Research On Several Issues Of Asian Infrastructure Investment Ban

The Asian Infrastructure Investment Bank(AIIB)is an intergovernmental regional multilateral development bank initiated by China in the context of financial crisis and the globalization era.Its aim is through investments in infrastructure and other productive areas,to promote the sustainable economic development of Asian economics,to create wealth and improve infrastructure inter-connectivity,to work closely with other multilateral and bilateral development agencies,and to promote regional cooperation and partnerships to meet development challenges.It has been more than two years since the AIIB opened its business.During this period,the AIIB fully learned from and borrowed from the experiences of traditional multilateral development banks,especially the World Bank and the Asian Development Bank,and effectively completed the construction of rules,regulations,and organizational structure construction.It explored and created a set of governance mechanisms to adapt to the development of the AIIB and adapt to the current world economic situation.Under the support of the core concept of “lean,clean and green”,the relevant cooperation under the AIIB framework has progressed smoothly,showing a good operating state.Overall,the establishment of the AIIB is of great significance to the reform of the international financial governance system,regional economic development and China’s domestic economic restructuring.The article takes the basic research method of international organizations analysis,combines the international political theory of international public goods,rational choice of national policies to systematically discuss the background of the establishment of the AIIB,relations with members,organizational structure,project operations,and the significance of its establishment.The specific chapter content is as follows:The first chapter mainly describes the global,regional and domestic background of the establishment of the AIIB.First of all,for a long time,the defects of Jamaica system and the inadequate governance ability of the traditional international financial mechanism have caused the international economic turmoil.The traditional international financial governance mechanisms could neither make up for the internal defects of the system nor solve the real problems.They are more difficult to play a constructive role in international economic governance.At the same time,the traditional international financial governance mechanism continues to use the“Washington consensus” as its concept,which is difficult to reflect the changes in the current international pattern.Thus,the international financial governance mechanism is in urgent need of reform.Second,under the trend of slowing world economic growth,there are many difficulties in the economic development of Asia.At the same time,with the rapid development of Asian economies,the problem of backward infrastructure has become a serious bottleneck.It has become a bottleneck for the further development of the Asian region,a threat to increase competitiveness,and a stumbling block to poverty reduction.There is a huge infrastructure in infrastructure construction in Asia.The “paradox” between the construction funding gap and the abundant capital stocks urgently requires the establishment of new and effective multilateral financial institutions to promote infrastructure construction in the region,and thereby promote the development of Asian economies.Third,China has long been criticized by western countries as a “free rider country”,rendering “China’s responsibility”.After the financial crisis,China has entered a "new normal" for economic development and is facing tremendous internal and external pressures.It is imperative to carry out a new round of internal reforms and open up to the outside world in order to ensure the sustainable growth of the macro economy.The second chapter mainly analyzes the relationship between AIIB and its members from a legal and political perspective.Since the first batch of 21 intentional founding members signed the "Memorandum for the establishment of the Asian Investment Bank",the size of the AIIB has continued to expand.The size,degree of development,and political structure of these countries participating in the preparation of the sub-batch or joining the AIIB will vary.Legally speaking,the AIIB divides its members into intra-and extra-territorial members,and stipulates the differences between intra-and extra-territorial members.At the same time,the attitude of the AIIB to accepting new members as“inclusive and open”reflects the Chinese traditional spirit of “Be tolerant to diversity,tolerance is a virtue”.From the political point of view,starting from the proposal for the establishment of the AIIB,different types of countries have shown different attitudes toward the AIIB based on geographical location,international relations and development strategies.A large number of developing countries both inside and outside the region have been active in participating in the preparation and joining the AIIB.Many emerging economies or regional powers also hope to increase their position in global economic governance through the AIIB.Western countries,especially theallies of the United States,have not given a positive response,but instead have been watching with a cold eye.This chapter compares the history of the Philippines and the United Kingdom joining the AIIB as a case study and examines the policy considerations of developing and developed countries in the process of joining the AIIB.The third chapter focuses on the comparative analysis of the AIIB’s organizational purpose,organization settings and operating modes.In terms of the organization’s objectives,the AIIB’s focus on infrastructure construction and the promotion of regional financial cooperation aims to complement existing institutions and facilitate the realization of organizational goals.In terms of institutional setup,the AIIB has inherited the “three-tier governance structure” of most international organization councils,board of directors,and management.While drawing lessons from the experience of existing multilateral financial institutions,it has explored and innovated to form a set of governance mechanisms that are suitable for its development to adapt to the current world economic situation.For example,the form of unpaid and non-residential boards are used,the internal institutions are setaccording to the principle of lean and efficient,and the bank employees are recruited according to the principles of openness,transparency,and merit.In the dispute settlement mechanism and supervision mechanism,the AIIB has made preliminary provisions and is still under construction.The best representation of the AIIB as a new multilateral development bank is its voting system.The AIIB has fully absorbed the experience of existing multilateral financial institutions in the voting process,taking into account the principle of efficiency and fairness.In term of share,it takes into consideration the interests of members outside the domain and respects the willingness of countries to subscribe.A stable founding member vote and basic voting rights are set up on the distribution of voting rights,and no veto power is pursued on the voting mechanism.The AIIB also stipulates the financial system and relations with the outside world.The fourth chapter discusses the existing project operation the existing projects of the AIIB and the challenges it faces.The business of the AIIB is mainly centered on the development of infrastructure projects in the region,including energy,infrastructure,compound sectors,telecommunications,transportation,urban construction,and water conservancy.Its main means are independent financing and co-financing.Co-financing also includes the cooperation of other multilateral financial institutions and the PPP model.Its main partners include multilateral organizations such as EBRD,Asian Development Bank,World Bank,and International Finance Corporation,indicating that the AIIB is a new member and partner in the international development field and a participant and maintainer of the international financial order.Given the huge demand for infrastructure financing in Asia and the need for new momentum in the economies of post-financial crises,the AIIB is complementary to existing MDBs rather than competitive.The joint financing project has laid the foundation for a good start to the AIIB,but there is still plenty of room for improvement.The PPP model provides resources and advantages for the AIIB’s project development in terms of capital,talent,technology,management,and risk control,but it also challenges the AIIB’s project operations.In the future,the AIIB will need to continue to improve its business capabilities.The fifth chapter,also the last chapter,mainly focuses on the international influence,regional contributions and the role of the AIIB in its own development.First of all,the “public goods” role of infrastructure constructionrefers to the convenience of interconnection and interchange brought about by infrastructure upgrades.On the other hand,it refers to the stimulating effect of infrastructure construction on economic growth.The establishment of the AIIB is the beginning of the role of China in actively performing the role of a big country under the background of the development of global governance towards “co-governance between the West and the West”.It is a response to the existing international financial institutions’ failure to meet the financing needs of Asian infrastructure.The huge influence of the AIIB will also push forward the reform of the international financial mechanism.Secondly,the establishment of the AIIB is an opportunity and an impetus for the upgrading of infrastructure in Asia and the promotion of regional economic growth.It caters to the needs of regional development and provides new stimulus points for the Asian region that has stagnated after the financial crisis,and also promotes regional integration in Asia,especially in the financial integration process.Finally,the AIIB will assist in the implementation of the “Belt and Road Initiative” and provide investment and financing platforms,dispute resolution platforms,and international coordination platforms for facilities connectivity and financing.The establishment of the Asian Investment Bank is also a sign of China’s rising global economic governance status.It also creates an environment for China to adjust its pace of economic development,release excess production capacity,and enhance its international influence.The conclusion part mainly summarizes and reflects on the research of this article.In particular,it briefly discusses the characteristics of the AIIB study,the deficiencies of this study,and the issues to be studied in the future.