This article focuses on the History, Role, Objective and Function of AIIB (Asian Infrastructure Investment Bank). Here, you will also know about the role of India in AIIB and Voting rights of AIIB.
Purpose, Function, and Membership of AIIB – Asian Infrastructure Investment Bank
Table of Contents
What is the full form of AIIB?
The full form of AIIB is Asian Infrastructure Investment Bank.
History of AIIB: Asian Infrastructure Investment Bank
AIIB History: Asian Infrastructure Investment Bank is an international financial institution Which aims to support the construction of infrastructure in the Asia-Pacific region. Bank was proposed by the Chinese government.
Established: January 16, 2016
Headquarters: Beijing, Chin
AIIB Members: 86 Members (as on 14th Oct 2018)
Chairman: Click here
official website: https://www.aiib.org
The purpose of AIIB: Objective of the Asian Infrastructure Investment Bank
Objective & ambition of AIIB Bank: The main objective of AIIB bank is crediting in Asia and Oceania region. The aim of this Development Bank is to fund infrastructure projects in the Asian Pacific region, which will provide assistance to major projects related to infrastructure in Asian countries. Asia needs to build basic infrastructure in the field of traffic, energy, and telecommunication. AIIB will cooperate with other multilateral institutions, including the World Bank and the Asian Development Bank, and will give full support to the construction and development of this areas. The objective of establishing this bank is to strengthen the connectivity in the region so that economic and social development can be increased.
Its goal is to improve economic and social development in Asia region by investing in high quality, financially viable and environment-friendly infrastructure projects.
Role of AIIB
The Asian Infrastructure Investment Bank (AIIB) and China’s Belt and Road Initiative (BRI) at first glance appear to be two hands connected to the same body.
- Mandate, membership, governance, finance, and institutional set-up are explained by the Asian infrastructure investment bank’s.
- Asian infrastructure investment bank provides an analysis of similarities and differences between the AIIB (Asian Infrastructure Investment Bank) and other regional development banks and the World Bank.
- The Asian Infrastructure Investment Bank’s former council, Lichtenstein has given his unique expertise.
- In the last 2 years, AIIB’s (Asian Infrastructure Investment Bank) Coverage of operation of Financial Operations.
Function of AIIB
Provide finance for the infrastructure projects of developing countries in the Asian country.
Role of India in AIIB:
- India will be the second largest members of AIIB.
- Apart from this, there are good relations with our Asian countries which are in AIIB but are not China’s “best friends”.
- Therefore collectively, we have sufficient voting power in the board to face any action affecting Indian interests. purpose function and membership of AIIB
AIIB Member countries:
Afghanistan, Argentina, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Bolivia, Brazil, Brunei, Cambodia, Canada, Chile, China, Cyprus, Denmark, Ecuador, Egypt, Ethiopia, Fiji, Finland, France, Georgia, Germany, HongKong, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Jordan, Kazakhstan, SouthKorea, Kuwait, Kyrgyzstan, Laos, Luxembourg, Madagascar, Malaysia, Maldives, Malta, Mongolia, Myanmar, Nepal, Netherlands, NewZealand, Norway, Oman, Pakistan, Peru, Philippines, Poland, Portugal, Qatar, Russia, Samoa, Saudi Arabia, Singapore, South-Africa, Spain, SriLanka, Sudan, Sweden, Switzerland, Tajikistan, Thailand, Timor-Leste, Turkey, UnitedArabEmirates, UnitedKingdom, Uzbekistan, Vanuatu, Venezuela, Vietnam
Voting Rights of AIIB
- The authorized capital is 100 billion USD.
- China is ready to pay 50% of 100 billion.
- But China said that they do not want to be a ‘single majority shareholder’ and in the future, when they join new members, they gradually reduce Chinese shareholders.
- Shareholding should be decided on the adjusted gross domestic product for purchasing power parity (PPP).
- Accordingly, China is the largest and India is the second largest shareholder.
- Areas of investment: Energy, Education, Health, Transportation etc.
- Large shareholders of the bank: purpose function and membership of AIIB
|Country Name||Voting Percentage|
AIIB (Asian Infrastructure Investment Bank) meeting:
- The first AIIB annual meeting of the Governors Board was held in Beijing, China in 2016.
- The second annual meeting of the governor’s board was held in Jeju, South Korea in 2017.
- Governors Board of Asian Infrastructure Investment Bank (AIIB) announced that the annual meeting was being held in Mumbai, India in June 2018.
- Moving out of Asia first time, the Asian Infrastructure Investment Bank (AIIB)’s Fourth Annual Meeting will be held in Luxembourg in July 2019. Luxemburg provides a leading international financial center and investment between Europe and Asia as well as the founding member of AIIB. purpose function and membership of AIIB