04 December 2014
A new multilateral bank was created in October 2014 with the formal launch of the Asian Infrastructure Investment Bank (AIIB), which is backed by at least 21 countries in the region. The new multilateral institution’s main lending thrust is in the area of infrastructure financing across Asia, backed by an initial paid- up capital of $50 billion and with authorized capital of $100 billion.
The timing of the establishment of the bank could not be more opportune. The infrastructure needs across Asia are great, especially as countries try to bridge their own domestic infrastructure deficit. According to the Asian Development Bank (ADB), infrastructure investment needs in Asia could reach $750 billion annually during the period 2010-2020. The ADB’s estimated lending approval each year of about $13 billion is simply not enough to support Asia’s infrastructure financing needs.
…Don Rodney Ong Junio is an Associate Research Fellow at the Centre for Multilateralism Studies, S. Rajaratnam School of International Studies.
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Last updated on 27/01/2016