China to launch its own version of Marshall plan
Sunday, 6 December 2009
From Fazle Rashid
NEW YORK, Dec 04: Marshall plan was unveiled after the World War 11 to rebuild the war ravaged Europe. China, awash with money, in collaboration with the World Bank, will soon launch its version of the " Marshall plan" for sub-Saharan Africa. Beijing's decision to concentrate in Africa is to extend its global political and diplomatic clout.
China is planning to relocate some of its lower value manufacturing units like toys and footfear to sub-Saharan Africa. China is devising new ideas as to how to use its vast foreign currency reserve now totalling nearly $3.0 trillion to " stimulate demand in developing countries".
China has already worked out an attractive stimulus package amounting to $10 billion for next three years for poor countries. The package includes announcement of lowering of tariff on 60 per cent imports from the poor countries and debt forgiveness for several countries.
The critics have already described the new Chinese move as Beijing's attempt at propping up unpopular regimes and as a new form of colonialism. China's goal will undercut Africa's weak industrial base, many fear.
President Obama's job summit at the White House the other day yielded no result but he promised to do something before long to bring down the unemployment now hovering in double digit. Obama told business executives that he would entertain every demonstrably good idea for creating jobs but cautioned his guests that "our resources are limited ", the New York Times (NYT) said.
On Capitol Hill Ben Bernanke, Chairman of the Fed Reserve told Senate Baking Committee at a testy hearing on his confirmation for a second term that " Jobs are the issue right now". Bernanke defended his record but agreed that the central bank's lapses contributed to the financial crisis. More important than Bernanke winning a second term is the issue whether the Fed Reserve will be left as it is now or will see its regulatory authority clipped mercilessly.
Some lawmakers even have gone to the length of stating that a new regulatory body be created an idea vehemently opposed by Ben Bernanke. Bernanke's first term as Chairman of Fed Reserve ends on December 31 2010. 'A financial crisis of the severity we have experienced must prompt financial institutions and regulators alike to undertake unsparing self-assessment of their past performance,' NYT quoted Bernanke as saying to the Senators.
European Central Bank, despite an International Monetary Fund (IMF) warning, is all set to wind up emergency measures that had kept alive the sinking financial institutions. The central bank's decision was described as progressive, timely and gradual phasing out of the exceptional measure taken to shore up the eurozone financial system.
The United Nations in a warning issued the other day made it clear that rich countries are not likely to make any specific offers of financial assistance to the poor countries at this week's summit on climate change to be held in Copenhagen. A UN official said affluent nations will agree that $100 billion a year will be required to off set the impact of the climate change. Who will pay how much will remain a sticking point even after they agree to finance the project.
All three meetings on which the poor nations had pinned their faith, one on food, the other the WTO meeting and now the much vaunted climate change summit are most likely meet to failure, aggravating dismay and anguish in poor countries.
NEW YORK, Dec 04: Marshall plan was unveiled after the World War 11 to rebuild the war ravaged Europe. China, awash with money, in collaboration with the World Bank, will soon launch its version of the " Marshall plan" for sub-Saharan Africa. Beijing's decision to concentrate in Africa is to extend its global political and diplomatic clout.
China is planning to relocate some of its lower value manufacturing units like toys and footfear to sub-Saharan Africa. China is devising new ideas as to how to use its vast foreign currency reserve now totalling nearly $3.0 trillion to " stimulate demand in developing countries".
China has already worked out an attractive stimulus package amounting to $10 billion for next three years for poor countries. The package includes announcement of lowering of tariff on 60 per cent imports from the poor countries and debt forgiveness for several countries.
The critics have already described the new Chinese move as Beijing's attempt at propping up unpopular regimes and as a new form of colonialism. China's goal will undercut Africa's weak industrial base, many fear.
President Obama's job summit at the White House the other day yielded no result but he promised to do something before long to bring down the unemployment now hovering in double digit. Obama told business executives that he would entertain every demonstrably good idea for creating jobs but cautioned his guests that "our resources are limited ", the New York Times (NYT) said.
On Capitol Hill Ben Bernanke, Chairman of the Fed Reserve told Senate Baking Committee at a testy hearing on his confirmation for a second term that " Jobs are the issue right now". Bernanke defended his record but agreed that the central bank's lapses contributed to the financial crisis. More important than Bernanke winning a second term is the issue whether the Fed Reserve will be left as it is now or will see its regulatory authority clipped mercilessly.
Some lawmakers even have gone to the length of stating that a new regulatory body be created an idea vehemently opposed by Ben Bernanke. Bernanke's first term as Chairman of Fed Reserve ends on December 31 2010. 'A financial crisis of the severity we have experienced must prompt financial institutions and regulators alike to undertake unsparing self-assessment of their past performance,' NYT quoted Bernanke as saying to the Senators.
European Central Bank, despite an International Monetary Fund (IMF) warning, is all set to wind up emergency measures that had kept alive the sinking financial institutions. The central bank's decision was described as progressive, timely and gradual phasing out of the exceptional measure taken to shore up the eurozone financial system.
The United Nations in a warning issued the other day made it clear that rich countries are not likely to make any specific offers of financial assistance to the poor countries at this week's summit on climate change to be held in Copenhagen. A UN official said affluent nations will agree that $100 billion a year will be required to off set the impact of the climate change. Who will pay how much will remain a sticking point even after they agree to finance the project.
All three meetings on which the poor nations had pinned their faith, one on food, the other the WTO meeting and now the much vaunted climate change summit are most likely meet to failure, aggravating dismay and anguish in poor countries.