The Asian Infrastructure Investment Bank (AIIB)
is a multilateral development bank and international financial institution that
aims to collectively improve economic and social outcomes in Asia. It is the
world's second largest multi-lateral development institution. The bank started
operation after the agreement entered into force on 25 December 2015, after
ratifications were received from 10 member states holding a total number of 50%
of the initial subscriptions of the Authorized Capital Stock.
The United Nations has
addressed the launch of AIIB as having potential for "scaling up financing
for sustainable development" and to improve the global economic
governance. The starting capital of the bank was US$100 billion, equivalent to
2/3 of the capital of the Asian Development Bank and about half that of the
World Bank.
The Asian
Infrastructure Investment Bank (AIIB) is a multilateral development bank that
focuses on financing infrastructure projects in Asia-Pacific countries. Here are some key points about the AIIB:
Establishment:
The AIIB was proposed by China and was officially established on December 25,
2015. It began operations in January 2016. The bank was created with the aim of
addressing the infrastructure funding gap in Asia and promoting regional development.
Membership:
The AIIB's membership consists of countries from Asia, Oceania, Europe, Africa,
and the Americas.
Governance:
The governance structure of the AIIB includes a Board of Governors, a Board of
Directors, and a President. Decision-making in the bank is based on the
principle of equitable representation, with each member country having a
certain number of votes based on its subscribed capital.
Purpose: The primary purpose of the AIIB is to provide financing for infrastructure projects in Asia-Pacific countries. These projects may include transportation, energy, telecommunications, water supply, and sanitation, among others. The bank aims to promote sustainable development and regional connectivity through its investments.
Operations:
The AIIB provides loans, guarantees, and other financial products to support
infrastructure development projects. It also offers technical assistance and
advisory services to help countries prepare and implement projects effectively.
The bank collaborates with other multilateral development banks, international
organizations, and the private sector to leverage resources and expertise.
Focus
on Sustainability: Similar to other multilateral
development banks, the AIIB places an emphasis on sustainability and
environmental protection in its operations. It seeks to support projects that
are environmentally friendly, socially inclusive, and economically viable in
the long term.
