China’s “One belt, one road” (Belt & Road) initiative is transforming development across Asia, the Middle East, and Europe, and also extending to Africa. One key part of the initiative aims to propel economic development within Asia, a process never significantly supported by the countries of Asia or by external actors, especially in Europe and North America. The Asian Infrastructure Investment Bank (AIIB), which is organized like a typical multilateral development bank, is headed by an elite group of experienced financial and development executives. The “Bank” is the financing vehicle for achieving intergovernmental cooperation. It serves as enabler of the development process and expansion of infrastructure. This seed money supplements even larger sums from governments and private sector actors who will supply most of the capital. AIIB, however, participates in only a small share of the projects; funding sources are diverse. Key infrastructure components include railroads, highways, telecommunications (fiber-optic lines), ports, power plants, and dams. This infrastructure is being integrated by sea and by land. It opens a large territory within Asia (e.g., Siberia, Kazakhstan, Mongolia), previously inaccessible or with poor infrastructure, to resource development. Successful implementation of this initiative will accelerate Eurasian, Middle East, and African development and lead to greater economic integration and restructuring of global supply chains. Numerous projects in Asia, Europe, the Middle East, and Africa are already underway. China’s strategy is to draw on the global financial expertise in London and Hong Kong to identify and organize the vast amounts of capital that will be needed for “Belt & Road” projects. These capital flows will contribute to the internationalization of the renminbi.
About the Speaker:
Prof. David Meyer is Senior Lecturer in Management at Olin Business School, Washington University in St. Louis, teaching international business, with a focus on Asia. Prior to this he was Professor of Sociology & Urban Studies at Brown University. He received his PhD from the University of Chicago. His publications include five books and monographs and over sixty articles and book chapters. His book, Hong Kong as a Global Metropolis (Cambridge University Press, 2000), interpreted that city as the pivot of Asian business networks. Recent publications include network governance at the State Banks of China, banking networks of Asian financial centers, private wealth management in Asia, high-frequency trading on exchanges, Hong Kong and Singapore as network hubs of global capital, Shenzhen in China’s financial center networks, Hong Kong’s enduring global business relations, Bank of China International in Hong Kong, and Hong Kong and Singapore exchanges confront high frequency trading.
~~ ALL INTERESTED ARE WELCOME ~~
Enquiries: 3917 2721
CENTRE OF URBAN STUDIES AND URBAN PLANNING
THE UNIVERSITY OF HONG KONG