Asian Infrastructure Investment Bank (AIIB)
Asian Infrastructure Investment Bank (AIIB)
- The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank that provides financing for infrastructure projects in Asia.
- Unlike most other multilateral development banks set up by advanced economies, AIIB is the first major multilateral development bank where principal contributors are the borrowing members.
- Chinese President Xi Jinping first mentioned the concept of a China-led multilateral financial institution in 2013 at an Asia-Pacific Economic Cooperation (APEC) Summit in Indonesia.
- The main objective was to provide developing countries with an alternative to Western lending institutions, like the World Bank and the International Monetary Fund.
- It was established in January 2016.
- Headquarters: Beijing, China.
- Objective: To finance infrastructure projects in the Asia Pacific region.
- Member countries: 109 Countries
- India is a founding member.
- Membership in AIIB shall be open to members of the World Bank or the Asian Development Bank.
- 16 of the G20 members are AIIB members or prospective ones. Only the United States, Japan, Mexico and the European Union are not its members.
AIIB Finances & Shareholding
- It has a total authorised capital of USD$100 billion.
- China is the largest contributor to the Bank, contributing USD 50 billion, half of the initial subscribed capital. India is the second-largest shareholder, contributing USD 8.4 billion.
- China is the biggest shareholder (27% voting shares). India is the 2nd largest shareholder (8%) followed by Russia and Germany.
Organisational Structure
- AIIB shares its overall governance structure with many other MDBs, with a common hierarchy of three governance levels: Board of Governors, Board of Directors and President.
Board of Governors
- It is the highest decision-making body.
- It consists of one Governor and one Alternate Governor appointed by each member country.
- Governors and Alternate Governors serve at the pleasure of the appointing member.
Board of Directors
- It exercises all powers delegated to it by the Board of Governors.
- It is responsible for the direction and management of the Bank such as the Bank’s strategy, annual plan and budget and establishing policies and oversight procedures.
President
- The President, elected by the Board of Governors, conducts the current business of the Bank, under the direction of the Board of Directors.
India and AIIB
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