The Asian Infrastructure Investment Bank (AIIB): A Multilateral Bank Where China Sets the Rules

In the last years, a number of countries decided to join the Asia Infrastructure Investment Bank (AIIB), which has developed into a major player in the global financial architecture in record time. The AIIB promises to be “lean, clean and green.” The truth seems to be that the AIIB is an instrument with the potential to better advance Chinese interests than pursuing a unilateral course.

Korinna Horta's analysis of the situation regarding the respective standards after three years of AIIB in operation is very sobering. What can be done now? Is it time to admit a complete failure and leave the Bank? What influence do shareholders still exert, and what should they press for?

In the last years, a number of countries who pride themselves in their commitment to democracy and human rights – among them Germany – decided to join the Asia Infrastructure Investment Bank (AIIB), which has developed into a major player in the global financial architecture in record time. The AIIB promises to be “lean, clean and green.” The truth is that the AIIB will only be faster in approving their loans and not meddle in their internal affairs by talking about good public governance, mandatory standards and accountability. With the establishment of the AIIB, China has created an instrument with the potential to better advance Chinese interests than pursuing a unilateral course. But the infrastructure we build today decisively shapes our lives tomorrow. A public infrastructure bank must live up to the highest standards regarding the environment, human rights and governance.

Korinna Horta's analysis of the situation regarding the respective standards after three years of AIIB in operation is very sobering. What can be done now? Is it time to admit a complete failure and leave the Bank? What influence do shareholders still exert, and what should they press for?