AIIB :The major Asian player in financing development

The Infrastructure Investment Bank (AIIB) establishment

expect by the end of 2015,would enable China to do more

responsibility for global development.

China proposed the bank in 2013 to finance construction of

roads,ports and other infrastructure which the initial capital

at $50 billion (1.6 trillion baht) to get the bank start.

With some donation from other members set to increase

the size of the overall fund to more than $100 billion.

The bank is initial by Beijing to increase it influence in

global finance  and expand trade links.The bank dead line

for others country to join was at March,but still welcome

 after that.

 At the end of March 31,foundation country member of AIIB

are more than 40 countries,which is the success step.

 

Some see the AIIB attempts to erose  US and Japan influence

over institutions.Washington’s apposition is simply because

 the fear of AIIB will has impact on the World bank and ADB.

Mr.Obama and his underlings have chosen to agrue there might

be corruption or Chaina might use the AIIB to help its own

diplomatic goal.The United State and Japan are cautious

about participation in the AIIB due to concerns over the

transparency of the operation.

 

The AIIB goal is becoming the major Asian player in

 

financing development in emerging nations.

 

 China promise to make the rule  of international community

 

 and will not bully other members , but work together with them

 

 and try to reach consensus in all decision without brandishing

 

without brandishing  the majority shareholder status.

 

Establishment of AIIB will be the beginning point to

change the world financial system.AIIB would

complement with other institution such as the ADB,

 the Manila –based multinational lender  dominate by

 Japan and the United States.

The World Bank,the Asian Development Bank and

the AIIB should consider themselves as complementary

to each other but a bit of competition on one project or

another is an adventage to increase efficiency.

 

The developing country in Asia would receive the bulk

 of loans for infrastructure project,which could be

co-provides with commercial banks and pension funds.

Non-Asian country would also only hold 25 per cent of

the AIIB ‘s shareholding,lower than their stakes at

the founding of the ADB.

 

Many country join the AIIB because Asian country need source

of fund to invest in infrastructure.The AIIB is the international

 

 organization with wide open to shareholder,management and

loans so that many can join.The AIIB will strongly stimulate

 

 expenditure in Asian country for the citizens.

Asia country will have more roll in world financial economic.

but in the short run,the power will remain stay with the World

Bank and ADB because they are specialized in the business for

a long time before.In the long run who will have significant role

 depend on their role nowsaday.If they want the economic to

 

 support and benefit each other ,the World Bank,ADB and

 

AIIB should not compele each others but should coordinate

 

to get more efficiency and more benefit to every country

 

 in the world.