NEWS reports said that fifty countries including Bangladesh signed a groundbreaking framework agreement in Beijing on Monday to create the China-led Asian Infrastructure Investment Bank (AIIB), with Dhaka being a founding member having a small stake of the US$ 100 billion bank. Bangladesh welcome the formal signing of the agreement of the bank and look forward to working with the bank for financing our major big projects including infrastructure projects. Specially we welcome the Chinese government initiative to create such an ambitious institution when World Bank and Asian Development Bank were financially overloaded with loan requests, in addition to funding politics. The birth of AIIB took place eight months after 22 countries signed the Memorandum of Understanding on the proposed multilateral bank and although Bangladesh would pay a small amount of contribution for a less than one share; its stakes will be determined with 50 other founding members on the basis of the sizes of their GDP along with amount of paid-up capital which has been fixed at US$ 20 billion.
Experts believe that the proposed multilateral bank will usher in new opportunities for the country, as the much-needed low-cost funds, which were not always available from existing widows, would boost Bangladesh’s development activities. It may particularly serve power, energy, roads and other physical infrastructure projects. For an emerging country like Bangladesh, it is going to be a new source for cheap foreign funds when the country is failing to develop major infrastructures for shortage of capital. All South Asian nations are the members of AIIB, India holds the largest share of 8.52 per cent in the bank and China’s share in the bank is 30.34 per cent. United States and Japan remained skeptical and out of it. Other Asian countries including Saudi Arabia and United Arab Emirates, large global economies such as Germany, Italy and UK have also signed the AoA of AIIB, sources said.
The launch of AIIB will bring about a global change as it seems like the beginning of a new era where international multilateral institutions. The bank’s strengths will probably stem from its inclusiveness of the Asian powers. Institutions such as the International Monetary Fund, the World Bank and the Asian Development Bank have made many promises over the years but were left unfulfilled. There is a growing fear that the AIIB will have problematic lending rules and policies; but we believe the AIIB represents a hope for better things to come as its policies are going to be need based financing of infrastructure projects of emerging economies. We hope the bank’s activities would pave the way to greater stability and prosperity in Asia and the rest of the world.
