Time for an Asian Infrastructure Investment Bank
- By Dan Steinbock
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E-mail China.org.cn, October 23, 2014
According to Western media, the Asian Infrastructure Investment Bank (AIIB) is to rival the World Bank and the Asian Development Bank (ADB).
In reality, the idea of the AIIB was put forward more than a year ago; not to undermine either the World Bank or the ADB, but to deliver the promise that both have failed to deliver – sustained growth in emerging Asia.
Chinese goals
The AIIB proposal was first presented in public by Premier Li Keqiang in the prestigious Boao Forum for Asia in early April. The goal was to roll out an intergovernmental memorandum of understanding this fall and thereafter to quickly launch the bank.
The new multilateral institution would help fund infrastructure projects in Asia.
By June, China proposed doubling the registered capital of the bank from $50 billion to $100 billion, with half from Beijing and the rest from the other founding members.
China has invited India to participate in the founding of the bank and, despite some concerns; New Delhi is expected to join in as the second largest shareholder.
The idea of the bank was first put forward by Chinese leaders, including Chinese President Xi Jinping and Premier Li, during their visits to southeastern Asian countries in October 2013. In particular, Xi underscored the economic opportunities for cooperation between China and the 10 member nations of the ASEAN, including setting up an Asian investment bank to support regional connectivity for transportation, telecom and energy projects across the region.
