Optimistic on AIIB

Comments on Hui Feng "With the AIIB the world gets a new banker, and a chance to shape China’s view", 1/07/2015

While the main argument in this article is excellent, the following remarks are may be debatable.

"The world has a new banker. However, it lacks expertise in international development finance; it lacks international governance experiences; and its ideas are untested."

While there is no question that China is the initiator of the AIIB, this does not necessarily mean that the new bank will lack expertise and experience as the author put it. The governing body is not all Chinese and all relevant countries are likely to contribute capable and experienced personnel to the board. Member countries should have expertise and experience in existing international financing bodies.

In terms of ideas, the very bank itself is an excellent idea in meeting the infrastructure needs of many developing countries either in full or in part. The greater voting rights of developing countries including the most rapid growing ones will bring their tested experience to the table.

In summary, there is enough reason to be much more optimistic on the AIIB, its future and successful operation and its contribution to the transformation of developing economies.