China proposes fund for Latin America and the Caribbean

[Catherina]

China proposes fund for Latin America and the Caribbean

San Jose, June 3 (PL) China aims to create a fund for Latin America and the Caribbean and the way to implement it may be the CELAC, reported here Costa Rican Foreign Minister Enrique Castillo.

Chinese President Xi Jinping on Monday called his colleague from Costa Rica, Laura Chinchilla, to intercede to bring the Asian giant to the Community of Latin American and Caribbean States (CELAC), and even arrange a meeting with the leaders of their member countries, according to Castillo.

In a statement read to reporters, Xi confirmed the interest of the government to approach the CELAC.

...

Also, Beijing will provide soft loans to various Caribbean nations worth three billion dollars, in addition to sending doctors and provide scholarships to students in several states, the press reported on Monday in Trinidad and Tobago, to review the recent visit of Chinese president.

http://www.prensa-latina.cu/index.php?option=com_content&task=view&idioma=1&id=1477421&Itemid=1

[Laelth]

1. Interesting.

That's a test to see how committed we are to the Monroe Doctrine and a response to the pivot. We plan to send more warships to the Pacific. They plan to send money to poor countries in the Western Hemisphere.

-Laelth

[Kolesar]

2. China takes a lot of resources from South America

They need all that good will.

[Catherina]

3. I think so too. UK Guardian article gave a few more details about the finances

Latin America playing a risky game by welcoming in the Chinese dragon

Chinese finance is more in tune with what Latin America wants, rather than what western development experts say it needs


Uruguay's president, José Mujica, shares a toast with Chinese president Xi Jinping, who is visiting Latin America this week. Photograph: Jason Lee/EPA

The Chinese president, Xi Jinping, travels to the US and Latin America this week, for the first time since he took office in March. What a difference a decade makes. Ten years ago, there would hardly have been any fanfare about a Chinese visit to the region. Now, for Brazil, Chile and others, China is the most important trade and investment partner. China-Latin America trade surpassed $250bn (£165bn)last year.

Although China's impact in Africa receives the most attention, China trades just as much in Latin America as in Africa, and has more investments in the region. Chinese finance in Latin America – chiefly from the China Development Bank and the Export-Import Bank of China – is staggeringly large and growing. In a recently updated report, colleagues and I estimate that, since 2005, China has provided loan commitments of more than $86bn to Latin American countries. That is more than the World Bank or the Inter-American Development Bank have provided to the region during the same period.

...

Chinese finance is more in tune with what Latin American nations want, rather than with what western development experts say they "need". Whereas the US and international financial institutions (IFIs) such as the World Bank and IMF tend to finance in line with the latest development fads such as trade liberalisation and micro-anti-poverty programmes, Chinese loans tend to go into energy and infrastructure projects in a region that has an annual infrastructure gap of $260bn.

Neither do Chinese loans come with the harsh strings attached to IFI finance. The IFIs are notorious for their "conditionalities" that make borrowers sign up to austerity and structural adjustment programmes that have had questionable outcomes on growth and equality in the region.

...

http://www.guardian.co.uk/global-development/poverty-matters/2013/may/30/latin-america-risky-chinese-dragon

[Judi Lynn]

9. Outstanding article. Great information. LatAm can use better quality in lending organizations.

Far better conditions with this solution, so far, at least.

Full speed ahead!

[naaman fletcher]

4. I've had a lot of experience

In 2nd and 3rd world countries, indirectly competing with the Chinese in a way.

Most of my experience will relate to Kenya:

In Kenya, the Chinese are financing and building a lot.

If you are a developing country and you take IMF money we all know what happens. If things go poorly the IMF forces you into austerity and such. Nestor Kitchener rightly told them to piss off.

The Chinese don't do that. They also don't demand political concessions as the US and the weat does.


The downside is that the Chinese have a shit product when it comes to building codes and quality, so, east Africa is starting to reconsider. Hopefully china responds just by improving the quantity.

The other thing the Chinese have is a willingness to pay bribes. Now of course western firms pay bribes but they have to be very circumspect about to. They Chinese will just show up with suitcases full of cash.

[Laelth]

5. Precisely. The IMF's policies are often wrong-headed.

Austerity certainly is. Selling off state property is also horrendous.

The people in South America are not stupid. They are likely to get better treatment from China.

-Laelth

[naaman fletcher]

6. I just updated my post

Accidently hit post before I was done

[Laelth]

8. Cool. Thanks for the update. n/t

-Laelth

[Kolesar]

7. Siemens had to pay a huge fine and dismiss the directors because of their bribes

...of foreign officials to get business. They did accomplish gaining market share for their products, though.