Asian Infrastructure Investment Bank (AIIB)

A former executive has claimed that China’s ruling Communist Party dominates. The Asian Infrastructure Investment Bank (AIIB) and uses it to further its interests.

About Asian Infrastructure Investment Bank (AIIB):

AIIB established itself as a multilateral development bank in 2016 with the goal of financing infrastructure projects in Asia and beyond.
The bank, headquartered in Beijing, China, has over 100 member countries, including several major economies such as the United Kingdom, Germany, and Australia.
AIIB’s mission is to foster sustainable economic growth, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors.

What is AllB?

The idea of a China-led multilateral financial institution was first floated in 2013. Operations of AIIB began in January 2016.

Initial fund: AllB started with an initial capital of US$100 billion.

Membership: The AIIB had 57 founding members. It currently has 106 members.

Focus: AllB provides funding to build dams, ports and other vital infrastructure around the region.

Shareholding: China is the largest shareholder with 27% voting rights, followed by India at 8%. Russia is the 3rd largest shareholder.

What are the Objectives of AIIB?

To foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors.
To promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions.
To promote investment in the public and private capital for development purposes, in particular for development of infrastructure and other productive sectors.
To utilize the resources at its disposal for financing such development in the region, including those projects and programs which will contribute most effectively to the harmonious economic growth of the region,
To encourage private investment in projects, enterprises and activities contributing to economic development in the region when private capital is not available on reasonable terms and conditions.

Conclusion

The history of economic growth and development has well proved that creating and developing robust financial institutions makes market forces more competitive, leading to comprehensive growth and development of society.
The AIIB can create own space by contributing to sustained economic growth leading towards improved living standard of millions of poor people across Asia and other regions.
The AIIB is still in its evolutionary phase, and it requires nurturing with democratic principles to avoid single-country dominance, such as the dominance of the USA in the IMF and World Bank.
India as an emerging economy, can play a vital role in shaping the foundation of AIIB for the cause of poor people spread across developing countries.

Read also:- Infrastructure Investments

Asian Infrastructure Investment Bank (AIIB)