BANGLADESH has joined with 20 other regional nations aiming at initiating the Asian Infrastructure Investment Bank (AIIB) for funding rail, road, power and other projects in Asia. In addition to the Manila based Asian Development Bank, this Chinese venture for establishing the AIIB will hopefully catalyse the landscapes and economy of flourishing Asia in the coming days to enable it to attain sustainable regional development.
Asia, the womb of the major civilizations, not only contains a lot of human resources but has a legacy of the greatest and oldest civilizations, is the embryonic ground of all the major religions, and also possesses vast natural and mineral resources including, oil, gas, and coal. The continent now needs regional coordination, common socio-political goals, economic expansion, scientific and academic advanced knowledge to quicken its harmonious growth to ultimately overtake the US-led West hegemony. The establishment of the AIIB signals that the doctrine of Samuel P Huntington — the West is declining and the East is rising — is nearer to be achieved.
Reports said 21 Asian countries, willing to join the AIIB as founding members, signed a MoU on Friday in Beijing following Chinese President Xi Jinping’s meeting with the countries’ representatives. The countries are Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam.
The AIIB will be an inter-governmental regional development institution in Asia with an authorised capital of $100 billion while the initial subscribed capital is expected to be around $50 billion. It is expected that the Prospective Founding Members will complete the signing and ratification of the Articles of Agreement (AOA) in 2015 and the Bank will be formally established by the end of 2015 with its headquarters in Beijing. It was agreed that the GDP would be the basic parameter in determining the share allocation among member nations; therefore, China will be the largest shareholder. Previously, China announced it was willing to subscribe up to 50 percent of the capital, indicating a strong support to the AIIB. However, Chinese Finance Minister Lou Jiwei said China’s share ratio would be gradually diluted with more members joining AIIB in the future in order to widen the equity ratio and to ensure active participation of all members equally.
The Chinese FM said the Bank would develop an effective oversight mechanism to ensure the accountability of the Management. The president and senior management of the Bank will be selected through an open, inclusive, transparent and merit-based process.
The AIIB is an open, inclusive institution and all countries that are committed to regional development in Asia and global economic development can join AIIB as it set its motto to be “regional first and non-regional later”. We hope the AIIB will hopefully convey under developed countries to gradual economic enhancement, a welcoming mission. Let the bank for the Asians of the Asians meet with real success.
