Politics & Policy media – Page 4 – Current affairs: Unveiled, dissected, and explained.

China and multilateral financial institutions

Q: “has China shown the IMF, the deal that has supposedly been struck between the China EXIM Bank and Sri Lanka?”

A: “We have not seen the details of this yet, but this again should come out through our routine engagement.”
Transcript of the Press Briefing on the 2023 China Article IV Consultation Mission

That exchange, in the latest press briefing by the IMF on China, caused us to revisit our post on Sri Lanka’s debt situation and provides an opportunity to expand on the broader geopolitical issues at play.

China’s interactions with multilateral financial institutions embody its larger international ambitions. Through strategic policy choices and leveraging its creditor status, China is actively working to transform these institutions, seeking a balance between its duties and rights, and striving to infuse the global financial governance structure with its own brand of influence.

Bhutan elections: Situational brief

Bhutan’s unique position between China and India has significant implications for regional security. While historically isolated, Bhutan has begun opening up to foreign influence, carefully managing its diplomatic ties. Its relationship with India is crucial, with India providing economic support and Bhutan serving as a buffer state. Bhutan’s diplomatic approach aims to balance relations with its neighbors and engage in global initiatives aligned with its developmental goals and values.

Bhutan is preparing for its National Assembly elections, which are scheduled to take place on 30 November 2023 and 9 January 2024 . The political landscape has evolved since the 2018 elections when the Druk Nyamrup Tshogpa (DNT) won a majority of seats, and its leader, Lotay Tshering, became the Prime Ministe. The DNT has continued to strengthen its position, winning four by-elections during the 2018–2023 term.

Sahra Wagenknecht – profile

Sahra Wagenknecht, a prominent figure in German politics known for her charisma and populist leanings, has launched a new political party. The Alliance Sahra Wagenknecht (BSW) is her venture to reshape the political spectrum by combining elements of left-populism with certain right-wing ideologies. Her objective is to provide a political home for those disillusioned with mainstream parties, particularly targeting voters who have shown an inclination towards the far-right Alternative for Germany (AfD) by addressing their anti-establishment sentiments and concerns over issues such as unchecked migration and the financial burdens of environmental initiatives.

Bangladesh elections: Situational brief

Bangladesh is approaching a critical period in its political landscape, with general elections scheduled for January 202. The political climate is described as tumultuous, with previous elections in 2014 and 2018 being marred by controversy. The opposition parties, in particular, are pressing for the resignation of the government led by Sheikh Hasina, who has been in power since 2009, to ensure a free and fair election.

The political unrest is not solely based on electoral politics but is also intertwined with an economic crisis that the country is currently facing. The Bangladesh Nationalist Party (BNP) is actively mobilizing the populace with a focus on the upcoming elections amid this challenging economic scenario.

Sri Lanka – debt update

An interesting wrinkle in Sri Lanka’s ongoing economic resurrection efforts, and one with broader geopolitical implications.

Sri Lanka had reached an agreement with the Export-Import Bank of China (China Exim Bank) on key terms and principles for restructuring its debt, which marks a significant step towards unlocking further financial aid from the International Monetary Fund (IMF). The agreement, made in October, encompasses approximately $4.2 billion of Sri Lanka’s outstanding debt.

The IMF is expected to analyze the details of this tentative agreement, which are crucial for Sri Lanka to progress with its IMF program. The Sri Lankan government is awaiting approval from the IMF for a second tranche of funds, and a debt restructuring proposal from the Paris Club consortium..