AIIB
- INTERNATIONAL RELATIONS
News: FM urges AIIB to scale up investment in renewal energy, smart technologies
What's
in the news?
● Finance Minister Nirmala Sitharaman asked the Asian Infrastructure Investment Bank (AIIB) to scale up investment in renewal energy and smart technologies and also urged the multilateral agency to set up a regional office in India.
Key
takeaways:
●
AIIB began its operations in Beijing in January 2016 and has since
grown to 105 approved members worldwide.
●
The bank is a multilateral development
lender whose mission is financing the ‘Infrastructure
for Tomorrow’ with sustainability at its core.
●
India
is a founding member of AIIB with the second-highest
voting share.
● India holds 7.74% equity in the multilateral bank, next only to China (29.9%).
Asian
Infrastructure Investment Bank:
●
Asian Infrastructure Investment Bank
(AIIB) is a multilateral development
bank with a mission to improve
social and economic outcomes in Asia.
● Headquarters: Beijing, China.
Key
objectives:
●
To promote sustainable economic
development, create wealth and augment infrastructure connectivity in Asia by
investing in infrastructure & other productive sectors.
●
Working towards fostering regional
partnership & cooperation to address developmental challenges by working in
tandem with other bilateral and multilateral development institutions.
●
Asian Infrastructure Investment Bank
(AIIB) promotes investment in private
& public capital for development purposes.
●
AIIB uses the resources at its disposal
for funding development in the region, including projects that will contribute
to the balanced economic growth of the region.
● AIIB also works for promoting private investment in enterprises, activities, and projects contributing to economic development in the region wherever private capital is not available.
Members:
●
Currently, there are 104 member countries in AIIB.
●
India is one of the founding member of
AIIB.
● The U.S. and Japan are not among their members.
Membership
Criteria:
●
Membership to the Asian Infrastructure
Investment Bank (AIIB) is open to all
members of the Asian Development Bank or the World Bank.
● The bank also allows non-sovereign entities to apply for membership provided their home countries are members.
Voting
rights:
●
China is the largest shareholder with
26.61 % voting shares in the Asian Infrastructure Investment Bank followed by
India (7.6%), Russia (6.01%) and Germany (4.2 %).
●
The regional
members hold 75% of the total voting power in the Asian Infrastructure
Investment Bank (AIIB).