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AIIB driven by projects and not politics: Alexander

The Asian Infrastructure Investment Bank (AIIB), conceived and hosted by China, is essentially a multilateral development bank that is driven solely by the “quality of projects and not politics”, according to its Vice-President, Danny Alexander.



Background:
This clarification came against the backdrop of India’s strategic concerns regarding the China-Pakistan Economic Corridor (CPEC) that covers areas including Pakistan-occupied-Kashmir. 

  • CPEC is the so-called ‘flagship’ project of China’s One-Belt-One-Road (OBOR) initiative, aimed at developing infrastructure in more than 60 countries. OBOR is among those that will get AIIB funding.

About AIIB:
The AIIB was established as a new multilateral financial institution aimed at providing “financial support for infrastructure development and regional connectivity in Asia.”
  • It was founded in October, 2014, and will have its headquarters in Beijing.
  • Its goals are also to boost economic development in the region, create wealth, prove infrastructure, and promote regional cooperation and partnership.
  • The value of AIIB’s authorized capital amounts to $100 billion, with almost $30 billion invested by China.
  • The bank expects to lend $10 billion to $15 billion a year for the first five years of its operations, beginning in the second quarter of 2016.
  • India is an influential member of the AIIB as it has the second-largest voting share and percentage of shares (next only to China) in the multilateral institution that has 57 member countries.



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