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European giants side with UK in Chinese World Bank row with US

Btw, How many percent will China share in this bank?

AIIB这一机构的性质主要是与美国和日本主导的世界银行、亚洲开发银行(ADB)相抗衡,由中国主导成立。中国计划持有50%的股份,因此中国主张总部也应设立在中国境内。但是,韩国政府强调AIIB是国际机构,一直都在说服中国。韩国认为,若AIIB总部设在韩国,美国、日本等西方国家担心中国会控制这一机构的忧虑也会得到缓解。韩国政府积极推进AIIB总部落户韩国的原因是因为不管从名还是从利来看,都没有损失。AIIB资本金达1000亿美元,是与ADB(1650亿美元)不相上下的超大型国际金融机构。如果韩国能成为其总部落户地,那么韩国在国际金融秩序中的地位也将大幅提高。  

China is to hold 50% of the shares.

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中国为什么在亚洲创立新的“世界银行”
Why China is creating a new "World Bank" for Asia


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TO THE alphabet soup of international development banks (ADB, AfDB, CAF, EBRD, IADB), add one more set of initials: AIIB, or for the uninitiated, the Asian Infrastructure Investment Bank. On October 24th, representatives from 21 Asian nations (pictured above) signed an agreement to establish the AIIB, which, as its name suggests, will lend money to build roads, mobile phone towers and other forms of infrastructure in poorer parts of Asia. China spearheaded the bank and hopes to formally launch it by the end of next year. More money for critical projects might seem unambiguously good, but the AIIB has stoked controversy because Asia already has a multilateral lender, the Asian Development Bank (ADB). Why is China creating a new development bank for Asia?

国际发展银行的缩略语(ADB亚洲发展银行,AfDB非洲发展银行,CAF拉美开发银行,EBRD欧洲复兴发展银行,IADB泛美开发银行)构成的字母汤中又多了一位新成员:AIIB亚洲基础设施投资银行。十月24日,21个亚洲国家代表签署协议成立AIIB,AIIB将向亚洲较贫穷地区借款修建道路、移动电话塔等基础设施。AIIB由中国带头发起,中国希望到明年正式启动该银行。关键项目得到更多投资无疑是件好事,但亚洲已有一个多边货款机构ADB亚洲开发银行,AIIB的成位引发了争议。中国为什么要在亚洲创建新的发展银行呢?

China’s official answer is that Asia has a massive infrastructure funding gap. The ADB has pegged the hole at some $8 trillion between 2010 and 2020. Existing institutions cannot hope to fill it: the ADB has a capital base (money both paid-in and pledged by member nations) of just over $160 billion and the World Bank has $223 billion. The AIIB will start with $50 billion in capital—hardly enough for what is needed but still a helpful boost. Moreover, while ADB and World Bank loans support everything from environmental protection to gender equality, the AIIB will concentrate its firepower on infrastructure. Officially at least, ADB and World Bank officials have extended a cautious welcome to the new China-led bank, saying they see room for collaboration.

中国官方答复是,亚洲存在巨大的基础设施资金缺口。ADB(亚洲开发银行)认为从2010年到2020年资金缺口达8万亿美元左右。现存机构都无法弥补这一缺口:ADB的资本基础(由成员国已缴的和承诺的资金构成)仅略高于1600亿美元,世界银行的资本基础为2230亿美元。AIIB初始资本基础为500亿美元,这远不能弥补亚洲基础设施资金缺口,但仍是一项有益的补充。ADB和世界银行的货款项目从环境保护到男女平等无不支持,而AIIB则专注于基础设施。至少就官员态度而言,ADB和世界银行已向这一由中国领导的新银行表示了谨慎的欢迎,称双方有一定的合作空间。

Behind the scenes, though, the Chinese initiative has set off a heated diplomatic battle. America has lobbied allies not to join the AIIB, while Jin Liqun, the Chinese official who will head the bank, has shuttled between countries to persuade them to sign up. At the bank’s inauguration ceremony, Australia, Indonesia and South Korea were conspicuously absent. In public, the concern cited by America and some of the hold-outs has been a lack of clarity about AIIB’s governance. Critics warn that the China-led bank may fail to live up to the environmental, labour and procurement standards that are essential to the mission of development lenders. However, China has insisted that AIIB will be rigorous in adopting the best practices of institutions such as the World Bank. Given that the bank will be placed under such a close microscope, there is good reason to believe China on this.

而私底下,中国成立AIIB的计划已引发了激烈的外交战。美国游说其盟友不要加入AIIB,而即将出任AIIB行长的中国官员金产群则穿梭于各国之间说服各国签字加入。在AIIB成立典礼上,美国、印尼、韩国三国缺席,引人注目。美国公开表达的担忧和一些坚持的观点是:AIIB的管理并不透明。批评人士称中国领导的AIIB可能达不到环境、人力和采购标准,而这些对发展银行的使命来说至关重要。然而中国坚称AIIB将严格遵循诸如世界银行等机构的最佳做法。鉴于AIIB会处于世界的密切关注之下,我们有理由相信中国能说到做到。

But the real, unstated tension stems from a deeper shift: China will use the new bank to expand its influence at the expense of America and Japan, Asia's established powers. China’s decision to fund a new multilateral bank rather than give more to existing ones reflects its exasperation with the glacial pace of global economic governance reform. The same motivation lies behind the New Development Bank established by the BRICS (Brazil, Russia, India, China and South Africa). Although China is the biggest economy in Asia, the ADB is dominated by Japan; Japan’s voting share is more than twice China’s and the bank’s president has always been Japanese. Reforms to give China a little more say at the International Monetary Fund have been delayed for years, and even if they go through America will still retain far more power. China is, understandably, impatient for change. It is therefore taking matters into its own hands.

但是,真正而未被说透的紧张来自于当前形势深层次的转变:中国将以牺牲亚洲既有势力美国和日本的利益为代
价,利用新银行AIIB扩展影响力。中国出资设立新的多边银行,而非把资金投入既有银行之中,这一决定表明了中国对全球经济管理改革缓慢进程的不满。也正是这种不满,促使中国与其他金砖国家成员创建新的发展银行。尽管中国是亚洲第一大经济体, ADB却由日本主导,日本在ADB的投票权二倍于中国,ADB主席往往由日本人担任。IMF(国际货币基金组织)略微增加中国话语权的改革已拖延数年而不实行,而且就算实行改革,美国仍将保留远多于中国的权力。因此也就不难理解,中国已对现行国际机构的改变失去了耐心,中国要自己掌控主动权

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Landscape of U.S. Failure: Financial Collapse Leads to War | Global Research

Scanning the headlines in the western mainstream press, and then peering behind the one-way mirror to compare that to the actual goings-on, one can’t but get the impression that America’s propagandists, and all those who follow in their wake, are struggling with all their might to concoct rationales for military action of one sort or another, be it supplying weapons to the largely defunct Ukrainian military, or staging parades of US military hardware and troops in the almost completely Russian town of Narva, in Estonia, a few hundred meters away from the Russian border, or putting US “advisers” in harm’s way in parts of Iraq mostly controlled by Islamic militants.


The strenuous efforts to whip up Cold War-like hysteria in the face of an otherwise preoccupied and essentially passive Russia seems out of all proportion to the actual military threat Russia poses. (Yes, volunteers and ammo do filter into Ukraine across the Russian border, but that’s about it.) Further south, the efforts to topple the government of Syria by aiding and arming Islamist radicals seem to be backfiring nicely. But that’s the pattern, isn’t it? What US military involvement in recent memory hasn’t resulted in a fiasco? Maybe failure is not just an option, but more of a requirement?

Let’s review. Afghanistan, after the longest military campaign in US history, is being handed back to the Taliban. Iraq no longer exists as a sovereign nation, but has fractured into three pieces, one of them controlled by radical Islamists. Egypt has been democratically reformed into a military dictatorship. Libya is a defunct state in the middle of a civil war. The Ukraine will soon be in a similar state; it has been reduced to pauper status in record time—less than a year. A recent government overthrow has caused Yemen to stop being US-friendly. Closer to home, things are going so well in the US-dominated Central American countries of Guatemala, Honduras and El Salvador that they have produced a flood of refugees, all trying to get into the US in the hopes of finding any sort of sanctuary.

Looking at this broad landscape of failure, there are two ways to interpret it. One is that the US officialdom is the most incompetent one imaginable, and can’t ever get anything right. But another is that they do not succeed for a distinctly different reason: they don’t succeed because results don’t matter. You see, if failure were a problem, then there would be some sort of pressure coming from somewhere or other within the establishment, and that pressure to succeed might sporadically give rise to improved performance, leading to at least a few instances of success. But if in fact failure is no problem at all, and if instead there was some sort of pressure to fail, then we would see exactly what we do see.

In fact, a point can be made that it is the limited scope of failure that is the problem. This would explain the recent saber-rattling in the direction of Russia, accusing it of imperial ambitions (Russia is not interested in territorial gains), demonizing Vladimir Putin (who is effective and popular) and behaving provocatively along Russia’s various borders (leaving Russia vaguely insulted but generally unconcerned). It can be argued that all the previous victims of US foreign policy—Afghanistan, Iraq, Libya, Syria, even the Ukraine—are too small to produce failure writ large enough to satisfy America’s appetite for failure. Russia, on the other hand, especially when incentivized by thinking that it is standing up to some sort of new, American-style fascism, has the ability to deliver to the US a foreign policy failure that will dwarf all the previous ones.

Analysts have proposed a variety of explanations for America’s hyperactive, oversized militarism. Here are the top three:

1. The US government has been captured by the military-industrial complex, which demands to be financed lavishly. Rationales are created artificially to achieve that result. But there does seem to be some sort of pressure to actually make weapons and field armies, because wouldn’t it be far more cost-effective to achieve full-spectrum failure simply by stealing all the money and skip building the weapons systems altogether? So something else must be going on.

2. The US military posture is designed to insure America’s full spectrum dominance over the entire planet. But “full-spectrum dominance” sounds a little bit like “success,” whereas what we see is full-spectrum failure. Again, this story doesn’t fit the facts.

3. The US acts militarily to defend the status of the US dollar as the global reserve currency. But the US dollar is slowly but surely losing its attractiveness as a reserve currency, as witnessed by China and Russia acting as swiftly as they can to unload their US dollar reserves, and to stockpile gold instead. Numerous other nations have entered into arrangements with each other to stop using the US dollar in international trade. The fact of the matter is, it doesn’t take a huge military to flush one’s national currency down the toilet, so, once again, something else must be going on.

There are many other explanations on offer as well, but none of them explain the fact that the goal of all this militarism seems to be to achieve failure.

Perhaps a simpler explanation would suffice? How about this one:

The US has surrendered its sovereignty to a clique of financial oligarchs. Having nobody at all to answer to, this American (and to some extent international) oligarchy has been ruining the financial condition of the country, running up staggering levels of debt, destroying savings and retirements, debasing the currency and so on. The inevitable end-game is that the Federal Reserve (along with the central banks of other “developed economies”) will end up buying up all the sovereign debt issuance with money they print for that purpose, and in the end this inevitably leads to hyperinflation and national bankruptcy. A very special set of conditions has prevented these two events from taking place thus far, but that doesn’t mean that they won’t, because that’s what always happens, sooner or later.

Now, let’s suppose a financial oligarchy has seized control of the country, and, since it can’t control its own appetites, is running it into the ground. Then it would make sense for it to have some sort of back-up plan for when the whole financial house of cards falls apart. Ideally, this plan would effectively put down any chance of revolt of the downtrodden masses, and allow the oligarchy to maintain security and hold onto its wealth. Peacetime is fine for as long as it can placate the populace with bread and circuses, but when a financial calamity causes the economy to crater and bread and circuses turn scarce, a handy fallback is war.

Any rationale for war will do, be it terrorists foreign and domestic, Big Bad Russia, or hallucinated space aliens. Military success is unimportant, because failure is even better than success for maintaining order because it makes it possible to force through various emergency security measures. Various training runs, such as the military occupation of Boston following the staged bombings at the Boston Marathon, have already taken place. The surveillance infrastructure and the partially privatized prison-industrial complex are already in place for locking up the undesirables. A really huge failure would provide the best rationale for putting the economy on a war footing, imposing martial law, suppressing dissent, outlawing “extremist” political activity and so on.

And so perhaps that is what we should expect. Financial collapse is already baked in, and it’s only a matter of time before it happens, and precipitates commercial collapse when global supply chains stop functioning. Political collapse will be resisted, and the way it will be resisted is by starting as many wars as possible, to produce a vast backdrop of failure to serve as a rationale for all sorts of “emergency measures,” all of which will have just one aim: to suppress rebellion and to keep the oligarchy in power. Outside the US, it will look like Americans blowing things up: countries, things, innocent bystanders, even themselves (because, you know, apparently that works too). From the outside looking into America’s hall of one-way mirrors, it will look like a country gone mad; but then it already looks that way. And inside the hall of one-way mirrors it will look like valiant defenders of liberty battling implacable foes around the world. Most people will remain docile and just wave their little flags.

But I would venture to guess that at some point failure will translate into meta-failure: America will fail even at failing. I hope that there is something we can do to help this meta-failure of failure happen sooner rather than later.
 
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Although there is a World Bank, it's very hard for developing nations to get loans from world bank. World bank always has very high and tough credit terms which most developing nations can't meet the requirements. Every year developing countries can only get 15% of loans from world bank's, 85% were borrowed by developed nations.
 
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Luxembourg confirms to become founding member of AIIB
Source:Xinhua Published: 2015-3-19 14:26:24

Luxembourg has already submitted its candidacy to become a prospective founding member of the Asian Investment Bank for Infrastructure (AIIB), the Finance Ministry of Luxembourg confirmed to Xinhua on Wednesday.

"With its adherence to the AIIB initiative, Luxembourg, as an important international financial center hosting an increasing number of Asian banks and a facilitator of investments between Europe and Asia, is ready to further develop its role as bridge-builder and gateway between the two continents," commented the minister Pierre Gramegna, in an interview by Xinhua.

According to the minister, Luxembourg will work hard with other founding members to ensure that the AIIB will meet the highest and most stringent standards in terms of good governance, transparent lending policies, social and environmental safeguards as well as state-of-the-art procurement guidelines.

Luxembourg is a reliable partner in international development cooperation and would like to further extend its commitment towards multilateral aid mechanisms, in particular in the Asia-Pacific region, he added.

According to a statement released on Tuesday, France, Germany and Italy intend "to become founding members of the Asian Infrastructure Investment Bank."
 
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So 31 members would share 50% while China hold 50%?

well because they are investing in it heavily :)

India will likely to hold 19% i.e. 2nd largest voting right among 26 co-founders (as of now), given potentially bigger stake holders like Japan and SK are not joining.

Lets see how it goes.
 
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Luxembourg confirms to become founding member of AIIB
Source:Xinhua Published: 2015-3-19 14:26:24

Luxembourg has already submitted its candidacy to become a prospective founding member of the Asian Investment Bank for Infrastructure (AIIB), the Finance Ministry of Luxembourg confirmed to Xinhua on Wednesday.

"With its adherence to the AIIB initiative, Luxembourg, as an important international financial center hosting an increasing number of Asian banks and a facilitator of investments between Europe and Asia, is ready to further develop its role as bridge-builder and gateway between the two continents," commented the minister Pierre Gramegna, in an interview by Xinhua.

According to the minister, Luxembourg will work hard with other founding members to ensure that the AIIB will meet the highest and most stringent standards in terms of good governance, transparent lending policies, social and environmental safeguards as well as state-of-the-art procurement guidelines.

Luxembourg is a reliable partner in international development cooperation and would like to further extend its commitment towards multilateral aid mechanisms, in particular in the Asia-Pacific region, he added.

According to a statement released on Tuesday, France, Germany and Italy intend "to become founding members of the Asian Infrastructure Investment Bank."
Luxembourg is small, but an very important financial centre.
 
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France, Germany and Italy have joined Britain in signing up to the China-backed Asian Infrastructure Investment Bank (AIIB), dealing a further blow to the US government.
Australia is also believed to be rethinking its position to stay allied with the US and reject joining the $50bn bank, which is seen as a rival to the World Bank.
Last week the UK said it believed its decision to become a founding member of the AIIB was in the national interest, shrugging off US concerns about the move.
"There will be times when we take a different approach (to the United States)," a spokesman for Prime Minister David Cameron told reporters, referring to the decision to join the bank. "We think that it's in the UK's national interest."
The AIIB has been feted by Beijing as a way of financing regional development.
Britain's move drew a cautious response from Washington, but Mr Cameron's spokesman said the Prime Minister did not think the episode would damage London's ties with the US, and that Chancellor George Osborne had discussed the matter with his American counterpart beforehand.
The AIIB would play "a complementary role" to other funding institutions, he said, and would help fill a genuine niche to provide additional investment to lower income countries in the Asia-Pacific region.
Britain would help ensure it upheld high standards of governance, he added, denying that the Government's decision to join the bank was part of a pattern of cosying up to Beijing too much.
Mr Osborne said on Thursday that Britain would join discussions with other founding members of the AIIB to set out the institution’s governance and accountability structures later this month, in a move to bolster relations with China.
“Forging links between the UK and Asian economies to give our companies the best opportunity to work and invest in the world’s fastest growing markets is a key part of our long-term economic plan,” Mr Osborne said last week.
“Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together.”
However, US National Security Council spokesman Patrick Ventrell voiced concerns over the decision.
“We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks,” he said.
“Based on many discussions, we have concerns about whether the AIIB will meet these high standards, particularly related to governance, and environmental and social safeguards.”
China and 20 other countries signed a memorandum of understanding to establish the Beijing-headquartered bank in October.
The bank has support from countries including India, Singapore, Malaysia, Cambodia, Pakistan, the Philippines, Uzbekistan and Vietnam.

European giants side with UK in Chinese World Bank row with US - Telegraph

Well i think we made a good decision. The U.S shouldnt always see things in a zero sum manner. This is mainly an economic affair for infrastructure developemnt in Asia, since there is still a HUGE GAP in Asia's infrastructural needs/demand, even this Chinese led agency wont still be able to solve the infrastructural deficiency in poorer Adsian countries. So i dont see why the U.S will be apprehensive about other countries joining . Its not a military/security deal or whatever. So no need to be so concerned. I think the U.S should join as well.:)

By the way, to all Chinese members here: WHERE IS YOUR 'BEST FRIEND' Russia? seems they dont want to join your AIIB?? LMAO...with friends like this.............lool Interesting indeed.:)
 
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So 31 members would share 50% while China hold 50%?
Fair distribution. China contribute half the money, so half the share. If you vietnam want half the share, why not contribute USD 50 billion?

Well i think we made a good decision. The U.S shouldnt always see things in a zero sum manner. This is mainly an economic affair for infrastructure developemnt in Asia, since there is still a HUGE GAP in Asia's infrastructural needs/demand, even this Chinese led agency wont still be able to solve the infrastructural deficiency in poorer Adsian countries. So i dont see why the U.S will be apprehensive about other countries joining . Its not a military/security deal or whatever. So no need to be so concerned. I think the U.S should join as well.:)

By the way, to all Chinese members here: WHERE IS YOUR 'BEST FRIEND' Russia? seems they dont want to join your AIIB?? LMAO...with friends like this.............lool Interesting indeed.:)
We already lend Russia USD400billion for oil deal and another 100billion for HSR. so they are loaded at the moment. :D
 
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Australia on brink of joining China's Asian Infrastructure Investment Bank

Braving US disapproval and joining the UK, New Zealand, Germany and France, Australia is widely expected to announce it will invest in the bank


China’s President Xi Jinping (fourth from right) meets with the guests at the Asian Infrastructure Investment Bank (AIIB) launch ceremony at the Great Hall of the People in Beijing in October 2014. Photograph: Reuters

Shalailah Medhora

Friday 20 March 2015 02.36 GMTLast modified on Friday 20 March 201503.01 GMT

Australia is on the brink of joining the Chinese-led Asian Infrastructure Investment Bank (AIIB), with the national security committee of cabinet reportedly giving the government the all clear to invest.

The policy will be taken to cabinet when it meets next week, Fairfax Media reports.

The prime minister, Tony Abbott, said “no final decision has been made” on the policy, after earlier this month indicating that a formal decision would be taken within a fortnight.

“We have a huge infrastructure deficit, not just in this country, but all over the region, and it’s important to do what we can to address that,” Abbott told reporters on Friday. “We are considering it. We have been considering it one way or another for quite a few months now.”

Australia has until the end of March to join the bank in order to be considered a foundation member.

In December, the trade minister, Andrew Robb, all but confirmed Australia would join the AIIB.

“It’s the wish of everyone in the cabinet, from the prime minister down,” he during an official visit to Beijing. “Tony Abbott has said publicly that we shall not only join, but do so enthusiastically.”

Labor has criticised the Coalition’s “chaotic” approach to the bank.

“Labor has been saying for months now that Australia should announce support for the Asian Infrastructure Investment Bank,” the opposition leader, Bill Shorten, and Labor’s foreign affairs spokeswoman, Tanya Plibersek, said in a joint statement.

“By contrast, all the Abbott government has done is dither, and squabble amongst themselves. Completely paralysed about what to do, they just did nothing, and opposed the bank. The Abbott government has totally mishandled this issue – it’s been chaos.”

Australia’s backing of the bank is likely to cause ructions with the United States, which opposes the formation of the bank because it signals a waning of US influence in the Asia Pacific region in favour of China.

A number of US allies have already signed up to invest in the AIIB, including Britain, France, Germany and New Zealand.

“Thirty governments have joined, so it’s a significant movement,” China expert from the Australian National University Ryan Manuel told Sky News on Friday.

Australia raised a number of concerns about the governance structure of the AIIB in August, putting forward suggestions to the Chinese government that would mirror governance provisions in other large institutions like the World Bank.

“If it’s possible to have a new multilateral institution, with transparency and good governance arrangements, obviously Australia would support that. I hope most other countries would as well,” Abbott said on Friday. “What we are considering with the AIIB is entirely consistent with what we are doing domestically.”

In October, Abbott said that if the governance arrangements were put in place, “not only will Australia be happy to join, but I imagine that Korea and Japan and the United States would also be happy to join and that would mean that we would have a maximally funded and maximally competitive infrastructure bank here in Asia.”

Australia on brink of joining China's Asian Infrastructure Investment Bank | Australia news | The Guardian
 
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