Facebook Twitter 新浪微博 腾讯微博 Wednesday 3 June 2015
English>>People's Daily Online Exclusives

AIIB kindles hope for Asian prosperity

(People's Daily Online)    13:29, April 20, 2015
File photo

The number of prospective founding members of the Asian Infrastructure Investment Bank (AIIB) was finalized at 57 on Apr. 15, 2015.

Comments on the AIIB from people of different countries and fields of expertise show that the AIIB is winning more support and constructive suggestions and is becoming less of an emotional issue – less likely to invite negative responses and groundless suspicions. This phenomenon demonstrates that the AIIB has comes at the right time and is meeting development needs.

Investment in infrastructure does not arouse much interest in the international financial system, in spite of a large aggregate demand. There has been an enormous shortfall in the funds needed to break the infrastructure bottleneck in Asia since the U.S. withdrew quantitative easing and a certain amount of capital flowed out of the emerging markets.

The AIIB will introduce positive elements into the existing International economic order. As investment in infrastructure is not the core business of the World Bank, the Asian Development Bank and other multilateral financial institutions, it is possible for the AIIB and these institutions to complement each other, benefit from each other's development and ensure a coordinated development. Innovation in operational models can cut costs and improve efficiency. The AIIB will introduce a model featuring public-private partnership, realize private sector participation, and support infrastructure construction in low-income countries.

Economic factors play a role in the positive response towards the AIIB. The deeper reason behind the support for the bank lies in the fact that China is acting to implement the principle of "open regionalism" in the spirit of openness and tolerance. Analysts point out that the AIIB, a cooperation platform, will provide opportunities for many countries. Small and medium-sized Asian countries will be able to participate in an international financial institution for the first time. Luxembourg, Britain and other major players in the history of global financial markets can improve their competitiveness. Australia, Brazil and other countries rich in mineral resources can expand their share in the market. Qatar, Saudi Arabia and other countries with a big stock of sovereign wealth funds will have an opportunity to make stable investments. 

The founding of the AIIB shows that China, a major power, wants to assume greater responsibility for the peace and development of Asia and the wider world rather than establish dominance in regional and international affairs. China is taking concrete actions to build a new international relations based on win-win cooperation.  

In a passage titled Asia's Multilateteralism, published on April 13, 2015, Joseph E. Stiglitz, a Nobel laureate in economics, expressed his views on China's development: "Last month, I visited formerly remote areas of the country that are now prosperous as a result of the connectivity – and thus the freer flow of people, goods, and ideas – that such investments have delivered. The AIIB would bring similar benefits to other parts of Asia, which deepens the irony of US opposition."

The prosperity of Asia depends on infrastructure construction. This is why the world embraces the AIIB and wants to join the AIIB.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Ma Xiaochun,Yao Chun)

Add your comment

Related reading

We Recommend

Most Viewed


Key Words