Topics covered: Important International institutions, agencies and fora, their structure, mandate.
Asian Infrastructure Investment Bank (AIIB)
What to study?
For Prelims: AIIB- structure, voting and share of countries, NIIF.
For Mains: AIIB- significance, need for infrastructure funding.
Context: India seeks $6 billion loans from AIIB, ADB to combat COVID-19.
The central government is in talks with Asian Infrastructure Investment Bank (AIIB) and ADB to secure these loans to further the testing and infrastructure facilities in the country.
India has already secured $1 billion funding from the World Bank to better its health sector for fighting against the coronavirus pandemic according to previous reports. The World Bank has approved a fast-track $1 billion “India COVID Emergency Response and Health Systems Preparedness Project” to help India prevent, detect, and respond to the pandemic and better its public health preparedness. It was the largest ever healthcare sector support from the World Bank.
What is AIIB?
Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond.
It is headquartered in Beijing.
- It commenced operations in January 2016.
- By investing in sustainable infrastructure and other productive sectors today, it aims to connect people, services and markets that over time will impact the lives of billions and build a better future.
Various organs of AIIB:
Board of Governors: The Board of Governors 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: Non-resident Board of Directors is responsible for the direction of the Bank’s general operations, exercising all powers delegated to it by the Board of Governors. This includes approving the Bank’s strategy, annual plan and budget; establishing policies; taking decisions concerning Bank operations; and supervising management and operation of the Bank and establishing an oversight mechanism.
International Advisory Panel: The Bank has established an International Advisory Panel (IAP) to support the President and Senior Management on the Bank’s strategies and policies as well as on general operational issues. The Panel meets in tandem with the Bank’s Annual Meeting, or as requested by the President. The President selects and appoints members of the IAP to two-year terms. Panelists receive a small honorarium and do not receive a salary. The Bank pays the costs associated with Panel meetings.
Significance of AIIB:
The United Nations has addressed the launch of AIIB as having potential for “scaling up financing for sustainable development” for the concern of global economic governance. The capital of the bank is $100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank.
- AIIB vs ADB vs WB.
- Members of AIIB.
- Top shareholders.
- Voting powers.
- AIIB supported projects in India.
Write a note on the Asian Infrastructure Investment Bank (AIIB).
Sources: the Hindu.