World bank, formerly International Bank for Reconstruction and Development(IBRD) used their resources as leverage to persuade states to adopt liberal measures often in the face of strong opposition. The condition stipulates that funds would only be available to states that committed to the liberal measures provided for in the instrument of establishment even if the result was a reduction in social spending, increase income inequality, and even increased poverty. This was applied to developing counties during the debt crisis of the 1980s and 1990s as well as the Asian financial crisis of 1998. Under IBRD Article XI, section 2 stipulates that; each government on whose behalf this agreement is signed shall deposit with the government of the United States of America an instrument setting forth that it has accepted this agreement in accordance with its law and has taken all steps necessary to enable it to carry out all of its obligations under this agreement. This particular stipulation is a clear indication of American direct control over the World Bank despite being an International Organization supposedly to be administered on a consensus basis by the member states. These international financial institutions are political institutions advancing western control over people and resources in the developing countries.
According to the World Bank, China’s $18 trillion economy accounts for 18 percent of global GDP, making it the world’s second-largest economy after the United States, which accounts for about 25 percent.
How did SSD economic policy makers failed to make appropriate strategic economic agreement with China? Under a build-operate-transfer (BOT) contract, China can undertake infrastructure development( roads, airports and bridges), electricity, technology and agriculture. There is nothing wrong in seeking strong economic ally in the east while having the west on other essential areas of cooperation. The petty loans from the Middle East countries proved to be a drop in the ocean though they are accumulating with nothing visibly achieved.
#TryChina.