RIO DE JANEIRO, Sep 1 (IPS) - The sixth ministerial meeting of the India-Brazil-South Africa (IBSA) forum agreed Tuesday in Brasilia to strengthen the dialogue between the three emerging powers in order to establish common positions on regional and international matters and boost South-South cooperation.
The IBSA forum was created in 2003 as a mechanism for political consultation and coordination and to bolster economic relations between India, Brazil and South Africa.
IBSA provides a platform for the three large multicultural and multiracial democracies from three different continents to engage in discussions on cooperation in areas like agriculture, trade, defence and culture.
The three countries have a total combined population of nearly 1.4 million people and a combined GDP of more than 3.2 trillion dollars.
At their meeting in the Brazilian capital, foreign ministers Celso Amorin of Brazil, S.M. Krishna of India and Maite Nkoana-Mashabane of South Africa said they hoped trade among the three countries would climb from 10 billion dollars last year to 25 billion by 2015.
In a joint statement issued at the end of the meeting, the ministers said the channel of dialogue that has been established should serve to broaden the collective voice of the South. They also called for regional cooperation mechanisms based on common experiences and complementarities.
Click here to read the complete article by Fabiana Frayssinet
[Source] -- Inter Press Service News Agency (IPS)
Showing posts with label south-south cooperation. Show all posts
Showing posts with label south-south cooperation. Show all posts
Thursday, September 3, 2009
Wednesday, September 2, 2009
Newswire: China and friends! From all around the world
"Chinese officials size up long-term potential in Sino-African
economic collaborations" --
[http://english.people.com.cn/90001/90778/90857/90861/6746690.html]
economic collaborations" --
[http://english.people.com.cn/90001/90778/90857/90861/6746690.html]
Although Sino-African trade had weakened during the global financial
crisis, Chinese and African enterprises could strengthen their
collaboration and emerge from the downturn together, Chinese trade
officials said at a trade fair Wednesday. Huang Xiwen, chief of Jilin
Province's Commerce bureau, said at the 2009 China Africa Economic and
Trade Cooperation Seminar that local enterprises had been vigorously
developing business with African companies. He said 19 local companies
had invested ..
China and France seeking to develop bilateral ties --
[http://english.people.com.cn/90001/90776/90883/6746718.html]
"China and France seeking to develop bilateral ties"Vice Premier Wang
Qishan said Wednesday China had always valued its relationship with
France, and said he hoped the two countries could work together to
promote bilateral ties. Wang met Jean-David Levitte, a diplomatic
adviser to French President Nicolas Sarkozy Wednesday. Relations had
developed smoothly on the whole since the two countries forged
diplomatic ties 45 years ago, he said. Wang said he hoped the two
countries could handle the relationship from a strategic and long-term
...
"China, Laos vow to reinforce friendly ties" --
[http://english.people.com.cn/90001/90776/90883/6746699.html]
China and Laos reaffirmed their determination to further advance their
traditional friendly relations as senior leaders of the ruling parties
of the two countries met in Beijing Wednesday. He Guoqiang, member of
the Standing Committee of the Political Bureau of the Central
Committee of the Communist Party of China (CPC), met Sisavath
Keobounphanh, chairman of the Central Committee of the Lao Front for
National Reconstruction. Sisavath Keobounphanh, 81, has visited China
many times over t ...
"Japan-China ties to be further promoted following DPJ takes reins:
senior DPJ official" --
[http://english.people.com.cn/90001/90776/90883/6746694.html]
The Democratic Party of Japan (DPJ) Secretary General Katsuya Okada
said Wednesday that the DPJ will continue to advance Japan-China
relations after taking the reins of government. Okada made the remarks
at a symposium to mark the 60th anniversary of the founding of the
People's Republic of China following the DPJ's landslide victory over
the ruling Liberal Democratic Party in the lower house election
Sunday. "The DPJ has, as always, attached great importance to
Japan-China relations and ...
--
Sent from my mobile device
Tuesday, September 1, 2009
China's Policy Paper on Latin America and the Caribbean - MercoPress Analysis
[Source] -- MercroPress
On November 5, 2008, the Chinese government released a policy paper on Latin America and the Caribbean, as it had previously done so for Europe in 2003 and for Africa in 2006.
Although it may not come as a huge surprise that Latin America is the most recent region for which China has formally spelled out its foreign policy position, the region has been historically perceived as being under the United States’ sphere of influence. Perhaps the importance of the Chinese policy paper lies in the timing of its release. The release of the paper deliberately coincided with the unfolding of the current financial crisis; this congruence of events has allowed China to expand its influence in this somewhat neglected region without attracting any lasting venom from the U.S. China’s policy paper formally evidences the importance of Latin America and the Caribbean as part of China’s growth plan for its long-term strategic interests. Most of all, this includes access to raw materials as well as a plethora of natural resources, the infiltration of new foreign markets, the reduction of diplomatic support for the Republic of Taiwan, and the strengthening of Beijing political standing on the global stage through strong alliances cemented with the developing world.
The policy paper’s general context
The policy paper explicitly states its main objective is to “clarify the goals of China’s policy in this region, outline the guiding principles for future cooperation […] and sustain the sound, steady and all-around growth of China’s relations with Latin America and the Caribbean.” In the economic realm, China expresses an interest in investing in energy, mineral resources, forestry, fishing and agriculture, areas important to expanding China’s productivity. Additionally, the Chinese government seems to show interest in infrastructure projects not directly related to its economy, albeit essential in the transportation of natural resources, and proposes to fund these projects in order to be perceived as a partner in development. Furthermore, China expresses its desire to increase military diplomacy and sale of equipment to the region. Although many of the report’s statements are merely rhetoric and general in scope, the paper helps formalize China’s economic, diplomatic and military ties with Latin America, which were first proposed by then President of China Jiang Zemin in 2001.
The policy paper was released against the backdrop of the current financial crisis and the corresponding economic hardships that have severely hit the U.S. and Europe. Its publication deliberately coincided with the emergency G-20 meeting to discuss the economic crisis that was about to take place in Washington. More importantly, it preceded Chinese President Hu Jintao’s visit to Peru for the November 2008 Asia-Pacific Economic Cooperation (APEC) summit, at which he presented China’s foreign policy towards Latin America. This timing of the paper’s release was especially important for the countries seeking to diversify their export markets and decrease their dependence on declining Foreign Direct Investment (FDI) from the US and Europe. With the vast foreign reserves accumulated by China –which totalled US $1.95 trillion in December 2008– the region had valid reasons to closely follow the summit’s developments.
To access this article in full you must register for MecroPress's website.
Once you register, click here for a direct link to this article
On November 5, 2008, the Chinese government released a policy paper on Latin America and the Caribbean, as it had previously done so for Europe in 2003 and for Africa in 2006.
Although it may not come as a huge surprise that Latin America is the most recent region for which China has formally spelled out its foreign policy position, the region has been historically perceived as being under the United States’ sphere of influence. Perhaps the importance of the Chinese policy paper lies in the timing of its release. The release of the paper deliberately coincided with the unfolding of the current financial crisis; this congruence of events has allowed China to expand its influence in this somewhat neglected region without attracting any lasting venom from the U.S. China’s policy paper formally evidences the importance of Latin America and the Caribbean as part of China’s growth plan for its long-term strategic interests. Most of all, this includes access to raw materials as well as a plethora of natural resources, the infiltration of new foreign markets, the reduction of diplomatic support for the Republic of Taiwan, and the strengthening of Beijing political standing on the global stage through strong alliances cemented with the developing world.
The policy paper’s general context
The policy paper explicitly states its main objective is to “clarify the goals of China’s policy in this region, outline the guiding principles for future cooperation […] and sustain the sound, steady and all-around growth of China’s relations with Latin America and the Caribbean.” In the economic realm, China expresses an interest in investing in energy, mineral resources, forestry, fishing and agriculture, areas important to expanding China’s productivity. Additionally, the Chinese government seems to show interest in infrastructure projects not directly related to its economy, albeit essential in the transportation of natural resources, and proposes to fund these projects in order to be perceived as a partner in development. Furthermore, China expresses its desire to increase military diplomacy and sale of equipment to the region. Although many of the report’s statements are merely rhetoric and general in scope, the paper helps formalize China’s economic, diplomatic and military ties with Latin America, which were first proposed by then President of China Jiang Zemin in 2001.
The policy paper was released against the backdrop of the current financial crisis and the corresponding economic hardships that have severely hit the U.S. and Europe. Its publication deliberately coincided with the emergency G-20 meeting to discuss the economic crisis that was about to take place in Washington. More importantly, it preceded Chinese President Hu Jintao’s visit to Peru for the November 2008 Asia-Pacific Economic Cooperation (APEC) summit, at which he presented China’s foreign policy towards Latin America. This timing of the paper’s release was especially important for the countries seeking to diversify their export markets and decrease their dependence on declining Foreign Direct Investment (FDI) from the US and Europe. With the vast foreign reserves accumulated by China –which totalled US $1.95 trillion in December 2008– the region had valid reasons to closely follow the summit’s developments.
To access this article in full you must register for MecroPress's website.
Once you register, click here for a direct link to this article
Thursday, June 18, 2009
Lack of China South America Updates -- Sorry! Lo Siento! 对不去！
I must apologize to all readers and internet surfers who have arrived at China South America in recent days to find that no updates had been made.
This blog was started in response to my personal interests in the following:
1- Sino-Latin American Foreign Policy; Economic and Political
2- Commodity Investment
3- Mining in South America
4- International Investment Opportunities
5- Microfinance in Peru, Bolivia and Colombia
Since graduating from American University in May 2008 with a degree in Economics I have been on a post-collegiate journey to find a greater purpose in life that can one day encompass some these interests.
Opportunity came a'knockin' and I now find myself a international businessman selling South American wines in China and Singapore.
Recent weeks have been particularly hectic with a few deals looming in the horizon this summer.
I promise to get back to the usual flow this weekend.
Thank You -- Gracias -- 谢谢
This blog was started in response to my personal interests in the following:
1- Sino-Latin American Foreign Policy; Economic and Political
2- Commodity Investment
3- Mining in South America
4- International Investment Opportunities
5- Microfinance in Peru, Bolivia and Colombia
Since graduating from American University in May 2008 with a degree in Economics I have been on a post-collegiate journey to find a greater purpose in life that can one day encompass some these interests.
Opportunity came a'knockin' and I now find myself a international businessman selling South American wines in China and Singapore.
Recent weeks have been particularly hectic with a few deals looming in the horizon this summer.
I promise to get back to the usual flow this weekend.
Thank You -- Gracias -- 谢谢
Tuesday, May 26, 2009
Laying the foundation for a tri-nation Boliviaran mining giant in South America
[South-South Cooperation] -- Ecuador, Venezuela, Bolivia
The Ecuadorian government announced plans yesterday of the establishment of a joint mining company with the country of Venezuela and possibly Bolivia. You can read all the vague details in this article from Chinamining.
"We are going to build a great mining company in association with Venezuela and perhaps with Bolivia to exploit some veins of mine ore returned to the State from private hands,"said Ecuadorian Minister of Mines and Petroleum Derlis Palacios.
The Ecuadorian government announced plans yesterday of the establishment of a joint mining company with the country of Venezuela and possibly Bolivia. You can read all the vague details in this article from Chinamining."We are going to build a great mining company in association with Venezuela and perhaps with Bolivia to exploit some veins of mine ore returned to the State from private hands,"said Ecuadorian Minister of Mines and Petroleum Derlis Palacios.
Sunday, May 24, 2009
China Negotiates for Deepwater Oil Blocks Offshore Brazil
[South-South Cooperation] -- Brazil, China -- Rigzone
Lula's visit to China has been anything but boring. On the heels of the $10 billion oil for cash deal reached between Brazil and China this past week, comes news of negotiations for two deepwater oil blocks between Petroleo Brasileiro SA (PBR) and China Petroleum & Chemical Corp.
Rigzone reports in this article:
The two oil blocks under negotiation between oil giants China Petroleum & Chemical Corp. (SNP) and Petroleo Brasileiro SA (PBR) are deepwater exploration blocks located in the north of Brazil, the Brazilian company's top financial official told Dow Jones Newswires on Thursday.
Conversations, however, are still ongoing and the deal isn't closed, said Almir Barbassa, chief financial officer of Petrobras, as the Brazilian company is known.
The blocks under consideration are within Brazilian waters, are 100% owned by Petrobras and run deep, or about 2,000 meters, he said. They are located off the coast of the two neighboring states of Para and Maranhao in northern Brazil, Barbassa added.
Earlier this week, China's National Energy Administration Chairman Zhang Guobao told reporters in Beijing that Brazil would offer two oil blocks to Sinopec, as the Chinese company is known, as a way to strengthen energy cooperation between the two countries. He didn't give any further details.
Click here to access the full article from Rigzone
Lula's visit to China has been anything but boring. On the heels of the $10 billion oil for cash deal reached between Brazil and China this past week, comes news of negotiations for two deepwater oil blocks between Petroleo Brasileiro SA (PBR) and China Petroleum & Chemical Corp. Rigzone reports in this article:
The two oil blocks under negotiation between oil giants China Petroleum & Chemical Corp. (SNP) and Petroleo Brasileiro SA (PBR) are deepwater exploration blocks located in the north of Brazil, the Brazilian company's top financial official told Dow Jones Newswires on Thursday.
Conversations, however, are still ongoing and the deal isn't closed, said Almir Barbassa, chief financial officer of Petrobras, as the Brazilian company is known.
The blocks under consideration are within Brazilian waters, are 100% owned by Petrobras and run deep, or about 2,000 meters, he said. They are located off the coast of the two neighboring states of Para and Maranhao in northern Brazil, Barbassa added.
Earlier this week, China's National Energy Administration Chairman Zhang Guobao told reporters in Beijing that Brazil would offer two oil blocks to Sinopec, as the Chinese company is known, as a way to strengthen energy cooperation between the two countries. He didn't give any further details.
Click here to access the full article from Rigzone
Thursday, May 21, 2009
Brazil and China move toward convertible currency
[South-South Cooperation] -- Brazil, China -- Latin America and Brazil
Vitoria Saddi shares her analysis of the latest news to emerge from this weeks meetings between Brazilian President Lula da Silva and Chinese President Hu Jintao. If you have not already checked out Victoria's site, Latin America and Brazil, I highly recommend you do.
In our view, this is an important step towards convertibility. Clearly, the country can afford to have a convertible currency because it has a healthy balance of payments and the government has been taking steps towards convertibility.
Click here to read the full article from Latin America and Brazil
Vitoria Saddi shares her analysis of the latest news to emerge from this weeks meetings between Brazilian President Lula da Silva and Chinese President Hu Jintao. If you have not already checked out Victoria's site, Latin America and Brazil, I highly recommend you do.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
As we all know, president Lula is in China this week. It seems that one of the goals of his visit is to enable Brazil and China to use their own currencies in trade transactions, rather than the US dollar. The move follows recent Chinese challenges to the status of the dollar as the world’s leading international currency. It should be clear that this deal is different from what China is doing with Argentina – currency swap. In the Brazil - China deal Brazil would pay for Chinese goods with reais and China would pay for Brazilian goods with renminbi. The move follows recent Chinese challenges to the status of the dollar as the world’s leading international currency.In our view, this is an important step towards convertibility. Clearly, the country can afford to have a convertible currency because it has a healthy balance of payments and the government has been taking steps towards convertibility.
Click here to read the full article from Latin America and Brazil
Brazil, India - Bilateral trade to reach $10 bil by 2010
[South-South Cooperation] -- Brazil, India -- ChennaiVision
Mumbai, The bilateral trade between India and Brazil is targeted to reach USD 10 billion by 2010 in view of the new dynamics of South-South cooperation, accelerated by recession hitting the West, CII International Trade Panel Chairperson Harshbeena Zaveri said today.
”The bilateral trade between the two countries has grown from a mere 500 million US dollars in 2000 to 3.12 billion US dollars in 2007 and is targeted to reach USD 10 billion by 2010”, Ms Zaveri, who is also president of NRB Bearings Pvt Ltd said during a conference with the Brazilian industry delegation, that is visiting the to give an impetus to trade and investment.
Click here to access the complete article from ChennaiVision
Mumbai, The bilateral trade between India and Brazil is targeted to reach USD 10 billion by 2010 in view of the new dynamics of South-South cooperation, accelerated by recession hitting the West, CII International Trade Panel Chairperson Harshbeena Zaveri said today.
”The bilateral trade between the two countries has grown from a mere 500 million US dollars in 2000 to 3.12 billion US dollars in 2007 and is targeted to reach USD 10 billion by 2010”, Ms Zaveri, who is also president of NRB Bearings Pvt Ltd said during a conference with the Brazilian industry delegation, that is visiting the to give an impetus to trade and investment.
Click here to access the complete article from ChennaiVision
Tuesday, May 19, 2009
China and Brazil seal $10 billion deal
[South-South Cooperation] -- China, Brazil
Lula da Silva & Hu Jintao
Chinese President Hu Jintao and his Brazilian counterpart, Lula da Silva, finished writing the latest chapter in Sino-Brazilian Cooperation earlier today in Beijing.
ChinaSouthAmerica has been following this story for a few months now, and I must say, it is nice to see a classic example of South-South Cooperation / Emerging Market Cooperation (whatever you want to call it) develop and eventually get finalized.
Here are a few excerpts from a WSJ article that a great job of summing up the details.
State-owned Brazilian oil giant Petroleo Brasileiro SA said it finalized a $10 billion loan agreement from China in return for a long-term supply of oil, another victory for China's new strategy of using its cash-rich banks to help secure the natural resources the country needs to keep its economy growing.
...
Petroleo Brasileiro, known as Petrobras, said under the terms of the 10-year loan from China Development Bank, which has been at the center of China's resources policy, Brazil would supply China Petrochemical Corp., known as Sinopec, 150,000 barrels of oil a day for the first year, rising to 200,000 barrels a day for another nine years.
...
Mr. Gabrielli said the loan's interest rate was under 6.5%, and the loan used oil revenue as collateral but would be repaid in cash -- not oil. Although the deal didn't include guarantees to buy Chinese products or services, other deals will work on exploring closer cooperation, such as moving Chinese equipment factories to Brazil.
...
China's mission to secure commodities does not stop with Brazil--as you are well aware if your a frequent reader at this site.
Beijing has struck similar agreements with energy producers world-wide in recent months, including a $10 billion deal with Kazakhstan and a $25 billion deal with Russian oil and pipeline companies.
...
Stay tuned for further developments and ChinaSouthAmerica's analysis this deal and growth of Sino-Brazilian Cooperation.
Lula da Silva & Hu JintaoChinese President Hu Jintao and his Brazilian counterpart, Lula da Silva, finished writing the latest chapter in Sino-Brazilian Cooperation earlier today in Beijing.
ChinaSouthAmerica has been following this story for a few months now, and I must say, it is nice to see a classic example of South-South Cooperation / Emerging Market Cooperation (whatever you want to call it) develop and eventually get finalized.
Here are a few excerpts from a WSJ article that a great job of summing up the details.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
State-owned Brazilian oil giant Petroleo Brasileiro SA said it finalized a $10 billion loan agreement from China in return for a long-term supply of oil, another victory for China's new strategy of using its cash-rich banks to help secure the natural resources the country needs to keep its economy growing.
...
Petroleo Brasileiro, known as Petrobras, said under the terms of the 10-year loan from China Development Bank, which has been at the center of China's resources policy, Brazil would supply China Petrochemical Corp., known as Sinopec, 150,000 barrels of oil a day for the first year, rising to 200,000 barrels a day for another nine years.
...
Mr. Gabrielli said the loan's interest rate was under 6.5%, and the loan used oil revenue as collateral but would be repaid in cash -- not oil. Although the deal didn't include guarantees to buy Chinese products or services, other deals will work on exploring closer cooperation, such as moving Chinese equipment factories to Brazil.
...
China's mission to secure commodities does not stop with Brazil--as you are well aware if your a frequent reader at this site.
Beijing has struck similar agreements with energy producers world-wide in recent months, including a $10 billion deal with Kazakhstan and a $25 billion deal with Russian oil and pipeline companies.
...
Stay tuned for further developments and ChinaSouthAmerica's analysis this deal and growth of Sino-Brazilian Cooperation.
Sunday, May 17, 2009
Weekend Newswire: South-South Cooperation
[Brazil - Saudi Arabia] -- Saudi Arabia and Brazil are natural allies
By Luiz Inacio Lula Da Silva
This week I will have the honor to be the first Brazilian President to officially travel to Saudi Arabia. I retain fond memories of the visit in 2000 of the then Crown Prince to Brazil. Since then, numerous high level visits have further strengthened the ties between our two countries and peoples.
Brazil prides itself on having roots in the rich cultural heritage of Arab civilization. Successive waves of immigrants from the Middle East have made their way to Brazil in search of a new horizons and a better life. Over the years they have contributed to forging present-day Brazil and to its diverse human landscape. Arab values, tastes and sensibilities are today an integral part of what it means to be Brazilian.
My trip to Saudi Arabia aims to explore and enhance these many-faceted affinities and the opportunities for cooperation that they offer. Much has been achieved over recent years, but much remains to be done if we are to fully realize the potential of two thriving economies that are making their mark on the global scene.
[China - Bahrain] -- Bahrain reviews construction ties with China
Co-operation between Bahrain and China in the construction sector was discussed at a key meeting.
Minster of State for Foreign Affairs and Tamkeen chairman Dr Nazar Al Baharna met a Chinese business delegation and discussed various issues of mutual interest.
Development of programmes that can reduce the dependency of construction companies on unskilled labour by introducing machinery and technological solutions was also highlighted.
[India - Kenya] -- Kenya, India to beef up ties in small industry sector
In yet another indication of India's growing interest in the East African region, the country's National Small Industries Corp (NSIC) has signed an agreement with Kenya Industrial Estates (KIE) to strengthen cooperation in the small scale industry sector.
KIE is a state-run agency of Kenya to promote indigenous entrepreneurship and small and medium enterprises (SME).
According to media reports here, the partnership involves technology transfer, and marks a major step towards improving Kenya's quality standards in manufacturing, production and human resources.
"The government is keen to forge a viable partnership with friendly countries, particularly in the spirit of south-south cooperation," Kenyan Industrialisation Minister Henry Kosgey was quoted as saying.
[Asia - Africa] -- Asian Foreign Direct Investment in Africa
Foreign direct investment (FDI) in Africa by developing Asian economies is growing and has the potential to reach much higher levels. The present report notes that Africa-bound FDI is still a small percentage of the rapidly climbing foreign investments being made by Asian transnational corporations.
The rapid economic growth in Asia can be expected to lead to increased Asian investments in Africa, in both natural resources and manufacturing. In particular, the rapid industrial upgrading taking place in Asia provides ample opportunities for Africa to attract efficiency-seeking and export-oriented FDI from Asian economies.
Sunday, May 10, 2009
Weekend Newswire: South-South Cooperation
[Brazil - Argentina] -- Brazil, Argentina Working on $1.5 Billion Credit Line
Brazil and Argentina are nearing agreement on a “precautionary” measure to create a $1.5 billion credit line to help boost liquidity amid the global financial slowdown, ministers from the two countries said.
As many as seven countries, including Argentina and Uruguay, may establish reciprocal credit lines to help boost liquidity in South America, Brazilian Finance Minister Guido Mantega told reporters in Buenos Aires. Argentine Economy Minister Carlos Fernandez said the credit line with Brazil would be for the equivalent of $1.5 billion in local currencies.
[Peru - South Korea] -- Peru, S Korea to hold 2nd round of FTA talks
The Second Round of Negotiations for a Free Trade Agreement (FTA) between Peru and the Republic of Korea will be held in the Peruvian capital Lima on May 11-14, the Ministry of Foreign Trade and Tourism (Mincetur) reported Sunday.
On Monday, the negotiating teams will discuss issues such as dispute settlement, trade remedies, temporary entry, investment, sanitary and phytosanitary measures, cooperation, rules of origin and public purchases.
On Tuesday, they will discuss trade in goods, intellectual property, telecommunications and financial services.
On Wednesday, the meeting will focus on institutional and labor matters, financial services and competition policy.
On Thursday, issues to be discussed include customs and trade facilitation, services and investments, as well as environment.
[China - Zambia] -- Zambia picks China group to run Luanshya copper mine
Zambia on Friday selected Chinese company NFC Africa as the new investor to run the closed Luanshya Copper Mines (LCM), which is due to restart production at the end of May.
"It is now with great pleasure that I announce the sale of the 85% shares to China Nonferrous Metals Mining, commonly known as NFCA," Zambia's President Rupiah Banda told former Luanshya Copper Mines workers at a public meeting.
Brazil and Argentina are nearing agreement on a “precautionary” measure to create a $1.5 billion credit line to help boost liquidity amid the global financial slowdown, ministers from the two countries said.
As many as seven countries, including Argentina and Uruguay, may establish reciprocal credit lines to help boost liquidity in South America, Brazilian Finance Minister Guido Mantega told reporters in Buenos Aires. Argentine Economy Minister Carlos Fernandez said the credit line with Brazil would be for the equivalent of $1.5 billion in local currencies.
[Peru - South Korea] -- Peru, S Korea to hold 2nd round of FTA talks
The Second Round of Negotiations for a Free Trade Agreement (FTA) between Peru and the Republic of Korea will be held in the Peruvian capital Lima on May 11-14, the Ministry of Foreign Trade and Tourism (Mincetur) reported Sunday.
On Monday, the negotiating teams will discuss issues such as dispute settlement, trade remedies, temporary entry, investment, sanitary and phytosanitary measures, cooperation, rules of origin and public purchases.
On Tuesday, they will discuss trade in goods, intellectual property, telecommunications and financial services.
On Wednesday, the meeting will focus on institutional and labor matters, financial services and competition policy.
On Thursday, issues to be discussed include customs and trade facilitation, services and investments, as well as environment.
[China - Zambia] -- Zambia picks China group to run Luanshya copper mine
Zambia on Friday selected Chinese company NFC Africa as the new investor to run the closed Luanshya Copper Mines (LCM), which is due to restart production at the end of May.
"It is now with great pleasure that I announce the sale of the 85% shares to China Nonferrous Metals Mining, commonly known as NFCA," Zambia's President Rupiah Banda told former Luanshya Copper Mines workers at a public meeting.
Friday, May 8, 2009
The Bank of the South -- A step towards regional integration in South America
[South America Analysis] -- The significance of creating a new regional bank in South America.
** Note the opinions reflected in this article are my own and do not reflect any resource used in writing this analysis.
As high level Economy and Finance ministers from seven South American countries meet in Argentina with the goal of moving forward the creation of the Bank of the South (El Banco Sur), it is imperative to examine the bigger picture. I have synthesized two major points I would like to highlight.
1) South American countries are experimenting with new institutions. If found to be viable and efficient, these institutions can potentially form the building blocks of larger and more complex ones. The end result will be the promotion of legitimate regional integration in South America.
2) The Bank of the South, along with other efforts such as the Andean Development Corporation will provide South American countries first-hand experience in promoting economic development through South-South Cooperation. Development via this avenue takes advantage of the strengths and weaknesses of other developing countries to promote development from within. South-South Cooperation has great potential to create a new channel in which to promote sustainable economic growth and empower developing countries with the tools and means in which to help each other develop, thus cutting their reliance on external aid from wealthy donor countries or multi-lateral organizations such as the IMF (eventually).
The Bank of the South, which has been financed by the South American countries of Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela, will begin operations with an initial capital pool of $10 billion. This figure was agreed upon during the last meeting held in March in Caracas, Venezuela (MercoPress).
When you casually see hundreds of billions of dollars being thrown around in today’s headlines, it is easy to dismiss this $10 billion effort as menial, at best…
The real point however is not to rock the boat, the boat in this context being the International Monetary Fund (IMF) and other multilateral lending institutions. Hugo Chavez may be full of rhetoric that says otherwise, but as much as he would like the Bank of the South to counter the influence of the IMF, he knows at the moment it cannot.
Consider two major lending institutions—the IMF and the Inter-American Development Bank (IDB). Ideas are being floated around to increase IMF capital to $500 billion (see this BBC article). Granted not all this will go to Latin America, but no less this is a substantially larger capital pool than the Bank of the South will have. The IDB, which is a Latin America specific regional lender, has $101 billion of its own of capital.
However, if we look at one other regional lender—the Andean Development Corporation, which includes some of the remaining South American countries which are not participating in the Bank of the South (Peru, Chile and Colombia), has a capital pool of $5 billion. The Bank of the South, with seven founding members and $10 billion in capital to lend is a definite step forward for the region
Consider for a moment, the fact South American countries have not always been as successful as they are now at managing inflation, debt, budgets, political stability, etc. Today in 2009, South American countries have international reserves. Click here to access a great article with some straight forward data that illustrates this phenomenon from Victoria Saddi’s site, Brazil and Economics. In a few years the United States may have to add to their Chinese and Middle Eastern credit lines by opening up new ones with countries in Latin America.
Definitely not a good thing for U.S self-esteem, but that is another story all together. Discussion welcome for those who would like to share their opinions on the subject.
The Bank of the South will not tip the international balance of power in either the worlds of regional and or international lending institutions. It will however help create the foundation for future organizations and institutions which one day will rival the influence of first world institutions like the IMF.
~ Analysis by Bennett Reiss
** Note the opinions reflected in this article are my own and do not reflect any resource used in writing this analysis.
As high level Economy and Finance ministers from seven South American countries meet in Argentina with the goal of moving forward the creation of the Bank of the South (El Banco Sur), it is imperative to examine the bigger picture. I have synthesized two major points I would like to highlight.
1) South American countries are experimenting with new institutions. If found to be viable and efficient, these institutions can potentially form the building blocks of larger and more complex ones. The end result will be the promotion of legitimate regional integration in South America.
2) The Bank of the South, along with other efforts such as the Andean Development Corporation will provide South American countries first-hand experience in promoting economic development through South-South Cooperation. Development via this avenue takes advantage of the strengths and weaknesses of other developing countries to promote development from within. South-South Cooperation has great potential to create a new channel in which to promote sustainable economic growth and empower developing countries with the tools and means in which to help each other develop, thus cutting their reliance on external aid from wealthy donor countries or multi-lateral organizations such as the IMF (eventually).
The Bank of the South, which has been financed by the South American countries of Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela, will begin operations with an initial capital pool of $10 billion. This figure was agreed upon during the last meeting held in March in Caracas, Venezuela (MercoPress).
When you casually see hundreds of billions of dollars being thrown around in today’s headlines, it is easy to dismiss this $10 billion effort as menial, at best…
The real point however is not to rock the boat, the boat in this context being the International Monetary Fund (IMF) and other multilateral lending institutions. Hugo Chavez may be full of rhetoric that says otherwise, but as much as he would like the Bank of the South to counter the influence of the IMF, he knows at the moment it cannot.
Consider two major lending institutions—the IMF and the Inter-American Development Bank (IDB). Ideas are being floated around to increase IMF capital to $500 billion (see this BBC article). Granted not all this will go to Latin America, but no less this is a substantially larger capital pool than the Bank of the South will have. The IDB, which is a Latin America specific regional lender, has $101 billion of its own of capital.
However, if we look at one other regional lender—the Andean Development Corporation, which includes some of the remaining South American countries which are not participating in the Bank of the South (Peru, Chile and Colombia), has a capital pool of $5 billion. The Bank of the South, with seven founding members and $10 billion in capital to lend is a definite step forward for the region
Consider for a moment, the fact South American countries have not always been as successful as they are now at managing inflation, debt, budgets, political stability, etc. Today in 2009, South American countries have international reserves. Click here to access a great article with some straight forward data that illustrates this phenomenon from Victoria Saddi’s site, Brazil and Economics. In a few years the United States may have to add to their Chinese and Middle Eastern credit lines by opening up new ones with countries in Latin America.
Definitely not a good thing for U.S self-esteem, but that is another story all together. Discussion welcome for those who would like to share their opinions on the subject.
The Bank of the South will not tip the international balance of power in either the worlds of regional and or international lending institutions. It will however help create the foundation for future organizations and institutions which one day will rival the influence of first world institutions like the IMF.
~ Analysis by Bennett Reiss
Thursday, May 7, 2009
Moving forward, Creating a Bank of the South
South-South Cooperation: The Bank of the South
Back in March I did a small piece on the creation of the Bank of the South, a.k.a, El Banco Sur (click here to see post). Currently working on my own analysis to this development and my general view on this South American effort to create a regional bank.
For now, here are a few excerpts from today's MercoPress article.
Economy and Finance ministers from seven South American countries are scheduled to meet Friday in Buenos Aires to advance in the creation of the Bank of the South, a financial institution to fund infrastructure and development projects in the region.
“At the meeting participants will advance in the founding multilateral agreements for the establishment of the Bank of the South“, said the Argentine Central Bank in a short release.
Participating ministers are from Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela.
Back in March I did a small piece on the creation of the Bank of the South, a.k.a, El Banco Sur (click here to see post). Currently working on my own analysis to this development and my general view on this South American effort to create a regional bank.
For now, here are a few excerpts from today's MercoPress article.
Economy and Finance ministers from seven South American countries are scheduled to meet Friday in Buenos Aires to advance in the creation of the Bank of the South, a financial institution to fund infrastructure and development projects in the region.
“At the meeting participants will advance in the founding multilateral agreements for the establishment of the Bank of the South“, said the Argentine Central Bank in a short release.
Participating ministers are from Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela.
Saturday, April 11, 2009
Venezuela's to do list: Sell China 1 million barrels oil/ day by next year
Chavez's tour de Asia produced a new bit of news on Friday:
"I proposed that given the global situation we study the possibility and we agreed to move up the target set in the strategic accord for 2013," said Chavez on Friday.
Basically this means that in the context of the current global economic crisis Venezuela needs to increase its oil revenues which account for about 90% of the country's budget. Second, China which only a year ago was paying astronomical prices for all its commodity inputs (including oil), is now on a shopping spree in order to secure future supply while the price is good.
Click here to access a concise article which covers the major points on this development from Rigzone -- Efe
"I proposed that given the global situation we study the possibility and we agreed to move up the target set in the strategic accord for 2013," said Chavez on Friday.
Basically this means that in the context of the current global economic crisis Venezuela needs to increase its oil revenues which account for about 90% of the country's budget. Second, China which only a year ago was paying astronomical prices for all its commodity inputs (including oil), is now on a shopping spree in order to secure future supply while the price is good.
Click here to access a concise article which covers the major points on this development from Rigzone -- Efe
Tuesday, March 31, 2009
South-South Cooperation: Chile supports India as permanent member of UN Security Council - MercoPress
India and Chile reaffirmed their support for a comprehensive reform of the United Nations including expansion of the Security Council to make the world body more representative, legitimate and effective.
PM Manmohan Singh and visiting Chilean President Michelle Bachelet stressed and acknowledged the need for continued efforts by member states to ensure "meaningful and result-oriented intergovernmental negotiations".
Chilean President Michelle Bachelet with PM Manmohan Singh
The joint statement issued after the meeting said that Chile reiterated its support for India's permanent membership on an expanded UN Security Council. It also confirmed their reciprocal support for each other's candidature for non-permanent membership of the UN Security Council for 2011-12 (India) and 2014-15 (Chile).
Click here to access the complete article from MercoPress
PM Manmohan Singh and visiting Chilean President Michelle Bachelet stressed and acknowledged the need for continued efforts by member states to ensure "meaningful and result-oriented intergovernmental negotiations".
Chilean President Michelle Bachelet with PM Manmohan SinghThe joint statement issued after the meeting said that Chile reiterated its support for India's permanent membership on an expanded UN Security Council. It also confirmed their reciprocal support for each other's candidature for non-permanent membership of the UN Security Council for 2011-12 (India) and 2014-15 (Chile).
Click here to access the complete article from MercoPress
Monday, March 30, 2009
Latin America hopeful for more Chinese investment
The Governor of the People's Bank of China, Zhou Xiaochuan was in Colombia this weekend rubbing shoulders with the head honchos of Latin America's governments, intellectuals and business leaders.
Chinese Central Bank Governor Zhou Xiaochuan
attends the Inter-American Development Bank (IDB)
meeting in Medellin, Colombia, March 28, 2009.
(Xinhua/David De La Paz)
Most major media outlets from North America and Europe picked up Zhou's pledge that China would actively support the International Monetary Fund (IMF) and other multilateral lending organizations such as the Inter-American Development Bank (IDB).
This naturally means China will want a legitimate voice in these institutions. Hopefully a Chinese voice will be for the better, not worse. Giving the Chinese a shot after all the foul-ups with U.S led efforts in the IMF shouldn't be too much to ask.
After reading through comments and quotes from various media reports on Zhou's speech, the consensus is clear. China plans on continuing the promotion of South-South Cooperation between developing nations—and is particularity optimistic about the prospects which lie ahead in regard to Sino-Latin American cooperation..
“South-South cooperation is all the more important amid the current financial crisis, and China will expand its trade with and increase its investment in Latin American countries after it joined the IDB, he said.”
"We see huge potential for economic ties and trade between Latin America and China," he said, noting that China has a free-trade pact with Chile, has concluded negotiations for such a pact with Peru and could have one with Costa Rica.
"The potential for China to make foreign direct investment in the region is huge," he said, adding that some sectors of special interest are in pharmaceuticals, computer software, aeronautics and biological products.
Trade between China and the greater Latin American region has been growing at an average rate of 40% in recent years and hit a record high of $143.3 billion in 2008 according to Xinhua News Media.
Zhou was in Colombia attending the 50th annual meeting of the IDB, which it joined in January this year.
Chinese Central Bank Governor Zhou Xiaochuan attends the Inter-American Development Bank (IDB)
meeting in Medellin, Colombia, March 28, 2009.
(Xinhua/David De La Paz)
Most major media outlets from North America and Europe picked up Zhou's pledge that China would actively support the International Monetary Fund (IMF) and other multilateral lending organizations such as the Inter-American Development Bank (IDB).
This naturally means China will want a legitimate voice in these institutions. Hopefully a Chinese voice will be for the better, not worse. Giving the Chinese a shot after all the foul-ups with U.S led efforts in the IMF shouldn't be too much to ask.
After reading through comments and quotes from various media reports on Zhou's speech, the consensus is clear. China plans on continuing the promotion of South-South Cooperation between developing nations—and is particularity optimistic about the prospects which lie ahead in regard to Sino-Latin American cooperation..
“South-South cooperation is all the more important amid the current financial crisis, and China will expand its trade with and increase its investment in Latin American countries after it joined the IDB, he said.”
"We see huge potential for economic ties and trade between Latin America and China," he said, noting that China has a free-trade pact with Chile, has concluded negotiations for such a pact with Peru and could have one with Costa Rica.
"The potential for China to make foreign direct investment in the region is huge," he said, adding that some sectors of special interest are in pharmaceuticals, computer software, aeronautics and biological products.
Trade between China and the greater Latin American region has been growing at an average rate of 40% in recent years and hit a record high of $143.3 billion in 2008 according to Xinhua News Media.
Zhou was in Colombia attending the 50th annual meeting of the IDB, which it joined in January this year.
Sunday, March 29, 2009
Taiwan loosing ground in Latin America
The election of left-leaning Mauricio Funes in El Salvador is not about to cause the country to dismantle private property laws, retreat on free trade or any of the other major fears associated with left-wing politics.
Funes will however finally move El Salvador from Taiwan's speed-dial to that of the People's Republic of China (the Mainland).
Taiwan maintains official diplomatic relations with roughly 23 countries around the world, a good handful of which are in Central and South America. Taiwan has typically been able to maintain these relations thanks to "money diplomacy."
China may be a huge economy, but by and large it is still relatively poor and filling the void of billions of Taiwanese aid $'s hasn't been on the top of China's agenda, especially for the countries that have bananas to offer in terms of commodities (instead of metals or energy).
Experts seem to think Taiwan's best bet is to attempt to achieve some type of "dual recognition," meaning acknowledging the coexistence of both the PRC and the Republic of China on Taiwan. Making for "two Chinas" or "one China, one Taiwan" stance.
Hey Taiwan! I love you and think your country is a wonderful place and you have all the right to fight for what you believe... but common' get real.
As you can see in this previous post, when the PRC visits leaders in Africa and Latin America one of the first courteous gestures is to emphasize the given countries dedication to support the the PRC's "one China" policy.
Funes will however finally move El Salvador from Taiwan's speed-dial to that of the People's Republic of China (the Mainland).
Taiwan maintains official diplomatic relations with roughly 23 countries around the world, a good handful of which are in Central and South America. Taiwan has typically been able to maintain these relations thanks to "money diplomacy."
China may be a huge economy, but by and large it is still relatively poor and filling the void of billions of Taiwanese aid $'s hasn't been on the top of China's agenda, especially for the countries that have bananas to offer in terms of commodities (instead of metals or energy).
Experts seem to think Taiwan's best bet is to attempt to achieve some type of "dual recognition," meaning acknowledging the coexistence of both the PRC and the Republic of China on Taiwan. Making for "two Chinas" or "one China, one Taiwan" stance.
Hey Taiwan! I love you and think your country is a wonderful place and you have all the right to fight for what you believe... but common' get real.
As you can see in this previous post, when the PRC visits leaders in Africa and Latin America one of the first courteous gestures is to emphasize the given countries dedication to support the the PRC's "one China" policy.
Saturday, March 28, 2009
Good weekend reading: South-South Cooperation in Latin America and the Caribbean, ways ahead following Accra
This 6-page Spanish document aims to analyze the opportunities and challenges of South-South cooperation in Latin America and the Caribbean.
South-South Cooperation in Latin America and the Caribbean: Ways Ahead from Accra
Below I have copy and pasted the opening of the document. Click the link above to download the PDF to your desktop. It's only 6 pages and not a bad read. Enjoy.
South-South cooperation has gained prominence in global development policies as a result of its inclusion in the Accra Agenda for Action, the September 2008 agreement which reinforces the aid effectiveness principles of the Paris Declaration. This opens up an important forum for encouraging South-South cooperation as a mechanism for horizontal learning and for promoting the development of national capacities. However, strengthening South-South cooperation at the conceptual and operational levels still poses major challenges, as does improving the measurement of its scale and impact.
Looking to the new task team on South-South Cooperation within the Working Group on Aid Effectiveness (WP-EFF), the following pages aim to analyze the opportunities and challenges of South-South cooperation in Latin America and the Caribbean. As a region containing countries with numerous similarities in their political and institutional history and patterns of social and economic development, Latin America and the Caribbean constitutes a privileged environment where a number of shared agendas are already evolving. However, the operationalisation of South-South cooperation within the framework of the Accra Agenda for Action and the Paris Declaration also faces a series of specific circumstances1 that future political decisions and analytical work need to address in concrete ways.
The ideas expressed in this document stem from the joint reflections of two researchers from the Colombian organization Enlaza and the European think tank FRIDE, respectively. The analysis has benefit ted particularly from bilateral talks with Latin American and European experts over the past three months, on the one hand, and a workshop held on 6 March 2009 in Bogota, on the other. Both authors wish to express their deep gratitude to all interviewees for sharing their vision on South-South cooperation, which is increasingly important to Latin America and the Caribbean.
María Clara Sanín Betancourt, Nils-Sjard Schulz of FRIDA
-- Fundación para las Relaciones Internacionales y el Diálogo Exterior
About FRIDE
FRIDE is a think tank based in Madrid that aims to provide the best and most innovative thinking on Europe’s role in the international arena. It strives to break new ground in its core research interests of peace and security, human rights, democracy promotion, and development and humanitarian aid, and mould debate in governmental and non-governmental bodies through rigorous analysis, rooted in the values of justice, equality and democracy.
FRIDE seeks to provide fresh and innovative thinking on Europe’s role on the international stage. As a prominent European think tank, FRIDE benefits from political independence, diversity of views and the intellectual background of its international staff.
South-South Cooperation in Latin America and the Caribbean: Ways Ahead from Accra
Below I have copy and pasted the opening of the document. Click the link above to download the PDF to your desktop. It's only 6 pages and not a bad read. Enjoy.
South-South cooperation has gained prominence in global development policies as a result of its inclusion in the Accra Agenda for Action, the September 2008 agreement which reinforces the aid effectiveness principles of the Paris Declaration. This opens up an important forum for encouraging South-South cooperation as a mechanism for horizontal learning and for promoting the development of national capacities. However, strengthening South-South cooperation at the conceptual and operational levels still poses major challenges, as does improving the measurement of its scale and impact.
Looking to the new task team on South-South Cooperation within the Working Group on Aid Effectiveness (WP-EFF), the following pages aim to analyze the opportunities and challenges of South-South cooperation in Latin America and the Caribbean. As a region containing countries with numerous similarities in their political and institutional history and patterns of social and economic development, Latin America and the Caribbean constitutes a privileged environment where a number of shared agendas are already evolving. However, the operationalisation of South-South cooperation within the framework of the Accra Agenda for Action and the Paris Declaration also faces a series of specific circumstances1 that future political decisions and analytical work need to address in concrete ways.
The ideas expressed in this document stem from the joint reflections of two researchers from the Colombian organization Enlaza and the European think tank FRIDE, respectively. The analysis has benefit ted particularly from bilateral talks with Latin American and European experts over the past three months, on the one hand, and a workshop held on 6 March 2009 in Bogota, on the other. Both authors wish to express their deep gratitude to all interviewees for sharing their vision on South-South cooperation, which is increasingly important to Latin America and the Caribbean.
María Clara Sanín Betancourt, Nils-Sjard Schulz of FRIDA
-- Fundación para las Relaciones Internacionales y el Diálogo Exterior
About FRIDE
FRIDE is a think tank based in Madrid that aims to provide the best and most innovative thinking on Europe’s role in the international arena. It strives to break new ground in its core research interests of peace and security, human rights, democracy promotion, and development and humanitarian aid, and mould debate in governmental and non-governmental bodies through rigorous analysis, rooted in the values of justice, equality and democracy.
FRIDE seeks to provide fresh and innovative thinking on Europe’s role on the international stage. As a prominent European think tank, FRIDE benefits from political independence, diversity of views and the intellectual background of its international staff.
Thursday, March 26, 2009
China scales back Africa investments, Africa becoming weary of Chinese loans backed by mineral wealth
Lydia Polgreen of the New York Times wrote a very informative piece yesterday about how the global economic crisis is affecting China's appetite for risk taking in Africa.
One year ago commodities where at record setting prices and China was growing in the double digits. It was desperate to secure resource wealth to fuel its growing economy and Africa seemed like a logical place to venture.
Unlike their western counterparts, Chinese companies did not think twice about entering some deals that would otherwise make their American, Canadian or European competitors cringe.
Lydia Polgreen writes that once upon a time, “French colonists once called Guinea a geological scandal, so rich are its deposits of valuable minerals. Despite years of mining and billions in profits, Guinea remains one of the poorest and least developed countries in Africa.”
This is of course, the exact reason China looked to places like Africa and South America to feed their commodity demand.
Guinean and Chinese workers at the construction site, working on
building a $50 million, 50,000-seat stadium in Conakry, Guinea
Despite the global slowdown, China still continues to explore potential investments but this time around China is being a bit more cautious. Philippe de Pontet, an analysis from Eurasia Group explains “We have seen in the recent past Chinese companies wade into countries nobody else would, that may be changing.”
For instance, in Guinea Chinese ambassador Huo Zhengde said in an interview that the “political situation is not very stable and the international markets are not favorable.” Referring to the fact a junta had recently seized power after the death of the country's longtime president in December.
In response, China backed away from a promised investment of $1 billion for the construction of a hydroelectric dam in Guinea.
Instead of investing in projects that will empower African countries with the infrastructure to put in place a more solid foundation for long-term growth, China is backing away and looking for bargains in the commodity sector in more stable places such as Zambia and Liberia.
Polgreen reports “trade between Africa and China grew to more than $100 billion by 2008, from less than $10 million in the 1980s. African leaders spoke openly about China’s offer of an alternative to the edicts of Western-dominated institutions like the International Monetary Fund and the World Bank.”
In the wake of the current global economic crisis change will come in many different shapes and sizes, I just wonder if the hope that China would emerge as a new epicenter of economic power and foreign direct investment for emerging markets is legitimate considering the current situation.
Click here to read the NYT piece
One year ago commodities where at record setting prices and China was growing in the double digits. It was desperate to secure resource wealth to fuel its growing economy and Africa seemed like a logical place to venture.
Unlike their western counterparts, Chinese companies did not think twice about entering some deals that would otherwise make their American, Canadian or European competitors cringe.
Lydia Polgreen writes that once upon a time, “French colonists once called Guinea a geological scandal, so rich are its deposits of valuable minerals. Despite years of mining and billions in profits, Guinea remains one of the poorest and least developed countries in Africa.”
This is of course, the exact reason China looked to places like Africa and South America to feed their commodity demand.
Guinean and Chinese workers at the construction site, working onbuilding a $50 million, 50,000-seat stadium in Conakry, Guinea
Despite the global slowdown, China still continues to explore potential investments but this time around China is being a bit more cautious. Philippe de Pontet, an analysis from Eurasia Group explains “We have seen in the recent past Chinese companies wade into countries nobody else would, that may be changing.”
For instance, in Guinea Chinese ambassador Huo Zhengde said in an interview that the “political situation is not very stable and the international markets are not favorable.” Referring to the fact a junta had recently seized power after the death of the country's longtime president in December.
In response, China backed away from a promised investment of $1 billion for the construction of a hydroelectric dam in Guinea.
Instead of investing in projects that will empower African countries with the infrastructure to put in place a more solid foundation for long-term growth, China is backing away and looking for bargains in the commodity sector in more stable places such as Zambia and Liberia.
Polgreen reports “trade between Africa and China grew to more than $100 billion by 2008, from less than $10 million in the 1980s. African leaders spoke openly about China’s offer of an alternative to the edicts of Western-dominated institutions like the International Monetary Fund and the World Bank.”
In the wake of the current global economic crisis change will come in many different shapes and sizes, I just wonder if the hope that China would emerge as a new epicenter of economic power and foreign direct investment for emerging markets is legitimate considering the current situation.
Click here to read the NYT piece
Wednesday, March 25, 2009
Banco del Sur
In 2007 the countries of Venezuela, Argentina, Brazil, Bolivia, Ecuador, Uruguay and Paraguay formed Banco del Sur (Bank of the South). The bank if finally opening its doors, and, not surprisingly has made few headlines up in North America.
Banco del Sur will launch operations with a initial $10 billion in capital for loans and other programs, reported Venezuela's state news agency ABN.
Contributions break down as follows. Venezuela, Argentina, Brazil will each contribute $2 billion. Bolivia, Ecuador, Uruguay and Paraguay will pool together the other $4 billion.
Venezuela's finance minister Alí Rodríguez told media yesterday, he believes the Presidents of Banco del Sur's member countries know it is necessary to advance regional integration of energy, infrastructure and finance.
Sounds all fine and dandy, but easier said than done. It would be some great ideal if Latin America's commodity producers could come together and form some kind of financial system to trade their goods (one random thought).
It would also be nice if inter-regional trade could be made easier.
Yes... you can drive from Asuncion, Paraguay to La Paz, Bolivia but it will be ONE HECK OF A JOURNEY. Remember to pack extra shocks for your car too.
Good idea to keep watch on this bank and see how things progress in the coming months.
Banco del Sur will launch operations with a initial $10 billion in capital for loans and other programs, reported Venezuela's state news agency ABN.
Contributions break down as follows. Venezuela, Argentina, Brazil will each contribute $2 billion. Bolivia, Ecuador, Uruguay and Paraguay will pool together the other $4 billion.
Venezuela's finance minister Alí Rodríguez told media yesterday, he believes the Presidents of Banco del Sur's member countries know it is necessary to advance regional integration of energy, infrastructure and finance.
Sounds all fine and dandy, but easier said than done. It would be some great ideal if Latin America's commodity producers could come together and form some kind of financial system to trade their goods (one random thought).
It would also be nice if inter-regional trade could be made easier.
Yes... you can drive from Asuncion, Paraguay to La Paz, Bolivia but it will be ONE HECK OF A JOURNEY. Remember to pack extra shocks for your car too.
Good idea to keep watch on this bank and see how things progress in the coming months.
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