What is the Asian Infrastructure Investment Bank?

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is to offer financial support or aid for infrastructural projects in the Indo-Pacific region; Asia. AIIB was established to address the infrastructure deficiency experienced by Asian countries and to also stimulate social and economic growth in the region.

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How Does the Asian Infrastructure Investment Bank Work?

The Asian Infrastructure Investment Bank (AIIB) commenced operations in January 2016. This development bank is headquartered in Beijing and has a growing membership of over 100 members worldwide. The core mission of the AIIB is to improve infrastructure, social and economic growth of countries within the Asian region and beyond. AIIB invests in the sustainable development of member countries and also provides technical support to countries in terms of infrastructural growth.

The History of the Asian Infrastructure Investment Bank

Before the Asian Infrastructure Investment Bank (AIIB) was finally established in January 2016, there are certain discussions and activities that led to its creation. The Asian Infrastructure Investment bank was first mentioned by Xi Jinping, China's leader at an APEC summit in 2013. However, when it was proposed, observers thought it was going to favor the Chinese government only and also challenge international investment banks and lending institutions. Also, because it was proposed that China would hold half of the voting shares of AIIB, its standards and good governance were questioned by the American government. Despite the objections of the U.S, AIIB was signed by almost all Asian countries, as well as half of NATO, which led to its establishment in 2016.

The Structure of the Asian Infrastructure Investment Bank

AIIB is controlled and headed by a Board of Governors and a Governor appointed and alternated between the member countries of AIIB. The bank has a Board of Directors which has the duty of formulating strategies, write annual plans and budgets of the bank and also perform oversight functions. AIIB has staff members which are headed by President. The president emerges by election and has a five-year tenure after which another election is conducted. A president can vie for a re-election after completing the first term.

Asian Infrastructure Investment Bank Priorities

There are several projects that the Asian Infrastructure Investment Bank (AIIB) prioritizes, these are;

• Infrastructure
• Environmental projects.
• Building, road, railway, ports, pipeline projects and other development plans.

Projects that connect two or more countries are of priority to AIIB, these includes railway construction that will link a substation in one country to a substation in another, telecommunications projects, road constructions, among others. As a multilateral development bank, AIIB partners with other development banks, private financiers, world billionaires and even the government for execution of projects.