The Asian Infrastructure Investment Bank (AIIB) is a
multilateral development bank
An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, al ...
that aims to improve economic and social outcomes in
Asia
Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an are ...
. The bank currently has 105 members, including 14 prospective members from around the world.
The breakdown of the 105 members by continents are as follows: 42 in
Asia
Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an are ...
, 26 in
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...
, 20 in
Africa
Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
, 8 in
Oceania
Oceania (, , ) is a geographical region that includes Australasia, Melanesia, Micronesia, and Polynesia. Spanning the Eastern and Western hemispheres, Oceania is estimated to have a land area of and a population of around 44.5 million ...
, 8 in
South America
South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the northern tip of the continent. It can also be described as the sout ...
, and 1 in
North America. 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
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoniz ...
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$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
100 billion, equivalent to of the capital of the
Asian Development Bank
The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966, which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field offic ...
and about half that of the
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
.
The bank was proposed by
China in 2013 and the initiative was launched at a ceremony in
Beijing
}
Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
in October 2014. It received the highest
credit rating
A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting.
...
s from the
three biggest rating agencies in the world, and is seen as a potential rival to the
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
and
IMF.
History
The proposal for the creation of an "Asian Infrastructure Investment Bank" was first made by the Vice Chairman of the China Center for International Economic Exchanges, a Chinese thinktank, at the Bo'ao Forum in April 2009. The initial context was to make better use of Chinese foreign currency reserves in the wake of the global financial crisis.
The initiative was officially launched by
Chinese leader Xi Jinping
Xi Jinping ( ; ; ; born 15 June 1953) is a Chinese politician who has served as the general secretary of the Chinese Communist Party (CCP) and chairman of the Central Military Commission (CMC), and thus as the paramount leader of China, ...
on a state visit to Indonesia in October 2013. The Chinese government has been frustrated with what it regards as the slow pace of reforms and governance, and wants greater input in global established institutions like the
IMF,
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
and
Asian Development Bank
The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966, which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field offic ...
which it claims are heavily dominated by American, European and Japanese interests.
In April 2014,
Chinese Premier
The premier of the State Council of the People's Republic of China, commonly called the premier of China and sometimes also referred to as the prime minister, is the head of government of China and leader of the State Council. The premier is ...
Li Keqiang delivered a keynote speech at the opening of the
Boao Forum for Asia and said that China was ready to intensify consultations with relevant parties in and outside Asia on the preparations for the Asian Infrastructure Investment Bank.
The
Asian Development Bank Institute
The Asian Development Bank Institute (ADBI) is an Asian think tank focused on identifying effective development strategies for Asia and the Pacific, and on providing support to ADB member countries in managing development challenges. It was esta ...
published a report in 2010 which said that the region requires $8 trillion to be invested from 2010 to 2020 in infrastructure for the region to continue economic development.
In a 2014 editorial, ''
The Guardian
''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...
'' newspaper wrote that the new bank could allow Chinese capital to finance these projects and allow it a greater role to play in the economic development of the region commensurate with its growing economic and political clout. But until March 2015, China in the ADB has only 5.47 percent voting right, while Japan and US have a combined 26 percent voting right (13 percent each) with a share in subscribed capital of 15.7 percent and 15.6 percent, respectively. Dominance by both countries and slow reforms underlie China's wish to establish the AIIB, while both countries worry about China's increasing influence.
In June 2014 China proposed doubling the registered capital of the bank from $50 billion to $100 billion and invited India to participate in the founding of the bank. On 24 October 2014, twenty-one countries signed a Memorandum of Understanding (MOU) regarding the AIIB in Beijing, China: Bangladesh, Brunei, Cambodia, India, Kazakhstan, Kuwait, Laos, Malaysia, Myanmar, Mongolia, Nepal, Oman, Pakistan, Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam. Indonesia's joining was slightly delayed due to their new presidential administration not being able to review the membership in time. Indonesia signed the MOU on 25 November 2014.
The U.S. allegedly tried to keep Australia and South Korea from becoming prospective founding members, after they expressed an interest in it. However, both Australia and South Korea applied to join the bank in March 2015.
Hong Kong's
Financial Secretary John Tsang
John Tsang Chun-wah, GBM, JP (; born Mui; born 21 April 1951) is a Hong Kong former senior civil servant and government official who was the longest-serving Financial Secretary in the Special Administrative Region period to date.
Born in ...
announced in his budget speech in February 2015 that the territory would join the AIIB. It did however not become one of the prospective founding members and negotiated as part of the Chinese delegation.
In early March 2015, the United Kingdom's
Chancellor of the Exchequer,
George Osborne
George Gideon Oliver Osborne (born Gideon Oliver Osborne; 23 May 1971) is a former British politician and newspaper editor who served as Chancellor of the Exchequer from 2010 to 2016 and as First Secretary of State from 2015 to 2016 in the ...
, announced that the UK had decided to apply to join the Bank, becoming the third Western country to do so after Luxembourg and New Zealand. The announcement was criticised by the U.S.
Obama Administration. A US government official told ''
Financial Times
The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Ni ...
'', "We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power." The official further stated that the British decision was taken after "no consultation with the US." In response, the UK indicated that the subject had been discussed between Chancellor Osborne and US Treasury Secretary
Jack Lew
Jacob Joseph Lew (born August 29, 1955) is an American attorney and politician who served as the 76th United States Secretary of the Treasury from 2013 to 2017. A member of the Democratic Party, he also served as the 25th White House Chief of S ...
for several months preceding the decision. It was further stated that joining the bank as a founding member would allow the UK to influence the development of the institution. By encouraging Chinese investments in the next generations of nuclear power plants, Osborne announced that "the
City of London
The City of London is a city, ceremonial county and local government district that contains the historic centre and constitutes, alongside Canary Wharf, the primary central business district (CBD) of London. It constituted most of London f ...
would become the base for the first clearing house for the yuan outside Asia."
Following the criticism, the
White House National Security Council
The United States National Security Council (NSC) is the principal forum used by the President of the United States for consideration of national security, military, and foreign policy matters. Based in the White House, it is part of the Exe ...
, in a statement to ''
The Guardian
''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...
'', declared,
Our position on the AIIB remains clear and consistent. The United States and many major global economies all agree there is a pressing need to enhance infrastructure investment around the world. We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks. Based on many discussions, we have concerns about whether the AIIB will meet these high standards, particularly related to governance, and environmental and social safeguards The international community has a stake in seeing the AIIB complement the existing architecture, and to work effectively alongside the World Bank and Asian Development Bank.
Several other European states – including Germany, France and Italy – followed the UK's decision to join the AIIB in March. German Finance Minister
Wolfgang Schäuble
Wolfgang Schäuble (; born 18 September 1942) is a German lawyer, politician and statesman whose political career has spanned for more than five decades. A member of the Christian Democratic Union (CDU), he is one of the longest-serving politi ...
stated, "We want to contribute our long-standing experience with international financial institutions to the creation of the new bank by setting high standards and helping the bank to get a high international reputation." In March 2015, the South Korean Ministry of Strategy and Finance announced that it, too, is planning to join the AIIB, citing its potential in helping South Korean companies win deals in infrastructural projects as well expanding South Korea's influence in international banking as a founding member. States could indicate their interest in becoming a Prospective Founding Member until 31 March 2015.
Negotiations took place in the framework of five Chief Negotiators Meetings (CNMs) which took place between November 2014 and May 2015. The Articles of Agreement, the legal framework of the bank, were concluded in the fifth CNM. It was signed on 29 June 2015 by 50 of the named 57 prospective founding members in Beijing, while the other seven signed later.
On 25 December 2015, the Articles of Agreement entered into force. On 16 January 2016, the board of governors of the bank convened its inaugural meeting in Beijing and declared the bank open for business.
Jin Liqun was elected as the bank's president for a five-year term. 17 states (Australia, Austria, Brunei, China, Georgia, Germany, Jordan, Luxembourg, Mongolia, Myanmar, the Netherlands, New Zealand, Norway, Pakistan, Singapore, South Korea and the United Kingdom) together holding 50.1% of the initial subscriptions of Authorized Capital Stock, had deposited the instrument of ratification for the agreement, triggering entry into force, and making them all founding members
and bringing the Articles of Agreement, the bank's charter, into force. 35 other states followed later, taking the amount of Authorized Capital Stock held by the 29 members of the bank to 74%.
AIIB within PRC policy thinking
Fostering long-term economic development
The Asian Infrastructure Investment Bank can be construed as a natural inter-national extension of the
infrastructure-driven economic development framework that has sustained the rapid economic growth of China since the adoption of the
Chinese economic reform
The Chinese economic reform or reform and opening-up (), known in the West as the opening of China, is the program of economic reforms termed " Socialism with Chinese characteristics" and " socialist market economy" in the People's Republic of ...
under
Chinese leader Deng Xiaoping
Deng Xiaoping (22 August 1904 – 19 February 1997) was a Chinese revolutionary leader, military commander and statesman who served as the paramount leader of the People's Republic of China (PRC) from December 1978 to November 1989. After CCP ...
. It stems from the notion that long-term economic growth can only be achieved through systematic, and broad-based investments in infrastructure assets – in contrast with the more short-term "export-driven" and "domestic consumption" development models favored by mainstream Western
Neoclassical economists
Neoclassical economics is an approach to economics in which the production, consumption and valuation (pricing) of goods and services are observed as driven by the supply and demand model. According to this line of thought, the value of a good ...
and pursued by many developing countries in the 1990s and the first decade of the 21st century with generally disappointing results.
Infrastructure as regional integration and foreign policy tool
In his 29 March 2015 speech at the
Boao Forum for Asia (BFA) annual conference, Chinese leader
Xi Jinping
Xi Jinping ( ; ; ; born 15 June 1953) is a Chinese politician who has served as the general secretary of the Chinese Communist Party (CCP) and chairman of the Central Military Commission (CMC), and thus as the paramount leader of China, ...
said:
e Chinese economy is deeply integrated with the global economy and forms an important driving force of the economy of Asia and even the world at large. China's investment opportunities are expanding. Investment opportunities in infrastructure connectivity as well as in new technologies, new products, new business patterns, and new business models are constantly springing up. China's foreign cooperation opportunities are expanding. We support the multilateral trading system, devote ourselves to the Doha Round
The Doha Development Round or Doha Development Agenda (DDA) is the trade-negotiation round of the World Trade Organization (WTO) which commenced in November 2001 under then director-general Mike Moore. Its objective was to lower trade barriers ...
negotiations, advocate the Asia-Pacific free trade zone, promote negotiations on regional comprehensive economic partnership, advocate the construction of the Asian Infrastructure Investment Bank (AIIB), boost economic and financial cooperation in an all-round manner, and work as an active promoter of economic globalization
Economic globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two others being political globalization and cultural globalization, as well as the general term of globalization.
Econom ...
and regional integration.
Xi insisted also that the Silk Road Fund and the Asian Infrastructure Investment Bank would foster "economic connectivity and a new-type of industrialization
n the Asia Pacific area and
hus
Hus or HUS may refer to:
Medicine
* Hemolytic-uremic syndrome, a disease characterized by haemolytic anemia, kidney problems and a low platelet count
People
* Hus (surname)
* Hus family, an 18th-century French dynasty of ballet dancers and ac ...
promote the common development of all countries as well as the peoples' joint enjoyment of development fruits."
Legal basis and membership
The Articles of Agreement form the legal basis for the Bank. 57 Prospective Founding Members (PFM) named in annex A of the agreement are eligible to sign and ratify the Articles, thus becoming a member of the Bank. Other states, which are parties to the
International Bank for Reconstruction and Development or the
Asian Development Bank
The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966, which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field offic ...
may become members after approval of their accession by the bank.
The Articles were negotiated by the Prospective Founding Members, with Hong Kong joining the negotiations via China.
Members
The 57 Prospective Founding Members can become Founding Members through:
* Signing the Articles of Agreement in 2015
* Ratifying the Articles of Agreement in 2015 or 2016
All Prospective Founding Members have signed the Articles, 52 of which have ratified them, comprising 92% of the shares of all PFM. The formal actions towards becoming a Founding Member are shown below, as well as the percentage of the votes and of the shares, in the event all prospective founding states become parties, and no other members are accepted.
In March 2017, 13 other states were granted prospective membership: 5 regional (Afghanistan, Armenia, Fiji, Timor Leste and Hong Kong, China) and 8 non-regional: Belgium, Canada, Ethiopia, Hungary, Ireland, Peru, Sudan and Venezuela. In May 2017, 7 states were granted prospective membership: 3 regional (Bahrain, Cyprus, Samoa) and 4 non-regional (Bolivia, Chile, Greece, Romania). In June 2017, 3 other states were granted prospective membership: 1 regional (Tonga) and 2 non-regional (Argentina, Madagascar).
In 2018, 7 other states were granted prospective membership: 1 regional (Lebanon) and 6 non-regional (Algeria, Ghana, Libya, Morocco, Serbia, Togo). In 2019, 7 other states were granted prospective membership: 7 non-regional (Djibouti, Rwanda, Benin, Côte d'Ivoire, Guinea, Tunisia, Uruguay). They become members after finishing their domestic procedures. As of 8 August 2022, the total number of countries approved for membership of AIIB is 105 (Regional Members: 47, Non-Regional Members: 45, Prospective Members: 13).
Countries holding at least 2.0% of either the total subscriptions or voting powers are in bold.
Members
Prospective Members
Dependent territories
The Articles of Agreement provide for non-sovereign entities to become members of the bank. In addition to the requirements for sovereign states, the membership of dependent territories must be supported by the state responsible for its external relations.
Non-members
The Czech Republic, Nigeria, Iraq, Colombia, Ukraine are considering joining the AIIB as members. Mexico, Japan and the United States have no immediate intention to participate. Taiwan's request to become a Prospective Founding Member was rejected by China as it does not consider the former to be a sovereign state.
* Taiwan applied for PFM to join the AIIB via
Taiwan Affairs Office
The Taiwan Affairs Office of the State Council is an administrative agency under the State Council of Mainland China. It is responsible for setting and implementing guidelines and policies related to the Republic of China (Taiwan), as stipul ...
on 31 March, possibly under the name "Chinese Taipei", but was rejected by the Multilateral Interim Secretariat of the AIIB on 13 April, without any reason stated. However, mainland China claims that there is the possibility for Taiwan to obtain membership at a later date.
[Taiwan unable to become AIIB prospective founding member: China]
Retrieved 13 April 2014. Foreign Ministry spokeswoman
Hua Chunying
Hua Chunying (; born 24 April 1970) is a Chinese official and former diplomat serving as spokesperson for the Ministry of Foreign Affairs of the People's Republic of China since 2012 and as the Assistant Minister of Foreign Affairs since 2021. H ...
said that Taiwan should avoid creating a "two Chinas" or "one China, one Taiwan" situation.
ROC Finance Minister
The Ministry of Finance (MOF; ) is the ministry of the Republic of China (Taiwan) responsible for government revenue, taxation, treasury, government land properties, customs in Taiwan. The current minister is Su Jain-rong.
The Ministry of Finance ...
Chang Sheng-ford
Chang Sheng-ford (; born 1 September 1949) is a Taiwanese politician. He was the Minister of Finance of the Republic of China from 2012 to 2016.
ROC Finance Ministry
Cross-strait finance
In early April 2013, Chang said that representative ...
announced in April 2016 that Taiwan was not being treated with "dignity" or "respect" during the registration process and Taiwan eventually chose to leave the decision to join to the new president.
United States – No commitment
* The United States' officials have expressed concerns about whether the AIIB would have high standards of governance, and whether it would have environmental and social safeguards.
The United States is reported to have used diplomatic pressure to try and prevent key allies, such as Australia, from joining the bank, and expressed disappointment when others, such as Britain, joined.
The US' opposition to the AIIB, as well as its attempt to dissuade allies from joining was seen as a manifestation of a multifaceted containment strategy.
Japan – "Under Consideration" / No commitment
*
Masato Kitera, Tokyo's envoy in Beijing, stated previously that Japan might join the AIIB. Japanese Finance Minister
Tarō Asō
is a Japanese politician serving as the Vice President of the Liberal Democratic Party (LDP) since 2021. Asō previously served as Prime Minister of Japan from 2008 to 2009 and as Deputy Prime Minister of Japan and Minister of Finance from 2 ...
previously indicated interest in joining the AIIB, but later switched his stance.
Yoshihide Suga
is a Japanese politician who served as Prime Minister of Japan and President of the Liberal Democratic Party (LDP) from 2020 to 2021. He had served as Chief Cabinet Secretary during the second administration of Prime Minister Shinzo Abe fro ...
, Japan's Cabinet Secretary, told the public that Japan was still seeking China's full explanation of the AIIB as he stated, "As of today, Japan will not join AIIB and a clear explanation has not been received from China" and "Japan is dubious about whether (the AIIB) would be properly governed or whether it would damage other creditors". He also stated that Japan is no longer considering whether or not to join the bank. The Japanese Government Spokesman also announced that Japan would not join the AIIB. Japanese prime minister
Shinzō Abe
Shinzo Abe ( ; ja, 安倍 晋三, Hepburn: , ; 21 September 1954 – 8 July 2022) was a Japanese politician who served as Prime Minister of Japan and President of the Liberal Democratic Party (LDP) from 2006 to 2007 and again from 2012 to 20 ...
also added that Japan does not need to join the bank.
But two years later, in May 2017, Shinzō Abe said joining the AIIB, created in part to fund the initiative, could be an option if governance questions were resolved.
Toshihiro Nikai, secretary-general of the ruling party
Liberal Democratic Party, suggested joining the AIIB.
Shareholding structure
The Authorized Capital Stock of the bank is $100 billion (
US dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
s), divided into 1 million shares of $100,000 each. Twenty percent are paid-in shares (and thus have to be transferred to the bank), and 80% are callable shares.
The allocated shares are based on the size of each member country's economy (calculated using
GDP Nominal (60%) and
GDP PPP
Purchasing power parity (PPP) is the measurement of prices in different countries that uses the prices of specific goods to compare the absolute purchasing power of the countries' currencies. PPP is effectively the ratio of the price of a basket ...
(40%)) and whether they are an Asian or Non-Asian Member. The total number of shares will determine the fraction of authorized capital in the bank.
Of the prospective founding members, three states decided not to subscribe to all allocated shares: Malaysia, Portugal, and Singapore,
resulting in 98% of available shares being subscribed.
Three categories of votes exist: basic votes, share votes and Founding Member votes. The basic votes are equal for all members and constitute 12% of the total votes, while the share votes are equal to the number of shares. Each Founding Member furthermore gets 600 votes. An overview of the shares, assuming when all 57 Prospective Founding Members have become Founding Members is shown below (values in bold do not depend on the number of members):
Governance
![Stone with the name of AIIB, Jul 2019](https://upload.wikimedia.org/wikipedia/commons/6/64/Stone_with_the_name_of_AIIB%2C_Jul_2019.jpg)
The bank's governance structure is composed of the Board of Governors as the top-level and highest decision-making body.
It is composed of 1 governor for each member state of the bank and in principle meets once a year.
The board of directors, composed of 12 governors, each representing one or more member is responsible for daily operations and tasks delegated to it by the board of governors. Nine of those members are from within the Asia-Pacific region and three representing members outside the region.
Of the non-regional directors, 1 constituency is made up of EU member states having the Euro as their currency, and 1 from other European countries.
New members are considered for admission only once a year. An overview of the constituencies is shown below:
Reception
The former President of the World Bank,
Jim Yong Kim
Jim Yong Kim (; born December 8, 1959), also known as Kim Yong (/金墉), is an American physician and anthropologist who served as the 12th president of the World Bank from 2012 to 2019.
A global health leader, Kim was formerly the chair of ...
, has said that the need for infrastructure in developing countries is great so that the activities of new organizations would be welcome.
Economist
C. Fred Bergsten
C. Fred Bergsten (born April 23, 1941) is an American economist, author, think tank entrepreneur, and policy adviser. He has served as assistant for international economic affairs to Henry Kissinger within the National Security Council and as a ...
describes the AIIB as "helping meet a clear need for more infrastructure funding throughout Asia (and elsewhere)."
He concludes that the AIIB "has adhered to internationally agreed norms and best practices, and is innovating some of its own
Additionally, Bergsten writes that China's role in the AIIB "has clearly met the U.S. request for China to function as a 'responsible stakeholder' in the world economy."
Geopolitical implication in Asia-Pacific and beyond
There is no consensus in the United States about the role of the AIIB.
John Ikenberry
Gilford John Ikenberry (October 5, 1954) is a theorist of international relations and United States foreign policy, and the Albert G. Milbank Professor of Politics and International Affairs at Princeton University. He is known for his work on li ...
sees the AIIB as part of "China's emerging institutional statecraft,"
but argues that it is not clear whether the institution will tie China more deeply into the existing order or become a vehicle to challenge the order. Phillip Lipscy (
Stanford University) argues that the United States and Japan should support the AIIB to encourage China's peaceful global leadership and discourage China from pursuing coercive or military options.
On the other hand, Paola Subacchi (
Chatham House
Chatham House, also known as the Royal Institute of International Affairs, is an independent policy institute headquartered in London. Its stated mission is to provide commentary on world events and offer solutions to global challenges. It is ...
) argues that the AIIB represents a threat to US-dominated global governance.
Think-tanks such as
Chatham House
Chatham House, also known as the Royal Institute of International Affairs, is an independent policy institute headquartered in London. Its stated mission is to provide commentary on world events and offer solutions to global challenges. It is ...
, the China Studies Centre at the
University of Sydney
The University of Sydney (USYD), also known as Sydney University, or informally Sydney Uni, is a public research university located in Sydney, Australia. Founded in 1850, it is the oldest university in Australia and is one of the country's ...
and the
World Pensions Council (WPC) have argued that the successful establishment of a new supranational financial powerhouse headquartered in PRC would be facilitated by the large number of participating developed economies.
These experts observe that the establishment of the Beijing-based AIIB does not necessitate rivalry, when economic cooperation is possible,
and that the decision by the UK to participate advances its own interests even if some of its allies are opposed.
Environmental record
As the bank is still in its early years, it has no environmental record. Several organisations have however expressed their concerns over environmental policy of the proposed bank because of the high stake of China in the bank's business. Although the proposed bank declared "AIIB will learn from the best practice in the world and adopt international standards of environmental protection," Oxford scholar of economics and energy policy Yuge Ma has argued that this may be complicated in developing Asian countries.
Comparison with ADB and IBRD
Lending results
2016
During 2016, AIIB committed a total of $1.73 billion to nine projects, among which six projects are joint initiatives with other international lenders such as the World Bank and the Asian Development Bank. It had achieved its loan target of $1.2 billion for the first year.
2017
2018
2019
2020
See also
*
New Development Bank
The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa). According to the Agreement on the NDB, ...
(BRICS)/NDB BRICS
*
Asian Development Bank
The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966, which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field offic ...
*
African Development Bank
The African Development Bank Group (AfDB) or (BAD) is a multilateral development finance institution headquartered in Abidjan, Ivory Coast, since September 2014. The AfDB is a financial provider to African governments and private companies ...
*
Caribbean Development Bank
The Caribbean Development Bank (CDB) is a financial institution that helps Caribbean nations finance social and economic programs in its member countries. CDB was established by an Agreement signed on October 18, 1969, in Kingston, Jamaica, and ent ...
*
CAF - Development Bank of Latin America
*
European Investment Bank
*
Islamic Development Bank
The Islamic Development Bank ( ar, البنك الإسلامي للتنمية, abbreviated as IsDB) is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and located in Jeddah, Saudi ...
Notes
References
External links
*
Articles of Agreement of the Bank an
Report on the Articles
{{Authority control
Banks established in 2014
International development multilaterals
Multilateral development banks
Belt and Road Initiative
Supranational banks