AIIB & The Changing World Order

Asian Infrastructure Investment Bank (AIIB)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : AIIB, ADB

Mains level : Not Much

The Government of India and the Asian Infrastructure Investment Bank (AIIB) has signed a $750 million agreement for “COVID-19 Active Response and Expenditure Support Programme”.

Try this question from CSP 2019

Q.With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements

  1. AIIB has more than 80 member nations.
  2. India is the largest shareholder in AIIB.
  3. AIIB does not have any members from outside Asia.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

What’s so special about this assistance?

  • This is the first-ever budgetary support programme from the AIIB to India.
  • The project is being financed by the AIIB and Asian Development Bank (ADB) in the amount of $2.250 billion, of which $750 million will be provided by AIIB and $1.5 billion will be provided by ADB.
  • The package aims to assist India to strengthen its response to the adverse impacts of the COVID-19 pandemic on poor and vulnerable households.
  • The current loan will be the second to India from AIIB under its COVID-19 crisis recovery facility apart from the earlier approved $500 million loans.
  • The primary beneficiaries would be families below the poverty line, farmers, healthcare workers, women, women’s SHGs, widows, PWDs, senior citizens, low wage earners etc.

About AIIB

  • The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia, began operations in January 2016.
  • AIIB has now grown to 102 approved members worldwide.
  • AIIB is a brainchild of China. The prime aim of the AIIB is infrastructure development.
  • By establishing interconnectivity across Asia through advancement in the construction of infrastructure and other productive services, the AIIB can stimulate growth and economic development in the Asian Region.

Must read:

International Economic Institution’s: ADB, BRICS Bank, AIIB

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