Multilateral Bank Creates New Platform for Global Economic Governance
China initiated multilateral bank the Asian Infrastructure Investment Bank (AIIB) started its operations marking a milestone in the reform of the global economic governance system. Representatives from 57 founding countries gathered in Beijing for the bank’s opening ceremony in Diaoyutai State Guesthouse with president Xi Jinping making the welcome speech. The joint efforts of all the members of the AIIB are professional, efficient and clean development bank for the 21st century that have a new platform to assist and foster a community of shared future for mankind in making a new contribution to prosperity in Asia and beyond and to lend new strength in the improvement of global economic governance.
At the ceremony, Chinese Finance Minister Lou Jiwei was declared and elected to be the first chairman of the AIIB board of governors and Jin Liqun was elected to be the first AIIB president. In addition to subscribing capital, China promised to contribute 50 million U.S. dollars to the project preparation special fund that will be established to support the preparation for infrastructure development projects in less developed member states. Furthermore the AIIB promotes infrastructure relates investment and financing for the benefit in all sides, keeping Asia’s largest infrastructure development demand in mind.
The initiative in establishing the AIIB is a constructive more that enables China to undertake more international obligations, promote improvement of the current international economic system and provide more international public goods. Statistics shown that between 2010 to 2020 eight trillion U.S. dollars in investment is needed in the Asia Pacific region for the improvement of infrastructure. President Xi Jinping is expecting a China initiated institution and all existing multilateral development banks to complement each other to get mutual strength and cooperation in join financing, capacity building and knowledge sharing.
During Xi’s address in the founding conference of the AIIB council, Chinese Premier Li Keqiang stated that operations of the new multinational development bank is positive and constructive with a significance ofr global economic governance reform. Stating Asia as an engine for the global economic growth, sustainable development of the Asian Economy and regional economic integration will rely on the infrastructure construction and connectivity that will help facilitate flow of trade, information and investment.the aim if AIIB is to widen financial channels, improve supply to bring common development in the region, expand general needs and promote international cooperation on production capacity to innovate more modes in realizing a diverse and inclusive cooperation.