<p>The Asian Infrastructure Investment Bank (AIIB) is in the news again after Canada's decision to freeze ties with it. Canadian Finance Minister Chrystia Freeland announced the country's decision on Wednesday (June 14). AIIB global communications director, who is a Canadian, has resigned from his position. Bob Pickard, the official, alleged that AIIB has a marked Chinese influence. Freeland has said that there will be a probe into the allegations and that she did not rule out any outcome of the said investigation.</p>

<p>All this and more has kept AIIB in the news over the years.</p>

<h2><strong>Origins of AIIB</strong></h2>

<p>Chinese President Xi Jinping voiced the concept of a China-led multilateral financial institution in 2013 at an Asia-Pacific Economic Cooperation Summit 2013 in Indonesia. At the time, Xi's idea was widely held to be a move to counter Western dominance in lending funds. The World Bank and the International Monetary Fund are largely viewed as pro-Western institutions.</p>

<p><strong>Watch | Canada pulls plug on AIIB, probes Chinese influence | World Business Watch</strong></p>

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<p>Xi Jinping promoted the idea of the China-led bank as a way to provide financial help to building ports, dams and other important infrastructure in the region.</p>

<p>"In China, we have a folk saying," Xi said at a ceremony in Beijing in 2014 to announce the first 21 nations that had signed up to the concept.</p>

<p>"If you would like to get rich, build roads first, and I believe that is a very vivid description of the importance of infrastructure to economic development."</p>

<h2>How many projects has AIIB funded till now?</h2>

<p>AIIB began operations in January 2016.&nbsp;</p>

<p>According to AIIB's website, it has financed 221 projects till now. This help is worth $42 billion. As of November 2022, India is by far the largest borrower.</p>

<h2><strong>Membership of AIIB</strong></h2>

<p>The AIIB began with 57 founding members. The idea of a China-led bank would make one think that Western countries would be averse to being a member of AIIB. But several Western countries are members. The US was caught off-guard when the UK and other European countries sought membership, says US Congressional Research Service (CRS). AIIB started with 57 founding members.</p>

<p>In the summer of 2016, Canada announced its decision to apply for membership. This was seen as a major gain for Chinese efforts.</p>

<p>The AIIB has 106 approved members now. In comparison, the IMF and World Bank have about 190 member countries each.</p>

<p>Sixteen of the G20 members are AIIB members or prospective ones -- only the United States, Japan, Mexico and the European Union are not.&nbsp;</p>

<h2><strong>Who are the shareholders of AIIB?</strong></h2>

<p>China is the main shareholder of AIIB. It commands 27 per cent voting power. This is considerably greater than India, the second-largest shareholder, which holds eight per cent. According to CRS, this is the largest gap between the top two shareholders at any existing multilateral development bank.</p>

<p>Russia is the third largest, followed by Germany, South Korea, Australia, France, Indonesia, the United Kingdom and Turkey.&nbsp;</p>

<h2><strong>What are the concerns about AIIB?</strong></h2>

<p>The United States and other critics often express the worry that &nbsp;AIIB would set much lower standards for projects. This would then, they say, undermine principles of economic, social and environmental sustainability which other lenders adhere to.</p>

<p>There were also fears that the bank would mainly be used to further China's own economic and political aims. AIIB has always maintained that such fears or claims are misplaced.</p>

<p>"China's wish isn't to create a new instrument of the Chinese state, it is to demonstrate its ability to promote a truly international institution based in China," AIIB's then-vice president Thierry de Longuemar told AFP in 2017.&nbsp;</p>

<p>The World Bank and AIIB signed off a framework for cooperation in common areas of interest in 2017. This, to some extent, allayed the fears that the two world bodies would be competitors of each other.</p>

<p><strong>Also Read | <a href="https://www.wionews.com/business-economy/canada-suspends-ties-with-chinese-led-aiib-over-allegations-of-communist-domination-604695">Canada suspends ties with Chinese-led AIIB over allegations of Communist domination</a></strong></p>

<p>AIIB has similar agreements with the Asian Development Bank and the European Bank for Reconstruction and Development, as well as cooperating with a range of other international lenders.</p>

<p>The bank has maintained AAA ratings from major rating agencies and holds Permanent Observer status at the United Nations.</p>

<h2><strong>What is the leadership structure at AIIB?</strong></h2>

<p>Since the start, the bank has been headed by Jin Liqun. He is a former vice minister of China's finance ministry.</p>

<p>On its website, AIIB says that "all powers of the Bank are vested in our Board of Governors, which is the highest decision-making body".</p>

<p>Member countries appoint financial officials to the board.</p>

<p>However, Bob Pickard, former global communications director, has claimed that the board of directors is a "window dressing" and that there is a "parallel system" inside the bank.</p>

<h2><strong>India and AIIB</strong></h2>

<p>The AIIB has funded 28 projects in India. These projects are worth $6.7 billion in total. The projects are in various sectors like energy, transport, water and others. The bank has reportedly approved $500 million for Covid-19 Emergency Response Fund.</p>

<p>India and the AIIB signed a $455 million loan agreement to finance Andhra Pradesh Rural Roads Project.</p>

<p>You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form"><strong>here</strong></a>.</p>

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The Asian Infrastructure Investment Bank (AIIB) is in the news again after Canada's decision to freeze ties with it. Canadian Finance Minister Chrystia Freeland announced the country's decision on Wednesday (June 14).

The Asian Infrastructure Investment Bank (AIIB) is in the news again after Canada's decision to freeze ties with it. Canadian Finance Minister Chrystia Freeland announced the country's decision on Wednesday (June 14). AIIB global communications director, who is a Canadian, has resigned from his position. Bob Pickard, the official, alleged that AIIB has a marked Chinese influence. Freeland has said that there will be a probe into the allegations and that she did not rule out any outcome of the said investigation. All this and more has kept AIIB in the news over the years. Origins of AIIB Chinese President Xi Jinping voiced the concept of a China-led multilateral financial institution in 2013 at an Asia-Pacific Economic Cooperation Summit 2013 in Indonesia. At the time, Xi's idea was widely held to be a move to counter Western dominance in lending funds. The World Bank and the International Monetary Fund are largely viewed as pro-Western institutions. Watch | Canada pulls plug on AIIB, probes Chinese influence | World Business Watch × Xi Jinping promoted the idea of the China-led bank as a way to provide financial help to building ports, dams and other important infrastructure in the region. "In China, we have a folk saying," Xi said at a ceremony in Beijing in 2014 to announce the first 21 nations that had signed up to the concept. "If you would like to get rich, build roads first, and I believe that is a very vivid description of the importance of infrastructure to economic development." How many projects has AIIB funded till now? AIIB began operations in January 2016. According to AIIB's website, it has financed 221 projects till now. This help is worth $42 billion. As of November 2022, India is by far the largest borrower. Membership of AIIB The AIIB began with 57 founding members. The idea of a China-led bank would make one think that Western countries would be averse to being a member of AIIB. But several Western countries are members. The US was caught off-guard when the UK and other European countries sought membership, says US Congressional Research Service (CRS). AIIB started with 57 founding members. In the summer of 2016, Canada announced its decision to apply for membership. This was seen as a major gain for Chinese efforts. The AIIB has 106 approved members now. In comparison, the IMF and World Bank have about 190 member countries each. Sixteen of the G20 members are AIIB members or prospective ones -- only the United States, Japan, Mexico and the European Union are not. Who are the shareholders of AIIB? China is the main shareholder of AIIB. It commands 27 per cent voting power. This is considerably greater than India, the second-largest shareholder, which holds eight per cent. According to CRS, this is the largest gap between the top two shareholders at any existing multilateral development bank. Russia is the third largest, followed by Germany, South Korea, Australia, France, Indonesia, the United Kingdom and Turkey. What are the concerns about AIIB? The United States and other critics often express the worry that AIIB would set much lower standards for projects. This would then, they say, undermine principles of economic, social and environmental sustainability which other lenders adhere to. There were also fears that the bank would mainly be used to further China's own economic and political aims. AIIB has always maintained that such fears or claims are misplaced. "China's wish isn't to create a new instrument of the Chinese state, it is to demonstrate its ability to promote a truly international institution based in China," AIIB's then-vice president Thierry de Longuemar told AFP in 2017. The World Bank and AIIB signed off a framework for cooperation in common areas of interest in 2017. This, to some extent, allayed the fears that the two world bodies would be competitors of each other. Also Read | Canada suspends ties with Chinese-led AIIB over allegations of Communist domination AIIB has similar agreements with the Asian Development Bank and the European Bank for Reconstruction and Development, as well as cooperating with a range of other international lenders. The bank has maintained AAA ratings from major rating agencies and holds Permanent Observer status at the United Nations. What is the leadership structure at AIIB? Since the start, the bank has been headed by Jin Liqun. He is a former vice minister of China's finance ministry. On its website, AIIB says that "all powers of the Bank are vested in our Board of Governors, which is the highest decision-making body". Member countries appoint financial officials to the board. However, Bob Pickard, former global communications director, has claimed that the board of directors is a "window dressing" and that there is a "parallel system" inside the bank. India and AIIB The AIIB has funded 28 projects in India. These projects are worth $6.7 billion in total. The projects are in various sectors like energy, transport, water and others. The bank has reportedly approved $500 million for Covid-19 Emergency Response Fund. India and the AIIB signed a $455 million loan agreement to finance Andhra Pradesh Rural Roads Project. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Explained | What exactly is the Asian Infrastructure Investment Bank?

In a significant development, Canada has decided to suspend its involvement with the Asian infrastructure investment bank, also known as the AIIB. Finance Minister Chrystia Freeland made the announcement today, declaring an immediate halt to all government-led activities at the bank. This move comes as the Canadian government launches an investigation into alleged substantial interference from the Chinese government within the institution.

Canada pulls plug on AIIB, probes Chinese influence | World Business Watch

<p>Union Minister of Finance Nirmala Sitharaman on Tuesday praised the efforts of Asian Infrastructure Investment Bank (AIIB) for fast-tracking financial assistance of about USD 10 billion to its member countries including India to combat COVID-19 pandemic.</p>

<p>Attending the fifth annual meeting of the Board of Governors of AIIB through video conference in the national capital, Sitharaman mentioned about Prime Minister Narendra Modi's initiative of creating a COVID-19 emergency fund for the South Asian Association for Regional Cooperation (SAARC) nations and India's efforts in supplying critical medical health kits to tackle COVID-19, and now supporting global efforts of coronavirus vaccine trials.</p>

<p><strong>Also read:&nbsp;<a href="https://www.wionews.com/india-news/pm-narendra-modi-launches-state-of-the-art-coronavirus-facility-316270" hreflang="en">PM Narendra Modi launches 'state of the art' coronavirus facility</a></strong></p>

<p>Besides, the Finance Minister highlighted India's participation in the "G20 Debt Service Suspension Initiative". She also outlined various measures taken by the Centre to respond to the COVID-19, including the USD 23 Billion Pradhan Mantri Garib Kalyan Yojana (PMGKP) and USD 295 Billion Atma Nirbhar Bharat Package (ANBP), which aim at protecting all sectors and sections of the economy.</p>

<p><strong>Also read:&nbsp;<a href="https://www.wionews.com/india-news/spike-of-47704-cases-654-fatalities-push-indias-tally-to-1483156-316438" hreflang="en">Spike of 47,704 cases, 654 fatalities push India's tally to 14,83,156</a></strong></p>

<p>The Reserve Bank of India (RBI) eased the monetary policy especially reduced reserve requirements and introduced liquidity in the economy to the extent of almost 3.9 per cent of GDP, she added.</p>

<p>Mentioning the steps taken to give a boost to the infrastructure development, she said: "India has launched the National Infrastructure Pipeline (NIP) 2020-2025 with an estimated expenditure of USD 1.4 trillion that has created a plethora of fresh investment opportunities for AIIB`s partnerships."</p>

<p>Furthermore, she stressed on some of the expectations from the bank, including the introduction of new financing instruments, mobilising private sector finance, providing financing for social infrastructure to achieve the Sustainable Development Goals (SDGs) 2030, and integrating the development of climate-resilient and sustainable energy access infrastructure into the recovery response to the COVID-19 crisis.&nbsp;</p>


Union Minister of Finance Nirmala Sitharaman on Tuesday praised the efforts of Asian Infrastructure Investment Bank (AIIB) for fast-tracking financial assistance of about USD 10 billion to its member countries including India to combat COVID-19 pandemic.

Union Minister of Finance Nirmala Sitharaman on Tuesday praised the efforts of Asian Infrastructure Investment Bank (AIIB) for fast-tracking financial assistance of about USD 10 billion to its member countries including India to combat COVID-19 pandemic. Attending the fifth annual meeting of the Board of Governors of AIIB through video conference in the national capital, Sitharaman mentioned about Prime Minister Narendra Modi's initiative of creating a COVID-19 emergency fund for the South Asian Association for Regional Cooperation (SAARC) nations and India's efforts in supplying critical medical health kits to tackle COVID-19, and now supporting global efforts of coronavirus vaccine trials. Also read: PM Narendra Modi launches 'state of the art' coronavirus facility Besides, the Finance Minister highlighted India's participation in the "G20 Debt Service Suspension Initiative". She also outlined various measures taken by the Centre to respond to the COVID-19, including the USD 23 Billion Pradhan Mantri Garib Kalyan Yojana (PMGKP) and USD 295 Billion Atma Nirbhar Bharat Package (ANBP), which aim at protecting all sectors and sections of the economy. Also read: Spike of 47,704 cases, 654 fatalities push India's tally to 14,83,156 The Reserve Bank of India (RBI) eased the monetary policy especially reduced reserve requirements and introduced liquidity in the economy to the extent of almost 3.9 per cent of GDP, she added. Mentioning the steps taken to give a boost to the infrastructure development, she said: "India has launched the National Infrastructure Pipeline (NIP) 2020-2025 with an estimated expenditure of USD 1.4 trillion that has created a plethora of fresh investment opportunities for AIIB`s partnerships." Furthermore, she stressed on some of the expectations from the bank, including the introduction of new financing instruments, mobilising private sector finance, providing financing for social infrastructure to achieve the Sustainable Development Goals (SDGs) 2030, and integrating the development of climate-resilient and sustainable energy access infrastructure into the recovery response to the COVID-19 crisis.

Sitharaman praises AIIB for fast-tracking financial aid to combat COVID-19

The Asian Infrastructure Investment Bank (AIIB) stressed its independence from China at its first annual meeting today, saying it plans to cooperate with other development banks and add new members, including Hong Kong.&nbsp;<br />
<br />
Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region.&nbsp;<br />
<br />
The AIIB, which intends to invest $1.2 billion this year, said it is aiming to meet international standards of governance, although some members say there is still work to be done.&nbsp;<br />
<br />
And in response to concern that China, its biggest backer, will dominate, the AIIB said it answers to all its shareholders.<br />
<br />
&quot;China as much as other shareholders has been very supportive of the governance standards that we&#39;re setting and of the transparency around the bank&#39;s operations,&quot; AIIB vice president Danny Alexander said.<br />
<br />
AIIB&#39;s board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for Reconstruction and Development.&nbsp;<br />
<br />
The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed.<br />
<br />
&quot;We are working on a number of additional projects and look forward to bringing them to our Board for its approval later this year,&quot; said AIIB President Jin Liqun.<br />
<br />
It is crucial for the AIIB to comply with multilateral agency procedures and rules, Chinese Vice-Premier Zhang Gaoli, said at the opening ceremony for AIIB&#39;s annual meeting.&nbsp;<br />
<br />
&quot;AIIB should learn from the successful experience of other multilateral agencies and forge close partnership with the World Bank, Asian Development Bank and other institutions,&quot; he said, a commitment which was echoed by the AIIB&#39;s Jin.<br />
<br />
The bank, with only 38 full-time staff, needs organization and procedures to be fleshed out, say members.&nbsp;<br />
<br />
&quot;The roles of the management and the Board should be more clearly defined. Over the past six months, the basic framework for operation took shape, but there is still much to be done,&quot; Korean finance minister and AIIB governor Ilho Yoo said, adding that it needs to develop its environmental and social framework.&nbsp;<br />
<br />
The bank&#39;s lean operation and flexibility as a new organization was a positive for the European Bank for Reconstruction and Development (EBRD), which is partnering on one of AIIB`s first deals.&nbsp;<br />
<br />
&quot;What impresses me is the efficiency they go about things. AIIB is a natural partner because they are willing and able to take risk, such as going into private public partnership structures,&quot; said Thomas Maier, the EBRD&#39;s managing director for infrastructure.<br />
<br />
Zhang also said that China will contribute $50 million to a new fund set up by the AIIB to support member countries with project preparations.&nbsp;<br />
<br />
The AIIB is looking to expand its numbers this year and will take applications for new members through the end of September.<br />
<br />
Hong Kong, despite being a special administrative region of China, has applied for membership, and Jin said he is confident Hong Kong will soon be a full member of the bank.&nbsp;<br />
<br />
Beijing has been looking for ways to support Hong Kong, which has been convulsed by political turmoil.&nbsp;<br />
<br />
(Reuters)

China, the biggest funder, addresses concern that it'll dominate the bank by insisting it's accountable to all shareholders

The Asian Infrastructure Investment Bank (AIIB) stressed its independence from China at its first annual meeting today, saying it plans to cooperate with other development banks and add new members, including Hong Kong. Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. The AIIB, which intends to invest $1.2 billion this year, said it is aiming to meet international standards of governance, although some members say there is still work to be done. And in response to concern that China, its biggest backer, will dominate, the AIIB said it answers to all its shareholders. "China as much as other shareholders has been very supportive of the governance standards that we're setting and of the transparency around the bank's operations," AIIB vice president Danny Alexander said. AIIB's board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for Reconstruction and Development. The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. "We are working on a number of additional projects and look forward to bringing them to our Board for its approval later this year," said AIIB President Jin Liqun. It is crucial for the AIIB to comply with multilateral agency procedures and rules, Chinese Vice-Premier Zhang Gaoli, said at the opening ceremony for AIIB's annual meeting. "AIIB should learn from the successful experience of other multilateral agencies and forge close partnership with the World Bank, Asian Development Bank and other institutions," he said, a commitment which was echoed by the AIIB's Jin. The bank, with only 38 full-time staff, needs organization and procedures to be fleshed out, say members. "The roles of the management and the Board should be more clearly defined. Over the past six months, the basic framework for operation took shape, but there is still much to be done," Korean finance minister and AIIB governor Ilho Yoo said, adding that it needs to develop its environmental and social framework. The bank's lean operation and flexibility as a new organization was a positive for the European Bank for Reconstruction and Development (EBRD), which is partnering on one of AIIB`s first deals. "What impresses me is the efficiency they go about things. AIIB is a natural partner because they are willing and able to take risk, such as going into private public partnership structures," said Thomas Maier, the EBRD's managing director for infrastructure. Zhang also said that China will contribute $50 million to a new fund set up by the AIIB to support member countries with project preparations. The AIIB is looking to expand its numbers this year and will take applications for new members through the end of September. Hong Kong, despite being a special administrative region of China, has applied for membership, and Jin said he is confident Hong Kong will soon be a full member of the bank. Beijing has been looking for ways to support Hong Kong, which has been convulsed by political turmoil. (Reuters)

China-backed AIIB seeks cooperation and new members, beyond 57 founding countries