RISE OF A NEW BANK TO ASSIST ASIAN NATIONS
Most of the Asian nations like India and China encouraged setting up of the Asian Infrastructure Investment Bank (AIIB) and it was endorsed by many nations in Asia. It is considered a follow up done by some nations to set up the BRICS Bank. BRICS represents the group of Brazil, Russia, India, China and South Africa. These nations are at various stages of development starting from the basic level to the highest level of development.
The principle and the need which led them to the setting up of the own banking institutions are the same. China and India are the pillars of Asia, and both nations encouraged the setting up of AIIB. Due to this reason, it received huge endorsement from various nations of Asia. Most of the nations like Japan and South Korea have not become member of this group. This is because of the fact that USA is not happy with the proposal and wants some changed to be done.
The AIIB like the BRICS Bank is designed to meet the needs of the developing nations in Asia, served at present by World Bank and the Asian Development Bank (ADB) and the IMF. These institutions came up after the World War II were mainly established to help the nations facing financial crisis after the World War II. Most of the banks dance to the tunes of western nation and do not understand the needs of the developing nations.
During the recession which hit major industries in the year 2009, the promise to change their structure of governance, attitude and the policies has not been fulfilled. The AIIB is set up with the initial financial reserve of approx 50 Billion, and was set up to fullfil the financial needs of the infrastructure development in member nations of Asia. There are fears that the AIIB will be dominated by China just like the way other institutions are controlled by Western nations. Most of the nations need to improve the infrastructure to make life easy for them.