The AIIB boosts Asian confidence in connectivity
- By Zhou Shixin
0 Comment(s)
Print
E-mail China.org.cn, November 1, 2014
Of course, there are also some other special cases. For example, Indonesian former President Yudhoyono initially responded positively to Xi's proposal and indicated that Indonesia welcomed and encouraged China's increasing investment in and contribution to building railways, bridges, highways, ports and airports in Indonesia. However, Indonesia has not yet join the initiative, not because it lacks willingness, but because of the country's domestic general election.
The AIIB cannot serve as an instrument for China to exert its influence. Negotiations on the AIIB's Articles of Agreement are scheduled to begin very soon after signing the Memorandum of Understanding. According to China's Finance Minister Lou Jiwei, given the evolution of negotiation process, the AIIB will be formally established by the end of 2015. In the future, more members can be accepted according to the principle "regional first and non-regional later," and the organizational structure of the AIIB will become more balanced. At the same time, as more countries become willing to contribute to the AIIB, China's current share of 50 percent of the bank's total capital can be diluted, thereby balancing the capital structure.
The creation of the AIIB shows China's resolve and willingness to help build infrastructure in Asia and throughout the world. According to the OECD's 2011 estimation, global infrastructure requirements over the next two decades will cost around US$50 trillion, and the Asian Development Bank estimates that developing Asian economies need to invest US$8 trillion between 2010 and 2020 just to keep pace with expected infrastructure needs. This leaves a huge space in which the AIIB can play a role. The AIIB can also help mitigate the international community's concerns and doubts about Chinese foreign aid, which meets "international standards of governance and transparency." Of course, China can also obtain a more favorable regional and international environment through this project in addition to gaining expertise and experience through its implementation.
The AIIB are also expected to enhance regional institutional connectivity. It will work with and complement the functions of existing multilateral development banks, such as the World Bank and the ADB, BRICS Development Bank, Bank of East Asia, the Shanghai Cooperation Organization Development Bank, the ASEAN Infrastructure Fund, China-ASEAN Investment Cooperation Fund, and others, to achieve a comprehensive pattern of win-win cooperation by adhering to global standards in funding projects.
The AIIB can also reinforce and help evaluate the feasibility of projects of initiatives such as APEC Framework on Connectivity, the Master Plan on ASEAN Connectivity and the New Silk Road initiatives so that it can do more to improve regional prosperity.
The author is a columnist with China.org.cn For more information please visit
http://www.shenbo75.com/opinion/zhoushixin.htm
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn
