The Asian Infrastructure Investment Bank (AIIB) is an international financial institution established in 2016.
Started in 2016 with 57 founding members, the AIIB now has more than 100 members
It is headquartered in Beijing, China.
The AIIB aims to support infrastructure development and promote economic growth in the Asia-Pacific region.
Role of AIIB
The primary role of AIIB is to provide financing for infrastructure projects in its member countries.
AIIB emphasizes sustainable development by integrating environmental and social considerations into its investment decisions.
AIIB collaborates with other development institutions, governments, and private sector entities to co-finance projects and leverage additional resources.
AIIB provides technical assistance and knowledge sharing to help member countries build capacity and develop sustainable infrastructure projects.
AIIB engages in policy dialogue with governments and stakeholders to promote best practices in infrastructure development and improve governance.
Voting Share
AIIB's voting power is determined by the number of shares held by its member countries.
China holds the most voting power with 26.58%
China having contributed $27 billion
India is the bank’s second largest shareholder with a 7.6% voting power, and committed $8 billion
After China and India, Russia holds the bank’s third largest voting power (5.97%), followed by Germany (4.15%), South Korea (3.49%), Australia (3.45%), France (3.17%), Indonesia (3.16%) and the U.K. (2.89%)
Why Canada halted the involvement in AIIB?
Canada's decision to halt its involvement in the AIIB came after the sudden resignation of a Canadian executive who raised concerns about the bank's governance.
The Canadian executive stated that the AIIB was being "dominated" by members of China's ruling Communist Party, which raised questions about the bank's independence and decision-making processes.
Chinese officials strongly rejected the claims made by the Canadian executive, dismissing them as "outright lies" and "sensational hype."
China holds the highest voting power in the AIIB with 26.58%, followed by India with 7.6%.
The AIIB has been described as a potential rival to institutions like the World Bank and the Asian Development Bank (ADB), but its capacities and capabilities are often overstated.
Many of the bank's early projects were co-funded with the World Bank or the ADB.
India and AIIB
The establishment of the AIIB was seen as a diplomatic achievement for China, as it attracted countries like India that were wary of China's Belt and Road Initiative (BRI).
India joined the AIIB while staying away from the Belt and Road Initiative (BRI), as it viewed the two initiatives as separate.
India saw the AIIB as a transparent, multilateral institution, unlike the BRI, which raised sovereignty concerns due to its inclusion of the China Pakistan Economic Corridor (CPEC).
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