Finance Minister Lou Jiwei (center) interacts with foreign guests in Beijing on Oct 24 after the signing ceremony on establishing the Asian Infrastructure Investment Bank.[Photo by Feng Yongbin/China Daily]
Minister of Finance Lou Jiwei previously explained the concept of the Asian Infrastructure Investment Bank:
What prompted China to put forward the idea of the bank in 2013?
The Asian economy has witnessed a range of challenges in recent years. Infrastructure facilities in emerging markets and developing countries are less developed than in some other countries, and a huge demand for financing remains.
The existing multilateral development banks are limited in the quantity of funding, and some regional countries enjoy high deposit rates, so it is necessary and feasible for Asia to discuss building a new regional investment and financing platform.
China made the proposal in order to achieve a win-win situation, and it is an important step for China to shoulder more international duties and boost regional unity and cooperation in Asia.
What is the bank’s nature and mission?
The AIIB will be a multilateral development organization for Asia established on intergovernmental lines, and it will function in accordance with the models and principles of other multilateral development banks.
It aims to boost economic development and regional economic cooperation by supporting investment in infrastructure and other projects in Asian countries.
The new bank will become a professional and highly efficient investment and financing platform for infrastructure facilities, and will meet the demand for further development.
Is the bank open to all the countries in Asia?
China suggests that the AIIB follows an open regional approach, and welcomes interested countries to participate as founding members.
In principle, the bank will be open first to countries within the region, and then to those outside the region.
What are the differences between the AIIB, the World Bank and the Asian Development Bank?
The AIIB will complement and cooperate with the World Bank and the Asian Development Bank, as both focus on poverty alleviation. Infrastructure projects also help alleviate poverty.
Funding from the Asian Development Bank and the World Bank is far from being enough to satisfy the appetite for new infrastructure. The AIIB will provide new financing channels for developing nations, especially low-in-come ones.