International Relations

Finance Minister of Ukraine and HKS alumna, Natalie A. Jaresko MPP 1989, participated in a conversation with Future of Diplomacy Project Faculty Director R. Nicholas Burns titled “Ukraine: Making Change Happen” on September 23. Minister Jaresko commented on the current state of economic reforms and debt restructuring in Ukraine, pairing her incisive analysis with descriptions of personal experiences working at a high-level in governments in both the US and Ukraine.

The Obama administration’s negative response to China’s proposed Asian Infrastructure Investment Bank was a strategic mistake. Though some Chinese moves might be destabilising and require US resistance, this initiative should have been welcomed.

The US should be careful about opposing ventures that are popular and likely to proceed. Losing fights does not build confidence. Moreover, the new bank’s purpose — to develop infrastructure in Asia — is a good goal. The world economy needs more growth. Many emerging markets are eager to boost productivity and growth by lowering costs of transportation, improving energy availability, enhancing communications networks, and distributing clean water.

The AIIB offers an opportunity to strengthen the very international economic system that the US created and sustained. The AIIB’s designated leader, Jin Liqun, a former vice-president of the Asian Development Bank, sought advice in Washington. He engaged an American lawyer who was the World Bank’s leading specialist on governance. He also reached out to another American who had served as World Bank country director for China and then worked with the US embassy.

If the AIIB was indeed threatening the American-led multilateral economic order, as its opponents seemed to believe, then its Chinese founders chose a curiously open and co-operative way of doing so.

Africa's ability to sustain its current growth will depend largely on how quickly it will be able to shift from reliance on traditional commodity markets to modern economic structures that focus on technology-driven development. The focus on innovation is emerging as a key theme in the Africa Union's long-term strategy, Agenda 2063.