Asian Infrastructure Investment Bank: An Assessment

Lauded as one of the most remarkable Chinese initiatives in the international financial arena, the Asian Infrastructure Investment Bank (AIIB) sets the stage for China's greater role in the international economic system as a prominent stakeholder. Headquartered in Beijing, the bank is expected to play a key role in plugging the infrastructure gaps in Asia, which have been estimated at US$8 trillion between the years 2010 and 2020. The setting up of the AIIB will have far-reaching economic as well as politico-strategic implications for countries across Asia and beyond. While the AIIB has been seen as a remedy to address infrastructure deficit in Asia, it is unlikely to meet the US$8 trillion goal on its own. The biggest challenge before the bank, therefore, is to prioritise in terms of selecting projects so that it optimally utilises the available financial resources and functions as a transparent and impartial organisation, in addition to making a swift and smooth transition from a 'Chinese initiative' to a 'China-led initiative' that yields equitable benefits to all its member countries.