Issue link: http://resourceworld.uberflip.com/i/492982
a p r i l / m a y 2 0 1 5 www.resourceworld.com 15 With an industrializing and urbaniz- ing China as the engine of growth on the Asian end in the east and a slowly recover- ing European Union as an existing global economic powerhouse in the west, the foundation of a continent-wide massive economic system is well in place. The eco- nomic, social and cultural possibilities of the majority of humanity on earth today can be seen in its millennia of history. The US $50 billion is only an initial capitalization. The AIIB's wealthier found- ing countries have much deeper pockets. China, for example, has about US $4 trillion in its foreign exchange reserve and is look- ing for alternative investment instruments to the US treasury, which has accumulated some nicely appreciated value recently. The total deposits of this high-saving economy were close to US $18 trillion by the end of 2013. Countries of either size or wealth such as India, Indonesia, Singapore and Qatar are also key players. The financ- ing of this multi-trillion-dollar project by further capitalization of the AIIB and other sources of funding is highly probable. Though Australia has not joined, for understandable geopolitical considerations of its current government, its former Prime Minister Kevin Rudd said, "…I support it, and I support the Asian Infrastructure (Investment) Bank, because Asia can do infrastructure efficiently, and it needs corNErstoNE of thE NExt supEr-cyclE With the October 2014 launch of the Asian Infrastructure Investment Bank (AIIB) in Beijing, (and a capital of US $50 billion), China laid the cornerstone for the next commodity Super-Cycle. This may even be an understatement. The development marks the beginning of the realization of an ambition estimated at US $ 21 trillion to re-establish the trade routes (both by land and sea) that connected the civilizations and peoples between East and West across the Eurasian continent for thousands of years. This, truly the best of both worlds, is not just 'pie in the sky', but the significant upgrading of an existing land road and navigable sea lane. The project behind the creation of the AIIB is targeted at some of the poorest regions in the world, with huge potential for industri- alization and the urbanization of a very large population eager to come out of poverty. For geopolitical and geographical reasons (many countries are landlocked), some of them have been left out of modernity thus far. The creation of modern infrastructure, linking the continent, offers them tremendous access to trade and resources from much larger markets for the development of these economies. No wonder 21 countries, representing a total population of 3.67 billion (only part of the total population of the continent), have eagerly joined the AIIB, with more to come. Sources: Xinhua (Silk Road routes); United Nations (rail entry points).