AIIB driven by projects and not politics: Alexander
The Asian Infrastructure Investment Bank
(AIIB), conceived and hosted by China, is essentially a multilateral
development bank that is driven solely by the “quality of projects and not politics”,
according to its Vice-President, Danny Alexander.
Background:
This clarification came against the backdrop
of India’s strategic concerns regarding the China-Pakistan Economic Corridor
(CPEC) that covers areas including Pakistan-occupied-Kashmir.
- CPEC is the so-called ‘flagship’ project of China’s
One-Belt-One-Road (OBOR) initiative, aimed at developing infrastructure in
more than 60 countries. OBOR is among those that will get AIIB funding.
About AIIB:
The AIIB was established as a new
multilateral financial institution aimed at providing “financial support for
infrastructure development and regional connectivity in Asia.”
- It was founded in October, 2014, and will have its
headquarters in Beijing.
- Its goals are also to boost economic development in
the region, create wealth, prove infrastructure, and promote regional
cooperation and partnership.
- The value of AIIB’s authorized capital amounts to
$100 billion, with almost $30 billion invested by China.
- The bank expects to lend $10 billion to $15 billion
a year for the first five years of its operations, beginning in the second
quarter of 2016.
- India is an influential member of the AIIB as it has the second-largest voting share and percentage of shares (next only to China) in the multilateral institution that has 57 member countries.
