Members named for Asia infrastructure bank

[aliaselin]

Members named for Asia infrastructure bank - Business - Chinadaily.com.cn
A milestone agreement for the structure of the Asia Infrastructure Investment Bank (AIIB) has been reached, with 21 Asian countries, including India, stepping forward as founding members.





An intergovernmental memorandum of understanding was signed on Friday morning, opening the way for the formal establishment of the China-proposed financial body that will be tasked with providing funds for regional infrastructure projects'

The 21 economies are: Bangladesh, Brunei Darussalam, Cambodia, China, India, Kazakhstan, Kuwait, Lao PDR, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Uzbekistan, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan, Vietnam.

During a Southeast Asia visit last October, Chinese President Xi Jinping put forward a proposal to establish the AIIB to promote connectivity and economic integration in Asia.

Since that timeChinahas held five rounds of talks with interested countries on setting up the AIIB and achieving its reported capital target of $100 billion. As of Friday,Japan,Australia, South Korean andIndonesiawill not take part in the AIIB.

China's Finance Minister Lou Jiwei said in a Wednesday conference that the AIIB is an open organization in terms of admitting members, with a guiding principle thatnations in the region comes first

Lou said the AIIB has a different focus than established multilateral organizations such as World Bank and Asian Development Bank (ADB) but added that the leaders of these groups have welcomed the establishment of the AIIB and will hopefully cooperate in certain projects.

The ADB has estimated that in the next decade Asian countries will need $8 trillion in infrastructure investments to maintain the current economic growth rate.

A general view of the signing ceremony of the Asian Infrastructure Investment Bank at the Great Hall of the People in Beijing Oct 24, 2014. [Photo / Agencies]

 

[TaiShang]

China, India launch new Asia Infrastructure Bank
October 24, 2014, BRICS Post

Chinese Finance Minister Lou Jiwei at the signing ceremony of the new infrastructure bank in Beijing on 24th October 2014 [Xinhua]


In a landmark achievement, 21 Asian nations including China and India on Thursday signed on a new infrastructure bank which would rival the World Bank.

The governments of Bangladesh, Brunei Darussalam, Cambodia, China, India, Kazakhstan, Kuwait, Lao PDR, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Uzbekistan, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan, Vietnam signed on as founding members of the new Asia Infrastructure Investment Bank (AIIB) in Beijing on Friday.

Chinese Finance Minister Lou Jiwei said on Friday the “multi-national financial institution which is fair, just, open … with a good governance structure” will be an “efficient financing platform for infrastructure”.

Lou said the AIIB has a different focus than established multilateral organizations such as World Bank and Asian Development Bank (ADB).

China and other emerging economies, including BRICS, have long protested against their limited voice at other multilateral development banks, including the World Bank, International Monetary Fund and Asian Development Bank.

The ADB has estimated that in the next decade Asian countries will need $8 trillion in infrastructure investments to maintain the current economic growth rate.

Chinese President Xi Jinping had last October proposed to establish the AIIB to boost Asian economic integration and infrastructure projects like roads, railways, ports across the region. The new Bank has a capital target of more than $100 billion.

US allies Japan and Australia along with South Korea and Indonesia are notable absentees from the list of nations who signed up for the China-led Bank. The AIIB will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan.

In July, World Bank Group President Jim Yong Kim said that he welcomed a new multilateral infrastructure bank, saying there was a “massive need” for new investment in this area.

The BRICS nations have already announced a $100 billion development bank during the 6th BRICS Summit in Brazil this year.

***

Japan? Understood, pretty much has to do whatever the US tells them to do. Korea? OK, it is already a developed nation and would not like to be associated with an organization that is geopolitical as much as economic.

But, why in the world Indonesia has been absent?

 

[Beidou2020]

China, India launch new Asia Infrastructure Bank
October 24, 2014, BRICS Post

Chinese Finance Minister Lou Jiwei at the signing ceremony of the new infrastructure bank in Beijing on 24th October 2014 [Xinhua]


In a landmark achievement, 21 Asian nations including China and India on Thursday signed on a new infrastructure bank which would rival the World Bank.

The governments of Bangladesh, Brunei Darussalam, Cambodia, China, India, Kazakhstan, Kuwait, Lao PDR, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Uzbekistan, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan, Vietnam signed on as founding members of the new Asia Infrastructure Investment Bank (AIIB) in Beijing on Friday.

Chinese Finance Minister Lou Jiwei said on Friday the “multi-national financial institution which is fair, just, open … with a good governance structure” will be an “efficient financing platform for infrastructure”.

Lou said the AIIB has a different focus than established multilateral organizations such as World Bank and Asian Development Bank (ADB).

China and other emerging economies, including BRICS, have long protested against their limited voice at other multilateral development banks, including the World Bank, International Monetary Fund and Asian Development Bank.

The ADB has estimated that in the next decade Asian countries will need $8 trillion in infrastructure investments to maintain the current economic growth rate.

Chinese President Xi Jinping had last October proposed to establish the AIIB to boost Asian economic integration and infrastructure projects like roads, railways, ports across the region. The new Bank has a capital target of more than $100 billion.

US allies Japan and Australia along with South Korea and Indonesia are notable absentees from the list of nations who signed up for the China-led Bank. The AIIB will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan.

In July, World Bank Group President Jim Yong Kim said that he welcomed a new multilateral infrastructure bank, saying there was a “massive need” for new investment in this area.

The BRICS nations have already announced a $100 billion development bank during the 6th BRICS Summit in Brazil this year.

***

Japan? Understood, pretty much has to do whatever the US tells them to do. Korea? OK, it is already a developed nation and would not like to be associated with an organization that is geopolitical as much as economic.

But, why in the world Indonesia has been absent?

That's what I thought.

Why is Indonesia absent. It seems the US regime has successfully infiltrated Indonesia and got them in their pocket.

I fully support this AIIB, anything that diminishes American hegemony over the world, is good news for humanity. Most informed Americans will support anything that diminishes American hegemony as they realise the US regime is their enemy not Russia or China or Iran.

 

[TaiShang]

That's what I thought.

Why is Indonesia absent. It seems the US regime has successfully infiltrated Indonesia and got them in their pocket.

I fully support this AIIB, anything that diminishes American hegemony over the world, is good news for humanity. Most informed Americans will support anything that diminishes American hegemony as they realise the US regime is their enemy not Russia or China or Iran.

It is because of US pressure. Unfortunate that Indonesia has to give in.

According to FT “Indonesia excused itself from being involved [in the AIIB] at this stage, saying the newly installed government had not yet had time to consider Beijing’s proposal.”

Let's see what they will decide to do after the new government finds time to consider Beijing's proposal. Or, they may as well decide to go with the ADB or World Bank.

 

[Viet]

the new bank will be dominated by China, thus Japan is not interested. But I wonder why Korea and Indonesia don´t want to join.

 

[Beidou2020]

the new bank will be dominated by China, thus Japan is not interested. But I wonder why Korea and Indonesia don´t want to join.

US pressure.

 

[TaiShang]

the new bank will be dominated by China, thus Japan is not interested. But I wonder why Korea and Indonesia don´t want to join.

Definitely US pressure. Especially for Indonesia and Korea. For Japan, well, they also do not want a rival institution to ADB. But, heck, it is a social Darwinist world for organizations. We will see which one is going to prosper.

 

[Viet]

Definitely US pressure. Especially for Indonesia and Korea. For Japan, well, they also do not want a rival institution to ADB. But, heck, it is a social Darwinist world for organizations. We will see which one is going to prosper.

that can be the case. China as the largest owner will dominate the new bank and America hates competition. I hope you won´t link political concessions to loans, otherwise it is a CCP bank.

 

[powastick]

Definitely US pressure. Especially for Indonesia and Korea. For Japan, well, they also do not want a rival institution to ADB. But, heck, it is a social Darwinist world for organizations. We will see which one is going to prosper.

I would like to point out that Indonesia is a major recipient IMF bailout during 1997 crisis and allow local bank bankrupt. Malaysia rejected it.

 

[TaiShang]

that can be the case. China will dominate the new bank, I hope you don´t link political concessions to loans, otherwise it is a CCP bank.

The underlying feature of any institution that China leads or dominated heavily is non-intervention.

Hence, many developing countries will eventually find it more to their interests to work with these institutions which will carry little political clout. Unlike the Western counterparts whose economic aid comes with a lot of strings attached, these alternative institutions will be more consensus-based and non-interventionist.

Any country, including Vietnam, can be sure that there will be no interference in their internal affairs in exchange for development aid--an experience that will defy the orthodox Western model.

If these conditions are not met, rest assured, Chinese model will also fail in the long run--just as the Washington Consensus is poised to. Personally, it is the last thing I would like to see is China attaching certain political concessions related to the recipient economies' internal affairs in exchange for aid and loan.

 

[mike2000]

China, India launch new Asia Infrastructure Bank
October 24, 2014, BRICS Post

Chinese Finance Minister Lou Jiwei at the signing ceremony of the new infrastructure bank in Beijing on 24th October 2014 [Xinhua]


In a landmark achievement, 21 Asian nations including China and India on Thursday signed on a new infrastructure bank which would rival the World Bank.

The governments of Bangladesh, Brunei Darussalam, Cambodia, China, India, Kazakhstan, Kuwait, Lao PDR, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Uzbekistan, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan, Vietnam signed on as founding members of the new Asia Infrastructure Investment Bank (AIIB) in Beijing on Friday.

Chinese Finance Minister Lou Jiwei said on Friday the “multi-national financial institution which is fair, just, open … with a good governance structure” will be an “efficient financing platform for infrastructure”.

Lou said the AIIB has a different focus than established multilateral organizations such as World Bank and Asian Development Bank (ADB).

China and other emerging economies, including BRICS, have long protested against their limited voice at other multilateral development banks, including the World Bank, International Monetary Fund and Asian Development Bank.

The ADB has estimated that in the next decade Asian countries will need $8 trillion in infrastructure investments to maintain the current economic growth rate.

Chinese President Xi Jinping had last October proposed to establish the AIIB to boost Asian economic integration and infrastructure projects like roads, railways, ports across the region. The new Bank has a capital target of more than $100 billion.

US allies Japan and Australia along with South Korea and Indonesia are notable absentees from the list of nations who signed up for the China-led Bank. The AIIB will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan.

In July, World Bank Group President Jim Yong Kim said that he welcomed a new multilateral infrastructure bank, saying there was a “massive need” for new investment in this area.

The BRICS nations have already announced a $100 billion development bank during the 6th BRICS Summit in Brazil this year.

***

Japan? Understood, pretty much has to do whatever the US tells them to do. Korea? OK, it is already a developed nation and would not like to be associated with an organization that is geopolitical as much as economic.

But, why in the world Indonesia has been absent?

Thats exactly the same question i was just about to ask . lool guess they dont want to mess up with the worlds sole superpower.
You people seem to underestimate the influence/leverage the U,S has in Asia. As i said its still by far the dominant power in asia, and things wont change anytime soon. In fact members there want more U.S involvement.

 

[TaiShang]

Thats exactly the same question i was just about to ask . lool guess they dont want to mess up with the worlds sole superpower.
You people seem to underestimate the influence/leverage the U,S has in Asia. As i said its still by far the dominnant power in asia, and things wont change anytime soon. In fact members there want more U.S involvement.

In terms of Indonesia, it is not a done deal yet. Japan is already a lost cause for China-- absent a major, radical change in Japan's domestic political structuring. Korea, I guess, just wants to be on the safer side. But they seem to be less responsive to US pressure than Japan.

But, yes, the US is still quite powerful and influential in the Asia-Pacific.

 

[hans]

China usually does not require political concession for loans..
Actually China provide a complete solution, from loans to construction,
You also don`t need to pay with cash. Mines, material, oils are all fine...

that can be the case. China as the largest owner will dominate the new bank and America hates competition. I hope you won´t link political concessions to loans, otherwise it is a CCP bank.

 

[aliaselin]

Some news said Indonesia did not take part in because their new government were just elected so it takes time for the new government to evaluate the treaty

 

[TaiShang]

Some news said Indonesia did not take part in because their new government were just elected so it takes time for the new government to evaluate the treaty

Yes, I believe, eventually, Indonesia will join.

I wish Korea would, as well, but, not likely. Maybe if a change in power occurs. There is local resentment to US military presence in Korea. But that has yet to turn into a political capital.