Tuesday, April 14, 2015

BRICSPOST: China-led Bank to work for the Region

As the new China led Asian Infrastructure Investment Bank (AIIB) moves forward and gains new members, China wants to make it clear that the new bank is not a replacement for the IMF and the World Bank. However, it is also obvious from their comments that they think the IMF and World Bank need to change to give more influence to member nations based on their contribution to global GDP. Below are some quotes from this BRICSPOST article about the new bank.

"China and all the member countries of the Asian Infrastructure Investment Bank (AIIB) will be committed to building a bank which would be lean, clean and green, said Jin Liqun, interim chief of the Bank.
“Lean is cost effective; clean, this bank will have zero- tolerance on corruption; green means it’s going to promote the economy,” he said.
Jin is the secretary general of the interim multilateral secretariat of the AIIB.
The AIIB is a China-initiated international financial institution aimed at supporting infrastructure projects in Asia. Beijing will host the headquarters of the Bank.
The bank has seen more than 40 prospective founding members by Saturday, with Spain, South Korea and Austria as the most recent prospective founding members. The growing list of its European allies joining China’s alternative to the IMF and the World Bank has outraged Washington."
. . . . . .
"The AIIB’s interim chief on Saturday said the Bank is not a political alliance, contrary to popular perception.
China itself benefits enormously from the contribution by World Bank and the ADB. Now it’s time for China to do something more for this region. And the difference between AIIB and World Bank and ADB is that this bank focuses exclusively on infrastructure development,” said Jin."
. . . . . 
"Founding members have agreed that GDP will be the basic parameter in determining share allocation among member countries in the Bank."

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