Asian Infrastructure Investment Bank By: Sherry Halim (International Trade and Economy Student) Contents :

A. Introduction B. Objectives C. Methodology D.Hypothesis E. Analysis F. Challenges G.Conclusion References A. Introduction Some people maybe already know what is ADB ( Asia Development Bank) or IMF ( International Monetary Fund). Now, we can add one more alphabet soup of international development banks, AIIB, or for the uninitiated, the Asian Infrastructure Investment Bank. On October 24th, representatives from 21 Asian nations (pictured below) signed an

agreement to establish the AIIB. The 21 countries are Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam. Through a participatory process, its founding members are developing its core philosophy, principles, policies, value system and operating platform. The Bank’s foundation is built on the lessons of experience of existing MDBs and the private sector. Its modus operandi will be lean, clean and green: lean, with a small efficient management team and highly skilled staff; clean, an ethical organization with zero tolerance for corruption; and green, an institution built on respect for the environment. The AIIB will put in place strong policies on governance, accountability, financial, procurement and environmental and social frameworks. B. Objectives There are so many arguments againts the establishment of AIIB, for example, one article on the internet says “ Why China is creating a new development bank for Asia ?”, “ Is the new Asian Infrastucture Investment Bank (AIIB) led by China a threat to world stability ?”, or “ What is the difference between the China-led Asian Infrastucture Bank ( AIIB) and the

Japan-led Asian Development Bank? ” This question also came up on my mind about what’s make this AIIB so special and has differences than Japan’s ADB. These two develpment bank have same basis in Asia but why China still make a new development bank for Asia. There is one interesting article which we can find also on the internet ,they said “ Will Japan-China relations improve if Japan joins the Asian Infrastucture Investment Bank ?” because we know exactly what kind of relationship that China and Japan have. Even we could see these two countries have such a frosty relationship or we could say uneasy relationship. Tensions are high between East Asian neighbors China and Japan. China accuses Japan of failing to repent for historical wrongs, while Japan accuses China of dwelling on the past. Up to now, many controversy about this issue and still people deliberate over the Asian Investment Infrastructure Bank. However, in this essay I will not talk about the difference between AIIB and ADB or with other organization such as IMF or World bank. I more interest talking about the AIIB’s financing mechanism. In addition the big question came up on my mind “ How will AIIB (Asian Infrastructure Investment Bank) influence China and the world? ”. For this reason, in this essay I will more