30 November 2015 / APPFI.PH
by Philip Vincent Alegre
The world economy has long been dominated by institutions heavily influenced by the West and its allies. However, a new player in the form of the Asian Infrastructure Investment Bank (AIIB) has arrived at the scene, causing a stir and sparking debates and discussions on its implications for the world economy and global order in general.
AIIB was first proposed by Chinese President Xi Jinping in 2013 during a series of visits to Southeast Asian countries. This Chinese-led financial institution has the main goal of providing loans to finance infrastructure development that would facilitate economic growth.
AIIB has claimed that it seeks to complement existing financial institutions such as the International Monetary Fund, World Bank, and the ADB, all of which are US- or Japan-dominated. However, analysts can’t help but see the institution as pursuing goals beyond its declared intentions. Moreover, the dominant players themselves are not likely to just move aside and let the new kid rule the block. Read more…