This is an initiative I love and support a lot. The Asian Infrastructure Investment Bank with an authorised capital of US$100 billion is progressing well. 57 prospective founding members are expected to sign the Articles of Agreement for the formation of AIIB by year end. Malaysia is one of the member nations and it includes even the staunchest US supporter, Britain and Australia. The speed which this has moved is unprecented. Mooted by China’s President Xi Jin Ping just last October, it will be a real entity by 2015. Now we see the real meaning of, when there’s a will, there’s a way. “When there’s no will, everything stays still.”
I think ASIA should be the new attention for the world. Southeast Asia (SEA) may need a more formal grouping but I guess being grouped within ASIA is okay, still. On the other side, Europe remains in one piece even with the current Greece default but is no longer growing very fast. The US economy kept having continuous positive and negative signs on a monthly basis and the likelihood for interest rates to rise continue to be pushed back. For a region which is still growing feverishly, infrastructure is a key element. Domestic banks may not be enough to support such growth. AIIB is a bank by mostly ASIAN nations for ASIA.
Current world lenders include International Monetary Fund (IMF), World Bank and ADB (Asian Development Bank). One controlled by the US, one by Europe and another by Japan, which is a very strong US ally due to historical and defence reasons. The US is not a member and is not likely to be a member as it opposes the AIIB. It has also tried to pressure its allies not to join but guess what, both Britain and Australia have joined. Maybe because both economies know that the world growth would come from this part of the world and it’s great to be part of the positive story. Kudos AIIB and welcome to the world stage.
written on 3 July 2015
next suggested article: China, the new ‘World Bank?’