Reconstruction from Hurricane Irma is the perfect project for both the World Bank and the AIIB
Global natural disasters occur several times per decade, and quite often the bill for recovery is left to charities, a handful of wealthy governments, or in some cases not at all. ¬†But in the wake of Hurricane Irma, which has devastated far more countries in the Caribbean than it has cities and states on the U.S. mainland, perhaps the perfect agencies to assist in their rebuilding are the World Bank and the Asian Infrastructure Investment Bank (AAIB).
World Bank Mission Statement:
The¬†World Bank’s mission statement¬†is ‚Äúto reduce poverty, and improve living standards by promoting sustainable growth and investment in people.‚ÄĚ
AIIB Mission Statement:
AIIB offers sovereign and non-sovereign financing for sound and sustainable projects in energy and power, transportation and telecommunications, rural infrastructure and agriculture development, water supply and sanitation, environmental protection, and urban development and logistics.
The significance of using these two institutions to fund the reconstruction of countries such as¬†Antigua and Barbuda, Saint Martin, Saint Barthelemy, Anguilla, Puerto Rico, Cuba, Haiti, and Turks and Caicos is that despite the fact that most are considered protectorates of larger nations, they remain self-governing and in need of vast resources to fix their antiquated infrastructures.
For decades global financial institutions like the IMF and World Bank have used their funding to help digress economic growth in nations rather than to build and expand it, and where the money was primarily used to pay back debt to international banks rather than to eliminate poverty and modernize infrastructure. ¬†And while the AIIB in its infancy has sought to alleviate this negative history by focusing primarily on building up poorer economies with much needed infrastructure, Hurricane Irma could act as a fresh start for these global banking facilities to finally change course and actually fulfill the missions they were created to accomplish so many years ago.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.