nternational     onomi       r anisations       ndia     16.13
     While much of the debate is centred on whether                         trillion for power plants and transmission,
     the AIIB will complement or compete with                               $1.1 trillion for telecommunications,
     existing organisations, it is intended to be more a                    and $0.4 trillion for water and sanitation
     commercial bank—with nations as shareholders,                          investments.23
     than a purely development aid institution. The                  (iii) Oxford Economics reported that by
     AIIB will start with an authorised capital base of                     2025, the region will constitute 60 per
     US$ 1 billion to be enhanced to US $ 100 billion.                      cent of global infrastructure investment,
          Experts have termed it as a rival for the                         with China’s share alone is expected to
     International Monetary Fund (IMF), the World                           increase from around 22 per cent to 36
     Bank (WB) and the Asian Development Bank                               per cent over the next decade.
     (ADB), which are regarded as dominated by                       (iv) Despite the significant economic growth
     developed countries like the United States.21                          enjoyed by countries such as China, India,
     The United Nations has addressed the launch of                         and South Korea in recent decades, many
     the AIIB as ‘scaling up financing for sustainable                      countries among the developing Asian
     development’ and for the concern of Global                             regions are still mired in poverty, suffering
     Economic Governance.22                                                 from a profound lack of access to modern-
          As per the experts and analysts, there are                        day necessities such as sanitation, a reliable
     several factors which are behind such an initiative                    power grid, and adequate transportation
     coming from China. Major ones are as given                             and communications networks.
     below:                                                           (v) It is believed that the new bank could
           (i) The Chinese government has been                              allow Chinese capital to finance these
                frustrated with what it regards as the slow                 projects and allow it a greater role to
                pace of reforms and governance, and                         play in the economic development of the
                wants greater input in global established                   region commensurate with its growing
                institutions like the IMF, World Bank                       economic and political clout.
                and Asian Development Bank which
                                                                  Stand of the USA and Japan: The United States,
                it claims are dominated by American,
                                                                  Japan and Canada remain firmly on the sidelines
                European and Japanese interests.
                                                                  despite a number of their closest allies and partners
         (ii) The ADB, a Manila-based regional                    recently breaking ranks. The US has argued that
                development bank designed to facilitate           the AIIB doubles up on existing organisations,
                economic development in Asia, estimated           such as the World Bank and ADB, but doubts it
                in a report that developing Asian countries       will have adequate transparency and governance
                have an infrastructure demand of about            standards. However, it appears the US may be
                US$ 8 trillion between 2010–2020—                 softening its stance. Japan has said it would not be
                $2.5 trillion for roads and railroads, $4.1
                                                                    23.   The Economist, ‘An Asian Infrastructure Bank: Only
       21.    The Guardian, ‘Support for China-led development            Connect’, 4 October, 2013; Biswa N. Bhattacharyay,
              bank grows despite US opposition’, UK edition, 13           Estimating Demand for Infrastructure in Energy,
              March, 2015.                                                Transport, Telecommunications, Water and
       22.     nited ations inancing for evelopment ffice, lo al              i io i     i        e cific       -     , Asian
              Economic Governance’, New York, 20 March, 2015.             Development Bank Institute, 9 September, 2010.