A better governing model for AIIB

Comments on Richard Kozul-Wright and Daniel Poon "Development finance with Chinese characteristics", 9/06/2015

I think that a new governing model for the Asian Infrastructure Investment Bank (AIIB) could be to seek a balance between economic weights or contributions to the AIIB and members' sovereignty.

Such a governing structure will have the feature of combining both the representative and senate structures in many Western democracies. It will have more desirable properties than both the current governing structures of the World Bank and the IMF. For example, it is more objective as opposed to the arbitrary nature of the existing ones.

Further, it gives an equal weight to each country in the sovereign part of the proposed structure. The objectiveness and fairness are superior to all the current models of governance.

If China and other countries are interested in successfully reforming the current international financing bodies, they are likely to have a much stronger argument should they carefully consider and device a better governing model and mechanism. The model proposed here can help them to advance their goals and endeavors in seeking to reform both the IMF and the World Bank.