Liqun Jin writes: The recent historic launch of the Asian Infrastructure Investment Bank has been highly anticipated – and rightly so. With the start of operations, the AIIB joined the family of multilateral financial institutions in supporting broad-based economic and social development in Asia. Sound and sustainable infrastructure investment will lead to better development outcomes, improve the lives and livelihoods of Asia’s citizens, and generate positive spillover effects in other parts of the world.
The role and importance of Asia in the international arena have increased, yet the region faces severe infrastructure gaps and thorny bottlenecks. Asia’s infrastructure investment needs have grown exponentially, and the AIIB’s resources, quite simply, will increase the pool of multilateral resources available to help meet them.
The AIIB’s founding members have a clear management vision: We will set a clear and high bar for organizational performance and governance, by upholding openness, transparency, accountability, and independence as its core institutional principles.
In drafting the AIIB’s Articles of Agreement and policy framework, we have worked with a diverse group of international experts to draw lessons from the existing multilateral institutions and from successful private-sector companies. We have held extensive rounds of technical discussions with our shareholders to ensure that the Bank reflects its owners’ goals and aspirations in both its lending activities and internal operations.
AIIB’s unique ownership and shareholding structures reflect the institution’s regional character and provide members with a greater voice in policy direction and decision-making.
AIIB’s specialized geographic and sectoral mandate will enable it to offer niche skills, focused expertise, and concentrated market knowledge, and its organizational structure, staffing flexibility, and efficient decision-making processes will position it to respond with agility to client demand and emerging needs.
AIIB will leverage and mobilize public and private financing, including from institutional investors, and help clients to enhance project “bankability” by promoting transparency, efficiency, and adherence to accepted standards – including environmental and social standards – thereby reducing risk.
AIIB’s reputation and credibility will depend on the caliber of its staff. Our operations will be lean, clean, and green. That means keeping a check on bureaucracy and maintaining a relatively flat organizational structure; managing costs and using modern technology effectively; and avoiding duplication and overlap of functions. The AIIB will build its professional staff gradually, supplementing in-house expertise with specialized consultant skills. Staff positions will be carefully defined to avoid both underemployment and future redundancies.
The AIIB subscribes to the principles of sustainable development in the identification, preparation, and implementation of projects. The management of environmental and social risks and impacts is central to successful development outcomes. We will support our clients in managing these risks appropriately through knowledge, experience, and resources.
