The new Asian Infrastructure Investment Bank is attracting the world’s attention. In its efforts to gain more economic clout, China has attracted 57 countries to join in establishing the AIIB for development projects.
Global membership was welcomed by Beijing. But Washington criticized certain aspects of the project and distanced itself from participating, Xinhua reported.
Major economic powers were quick to join the project, which raised questions about the effectiveness of the International Monetary Fund. At the same time, some believe that Beijing may have the ability to change the pole of global economic decisions.
Fifty seven countries will work together to set up rules and regulations of the AIIB Bank which is based in Beijing. They will do so with a budget of $50 billion.
The main goal of this project is to provide financial support for the construction of roads, railways, airports and other infrastructure projects in Asia. The founding members can formulate management rules, set the framework and make decisions. Associate members will have the right to vote on the bank’s decisions.
Seven Arab nations have joined the bank. Egypt as a founder member and the UAE, Saudi Arabia, Qatar, Jordan, Oman and Kuwait as associate members.
Seventeen countries inside the European Union rushed to apply for the status as founder member, most notably France, Germany, the UK, Italy and Portugal.
There have been reports claiming the AIIB could become a rival to the World Bank and the ADB – the Asian Development Bank which is dominated by the US and Japan.
“The world expects these countries who have decided to join, expect that the institution will be governed well, will be governed by the high standards that are applied elsewhere at other international financial institutions, that’s still to be worked out,” IMF First Deputy Managing Director David Lipton told Business Middle East.
