GS Paper 2:
Topics Covered: Important International institutions, agencies and fora, their structure, mandate.
Former Reserve Bank of India (RBI) governor Urjit Patel has been appointed vice-president of the Beijing-based Asian Infrastructure Investment Bank (AIIB).
- Mr.Patel will serve a three-year term as one of the multilateral development bank’s five vice-presidents.
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.
Did you know that the U.S. and Japan are not among 104 members of AIIB?
- 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.