AIIB reaffirms its commitment to good governance
The Asian Infrastructure Investment Bank will abide by its commitment to transparent multilateral governance, a characteristic which distinguishes it from other multinational development banks, said Joachim von Amsberg, AIIB vicepresident for policy and strategy.
“It means no single country runs the institution, the 77 members are running this group collectively,” von Amsberg said on Thursday at London’s Asia House, addressing a large audience of policymakers and financiers, including representatives from more than 20 countries’ embassies and high commissioners in London.
His words came just weeks after the AIIB announced its latest approval of seven countries to become new members in May, bringing its total membership to 77. The latest members are Bahrain, Cyprus, Samoa, Bolivia, Chile, Greece and Romania.
“Such strong international support shows that the AIIB has put its commitment of transparent multilateral governance into practice. So China is influential but it cannot drive decisions on its own. Decisions are made on the consensus and deliberations made in all countries.”
The AIIB’s largest shareholder, China, holds about 25 percent. Other emerging economies have much higher representation at the AIIB compared to multinational development banks led by developed countries.
Established just a year ago with 57 founding shareholders despite opposition from the United States, the AIIB has already approved a lending program of more than $2 billion.
Yet infrastructure spending potential is far greater. For instance, the McKinsey think tank estimates that the world needs to spend about $57 trillion on infrastructure by 2030, of which two-thirds will be required in developing markets.
Von Amsberg said the AIIB is still in its early days, being“anewkidon the block”, hence its core strategy of co-investing with existing institutions. In April the AIIB signed an agreement with the World Bank to deep en collaboration. Last year the AIIB and the European Bank for Reconstruction and Development agreed to jointly commit $55 million to upgrade a section of the motorway connecting Tajikistan with Uzbekistan.
The AIIB’s vision to unlock economic growth through infrastructure investment also chimes with the Chinaled Belt and Road Initiative, which received a boost of attention when China hosted the inaugural forum in May.
“The Belt and Road conference has increased awareness for infrastructure investment connecting Europe, Asia and Africa, which is linked to our objectives of investing in cross-country connectivity,” said Von Amsberg.
Shao Zheng, counselor for press and public affairs at the Chinese embassy in London, praised his speech for its “openness and honesty”, adding that he believes London’s abundant engineering and financial services expertise can add great value to the AIIB’s work.