GS Paper 2:
Topics Covered: Important International institutions, agencies and fora, their structure, mandate.
AIIB has said that it would look to fund both social as well as climate-resilient infrastructure in India in the coming years.
- Meanwhile, it has also asked India to strike a balance between ramping up physical infrastructure and the social infrastructure such as healthcare systems.
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.
The Parties (57 founding members) to agreement comprise the Membership of the Bank.
- It is headquartered in Beijing.
- The bank started operation after the agreement entered into force on 25 December 2015, after ratifications were received from 10 member states holding a total number of 50% of the initial subscriptions of the Authorized Capital Stock.
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.
- There are more than 100 members now.
- China is the largest shareholder with 26.61 % voting shares in the bank followed by India (7.6%), Russia (6.01%) and Germany (4.2 %).
- The regional members hold 75% of the total voting power in the Bank.
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.
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.
- 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.