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Inclusive AIIB can make a difference

By Lou Jiwei (China Daily) Updated: 2015-06-25 10:02

Thirdly, strengthening multilateral development system. As a regional multilateral development bank, the AIIB is a new member and new partner of the global development system. Among the founding members of the AIIB, developing countries in Asia account for the majority, thus enjoying a bigger voice at the table. This is commensurate with the evolving economic landscape of the world today, and is testament to the confidence and aspiration of Asian countries to spur infrastructure development and economic growth in the region. History sometimes rhymes. It should be recollected when regional multilateral development banks such as the Asian Development Bank and the European Bank for Reconstruction and Development emerged, they did not work at the expense of their more established peers; rather, as proved, they added to the collective strength of the multilateral development banks. Similarly, China could contribute more to the cause of global development by initiating the AIIB. Furthermore, considering the massive demand for infrastructure investment, the AIIB will serve to reinforce and supplement the established multilateral development banks as a whole. It merits mentioning that the AIIB will complement rather than compete with the existing multilateral development banks, as the AIIB has its own distinct mandate and focus of business.

Since the inception of the AIIB, China has been, and will continue to be committed to enhancing cooperation between the AIIB and the existing multilateral development banks, in an aim to scale up infrastructure investment in the region and promote sustainable development in Asia and the world at large.

II. The AIIB will continue to pursue an open, inclusive and multilateral approach.

Ever since the AIIB was initiated, preparation work has been progressing steadily and solidly, thanks to the strong support from all stakeholders.

Firstly, a participatory approach in line with the principle of "open regionalism". An open and inclusive approach has been followed through the process, and all interested countries are welcomed to join the bank, following the principle of "regional first and non-regional later". In October 2014, in Beijing, the first batch of 22 regional Prospective Founding Members signed the Memorandum of Understanding on Establishing the AIIB (the MOU hereafter). Since then, the AIIB membership has expanded rapidly through multilateral approach, as agreed by existing members. As of mid-April 2015, the number of AIIB Prospective Founding Members had added up to 57 countries, spanning five continents from Asia, Oceania, Europe, Latin America to Africa, hence the AIIB has achieved wide representation on a global scope.

Secondly, advancing the multilateral process. After the MOU was signed, the 22 existing members reached an agreement on the preparation process and the working mechanism on establishing the AIIB. At the heart of the mechanism is the Chief Negotiators' Meeting at the Finance Deputies' level, which serves as the primary platform responsible for negotiating the Articles of Agreement. The Multilateral Interim Secretariat (the Secretariat hereafter) was established to provide technical support and services to the Chief Negotiators' Meeting. It has been agreed that decisions associated with AIIB establishment would be made multilaterally by consensus where possible, otherwise by a 75% majority of existing members. Prospective Founding Members are welcome to nominate qualified secondees to work at the Secretariat. Meanwhile, professional consultants are recruited from the market, with a view to enhancing the professionalism of the Secretariat, and make it better equipped to provide quality technical support.

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