AIIB. But, could a “conflict of interest” arise, due to these multiple roles? What does investment banker Martin Lustgarten think about these organizations?
“BRICS Alternative Political Power”
As a Third World nation, China could represent the interests of the vast majority of countries on Planet Earth. This was a very lucrative position, ensuring that China would have a place at negotiating tables. Now, as an developed nation, China is a model for high growth.
The BRICS represent a different path for development from the European model. Each region has its unique languages, history and geographical characteristics. Even Hegel argued that geography played an important part in development.All in all, the BRICS group is primarily a political organization. These nations can work together at the United Nations, forming voting blocs. They can also support one another with bilateral trade agreements.
“Economic AIIB Model”
Once China became fully industrialized, it could begin to consider world organizations. With their economic surplus, the created the AIIB, which has memberships, like corporation shares. While the BRICS might coordinate policy, the AIIB will actually be creating policy independently and might replace the Asian Development Bank. In fact, some of the Vice Presidents, previously worked at the Asian Development Bank.
Wisely, taking the best talents from other banks, China is expanding its reach to new projects. The AIIB will also focus primarily on Asia with China, India and Indonesia taking important roles. Having China and India on both the BRICS and AIIB creates stability.
“What Happened to Communism?”
Isn’t it strange how all of these formerly communist nations – Cuba, Russia and China – are suddenly on the front lines, making capitalistic deals? What happened to Communism? Investment banker Martin Lustgarten can guide you in this topsy-turvy world.He can explain how certain investments will be beneficial to BRICS, while others benefit the AIIB. Investment banker Martin Lustgarten might also discuss how China is trying to achieve financial “critical mass” with both organizations.