China recently hosted the signing in ceremony of the Asian Infrastructure Investment Bank to
bride the gap between infrastructure finance and development. The signing in
ceremony took place in Beijing with 50 countries becomes its founding members.
This multilateral finance institution is different from other world financial institutions as AIIB will only fund the financial assistance for infrastructure development in Asian countries .This step by china is also seen as to challenge the hegemony of IMF ,World Bank and Asian Development Bank which are dominated by America ,Europeans and japan.
This multilateral finance institution is different from other world financial institutions as AIIB will only fund the financial assistance for infrastructure development in Asian countries .This step by china is also seen as to challenge the hegemony of IMF ,World Bank and Asian Development Bank which are dominated by America ,Europeans and japan.
As of now 50 countries
has signed the Article of Agreement as
founding members of Asian Infrastructure Investment Bank including Australia,
Austria, Azerbaijan, Bangladesh, Brazil, Brunei Darussalam, Cambodia, China,
Egypt, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Iran, Israel, Italy, Jordan, Kazakhstan,
Republic of Korea, Kyrgyz Republic, Lao PDR, Luxembourg, Maldives, Malta,
Mongolia, Myanmar, Nepal, Netherlands, New Zealand, Norway, Oman, Pakistan,
Portugal, Qatar, Russia, Saudi Arabia, Singapore, Spain, Sri Lanka, Sweden,
Switzerland, Tajikistan, Turkey, the United Arab Emirates, the United Kingdom,
Uzbekistan, and Vietnam .
America ,Japan opted
to stay out ,not to join AIIB.
The AIIB, main focus on
:
Development of
infrastructure and other productive sectors in Asia, including energy and
power, transportation and telecommunications, rural infrastructure and
agriculture development, water supply and sanitation, environmental protection
and urban development etc.
The AIIB head quartered
will be located at Beijing, Mr. Jin Liqun appointed as president designate of
the AIIB and have initial authorized capital stock of $100 billion. The voting
rights will be based on country’s economy not on contribution. China will be
26.06 percent of voting rights followed by India which will have 7.5percent and
Russia with 5.92 percent.
With the establishment
of AIIB gives a big boost in infrastructure development of Asian countries as
they can now avail loans from their Asian
counterpart as against to World Bank or IMF which provide loans with stringent conditions.
