China Money Report
The World Bank, run from Washington D.C.,is not immune from becoming completely
out of touch. Staffed by academics who have spent entire careers inside Ivory
Towers they are currently pushing the U.S. administration for more funds to
expand World Bank Lending. The global media are castigating the Trump
administration for demanding changes at theWorld Bank.
Jim Yong Kim, the World Bank’s president, has been pushing for extra financial
resources and had hoped that shareholders would agree on at least a timetable
for the increase at this week’s annual meetings in Washington.
The problem…the World Bank’s largest borrower is China. Yes, China, the same
country that has 3 trillion in currency reserves. China is the biggest recipient
of development loans borrowing $2.4b annually.These are fund thats could be going
to small developing countries in Africa to alleviate poverty or how about areas
in the U.S. that now more closely resemble 2nd and 3rd word countries than they
do the lush, wealthy confines of the Washington D.C.area.
China has become the world’s largest creditor.The China Development Bank and
the Export-Import Bank of China (CHEXIM) together lent some US$684 billion
between 2007 and the end of 2014. The next six biggest lenders, which include
the World Bank, the Japan-led Asian Development Bank and the Inter-American
Development Bank,have provided finance worth US$700 billion. These are
2014 numbers, China is lending more than the World Bank and Asian Development
Bank combined and that is before we even start to take the Belt-n-Road projects
China also has the world’s largest bank system. Chinese bank assets hit $33tn
at the end of 2016, versus $31tn for the eurozone, $16tn for the US and $7tn
The World Bank has clearly become yet anther D.C. institution surviving solely
to keep themselves employed.