This article was specifically requested as an op-ed by the Renmin Ribao at very short notice. I submitted it in early December 2014 in English and they sent a Chinese translation for my approval. I approved it but it was then never published.
The Asian Infrastructure Investment Bank (AIIB) is a sign of Asian commitment to both regional and global economic development. Besides promoting regional connectivity and self-reliance for Asian countries, the AIIB also creates opportunities for developed countries in the form of greater investment opportunities as well as for promoting their own economic recovery. As the Chinese Finance Minister Lou Jiwei has pointed out, historically, the establishment of regional multilateral development banks such as the Asian Development Bank (ADB) or the European Bank for Reconstruction and Development did not weaken the influence of existing development banks such as the World Bank. Rather, it was the total capacity of development financing that increased promoting still further development of the global economy. Thus, the AIIB will be an additional source for development financing in the Asian region with a specific focus on infrastructure and in contrast to the ADB with its focus on poverty alleviation. Continue reading Asian Infrastructure Investment Bank: Promise and Responsibility