China-led AIIB set to have more members than US puppet ADB

More than 20 countries are waiting to join the China-initiated Asian Infrastructure Investment Bank (AIIB), its designated president said on Saturday as he allayed concerns it was aimed to challenge US and Japanese influence in the region. The number could bring the AIIB on a par with or even surpass membership in the Japan-led Asian Development Bank (ADB), which currently has 67 members, 19 of them outside of the Asia Pacific, according to its website.

“We have 57 countries (which are potential founding members) and to my knowledge...more than 20 countries are on the waiting list,” Asian Infrastructure Investment Bank President-Designate Jin Liqun told delegates of the Singapore Summit conference, without naming them. “That makes it more than 70. I’m sure there will be more countries which will be interested,” added Jin, a former Chinese vice-finance minister who was put forward by Beijing to head the bank and was elected in August by the prospective founding members.

The Asian Infrastructure Investment Bank has been viewed by some as a rival to the Washington-based World Bank and the Manila-based ADB, which has been headed by Japan, its biggest donor, since it was founded in 1966. The United States of America and Japan — the world’s largest and third largest economies, respectively — have notably declined to join the Asian Infrastructure Investment Bank although they are members of the Asian Development Bank, but Jin said the door is open to both.

“It takes longer for some countries to reach their internal consensus in making their decision,” he said. “We’ve been very much patient. As you know, the door is open to all of the countries and if they make a decision just pick up the phone, make a call and we can handle the rest of the business,” he said, referring to the USA and Japan.

Of the 57 Asian Infrastructure Investment Bank potential founding members, 50 have already signed, including Australia, while the seven others have until the end of the year to affix their signatures. 

The bank will be based in Beijing and will have a capital of $100 billion, with $20 billion paid initially. It is expected to start operations next year. China will be the biggest shareholder with 30 percent.

Among non-Asian participants, Germany is the largest shareholder with 4.5 <g data-gr-id="29">per cent</g>, followed by France with 3.4 <g data-gr-id="62">per cent</g> and Brazil on 3.2 per cent. Jin said that the Asian Infrastructure Investment Bank is not aimed at challenging the Asian Development Bank and the World Bank for influence in Asia as the region’s funding requirements are so massive. He cited Asian Development Bank estimates that Asia’s infrastructure demand could reach $730 billion per year by 2020, vastly exceeding available resources from existing multilateral lenders.

“Creating Asian Infrastructure Investment Bank has never been about challenging existing institutions. The world stage is spacious enough to allow many actors to perform,” Jin said. 

Finance Minister Arun Jaitley has said that despite a global slowdown and its impact on countries, India remains insulated from the economic fallout and stands out as a “brighter spot”.