Asian Infrastructure Investment Bank

News:

Canada has frozen its ties with AIIB over allegations of substantial interference from the Chinese Communist Party.

What:

• It is a multilateral development bank.

Why:

• Conceived as a vehicle to address the growing need for development finance in Asia.

Significance:

• The AIIB is perceived as a rival of the Asian Development Bank and the World Bank. However, AIIB has much lesser capacities than the latter two.
• It also seen as a diplomatic coup for China. Through the AIIB, China has successfully attracted countries (including India) that are wary of Chinese development initiatives like BRI.

Who:

• It has a membership of >100 countries.
• China has the most voting power (26.58%), given its $27 billion contribution.
• India is the 2^nd largest shareholder (7.6% voting power) with $8 billion commitment.
• Russia is the 3^rd largest with 5.97% voting power.
• Other members include- Germany, South Korea, UK, Australia, France, Indonesia, etc.

Where:

• It is based in Beijing.

When:

• Started in 2016, with 57 members.

Facts:

• Some of the projects financed by the AIIB in India:
  • Chennai Metro Rail Phase 2
  • Chennai Peripheral Ring Road
  • Project to improve Assam’s secondary road network, etc.