The Beijing-backed Asian Infrastructure Investment Bank (AIIB) may not be a physical reality yet, but in the global financial community it has already gained a lot of attention as the ‘new kid in the neighborhood’.
One reason is that AIIB is not your average bank. Also, its formation could be indicative of something else rather significant — changing alliances.
The Voice of America reported that,
“A total of 57 countries will be founding members … throwing together countries as diverse as Iran, Israel, Britain and Laos.”
Why the great recent rush to be a founding member of this new multilateral development bank? RT, a Russian news outlet, pointed out,
“The founding members have a priority over others, as they possess the right to establish the rules for the bank’s activities.”
AIIB’s charter is expected to be signed in June 2015, and the bank is slated to be operational by the year’s end.
Best Friends Not Forever
According to the Financial Times, the United States “lobbied furiously” to dissuade other countries from participating. She allegedly perceived AIIB as a rival to the World Bank and other US led global financial institutions. But news sources remarked that, instead, she has ended up pretty much isolated.
Britain — long considered America’s closest ally overseas — led Europe’s stampede to be an initial part of AIIB.
Read the Financial Times article here (subscription required)
