Inclusive AIIB can make a difference
structure, operations, human resources, and management, among other aspects, to ensure the Bank will operate in a professional, efficient, transparent and clean manner.
On governance structure. The AIIB will adopt a modern governance structure which comprises three levels: the Board of Governors, the Board of Directors, and the Management. The Board of Governors is the highest decision making body of the Bank, and is vested by the Articles of Agreement to delegate authority to the Board of Directors as necessary. The Board of Directors will be non-resident initially and convene regularly to discuss major policy and operational issues. Effective oversight mechanism will be instituted to hold theManagement responsible and accountable. The Bank would show zero tolerance towards corruption and fraud, and enforce rigorous policies and regulations to uphold integrity.
On operational policies. The Bank will respect and learn from the good practices and experiences of the existing multilateral development banks in terms of environment and social framework, procurement policy, project management, and debt sustainability assessment, with a viewto putting into place strict and credible operational policies of the highest standards. Moreover, the AIIB will drawlessons from the “dos and don’ts” of the existing multilateral development banks, and explore better ways and practices to improve its operating efficiency and reduce costs.
On human resources management. China and other members will work in concert and provide guidance to the Secretariat through the ChiefNegotiators’Meeting mechanism on matters of human resource management and staff recruitment, through formulating policies, procedures and criteria, so as to tap the global talent pool for management and staff positions through open, transparent and merit-based multilateral processes.
On project pipeline and headquarters establishment. All Prospective FoundingMembers will work together on project pipeline development to ensure the Bank would be fully geared for a stellar debut upon its official establishment. Moreover, as the host country, China will continue to deliver good services to facilitate work associated with the Bank’s headquarters in Beijing, and provide strong and reliable support to enable efficient operation of the Bank.
The AIIB initiative hascomea longway since its inception. Nevertheless, it is but a first step leadinguptoan“epic journey”. More hardworklies ahead in our quest to build the AIIB intoaninternational financial institutionembodying the highest standards. I amconvinced that with the concerted efforts of the 57ProspectiveFoundingMembers, wewill liveupto the vision of building the AIIB into a multilateral development institution of the 21st Century, andcontribute in a meaningfulway to the great cause of regionalandglobal development.
The author is Minister of Finance of China. investments, the ChAFTA will trigger a new spree of Chinese investments in Australia.
Statistics show that last year bilateral trade reached $136.9 billion, 16 times the volume in 2000. And China is already Australia’s biggest trading partner, accounting for nearly a quarter of the country’s total trade value.
The ChAFTA is another comprehensive, high-level free trade agreement China has signed with countries in the Asia-Pacific after inking the FTA with the Republic of Korea on June 1 and the first with a major developed economy. As such, they epitomize China’s economic pursuit in the newera.
The fact that the ChAFTA covers important fields that have emerged in the newcentury such as e-commerce and government procurement shows China is dedicated to opening up wider to the outside world by adapting to the international trade and investment regime.
China has signed 14 FTAs with 22 countries and regions, which include the Association of Southeast Asian Nations, NewZealand, Singapore, Pakistan, Chile, Peru, Costa Rica, Iceland, Switzerland, the ROK and Australia.
The Chinese mainland has also signed Closer Economic Partnership Arrangements with Hong Kong andMacao special administrative regions and a cross-Straits economic pact— the Economic Cooperation Framework Agreement — with Taiwan.
The FTAs not only yield real benefits to the countries and regions that have signed them but also facilitate and boost multilateral trade. That more and more Asia-Pacific economies are strengthening their trade bonds with one another signifies they are moving toward regional integration.
As a region that accounts for more than 60 percent of the world’s population, Asia has a huge market potential and has been a constant magnet for foreign investments, especially after the 2008 global financial crisis. Yet since 2013, the flow of foreign funds has slowed down, creating increasing challenges for regional integration.
China, however, remains committed to signing FTAs with trade partners in the region that will yield exemplary results and thus help open newhorizons for regional integration. Global economic integration, which features free flow of capital, commodities and labor, is an irreversible trend. And China is willing to open its economy further so that it and its trade partners can reap huge benefits from free trade and global economic integration.