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AIID is a positive initiative

Comments on Andrew Elek “The potential role of the Asian Infrastructure Investment Bank”, 12/02/2014, http://www.eastasiaforum.org/2014/02/11/the-potential-role-of-the-asian-infrastructure-investment-bank/

From reading this article by Andrew Elek, the AIIB is largely if not exclusively an initiative by China. It is understandable that China has made such an initiative, given China's economic size, huge savings including foreign exchange reserves and its experience in economic development and infrastructure investment/building, as well as the needs from the region.

It is a positive step from China to contribute to a better Asia and APEC.

It also appears that such an initiative may also reflect China's desire for reforms to existing international institutions and the difficulties that it has faced in that direction.

It is not very clear from the article, whether AIIB will be a Chinese state bank, a private bank with some support from the Chinese government, an international institution or other types of institution/organisation, even though the articles seems to imply the form of AIIB is likely to be dependent on consultation and negotiation China has and will have with APEC members and other interested or potentially interested parties.

The broader the shareholders or stakeholders of the AIIB, the better its influence is likely to have. On the other hand, decentralisation of the governing structure may have implications for decision making.

An appropriate balance is needed to make the AIIB most useful to and beneficial for the region.

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