Asian Infrastructure Investment Bank (AIIB)

 

  • This is an international financial institution
  • It aims to support the building of infrastructure in the Asia Pacific region
  • It is an initiative of government of China
  • Started operation in 2016
  • HQ : Beijing, China
  • 86 members (More are expected to join)
  • The capital of the bank is $100 billion, equivalent to 2/3 of the capital of the Asian Development Bank and about half that of the World Bank
  • China will remain the biggest shareholder in the bank (India second largest), and the shares of non-Asian countries will be restricted to 25% of the total
  • China is the largest shareholder with 26.06% voting shares. India is the second largest shareholder with 7.5% voting shares followed by Russia (5.93%) and Germany (4.5%)
  • The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia Pacific region.
  • AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian Development Bank (ADB), which the AIIB says are dominated by developed countries like the United States and Japan
  • AIIB will concentrate on infrastructure
  • Critics (such as the US) warn that the China-led bank may fail to live up to the environmental, labour and procurement standards that are essential to the mission of development lenders. China says the AIIB will adopt international best practises. The UK, Germany, and France have now decided to join in as founding members, drawing protests from the USA