Asian Infrastructure Investment Bank Agreement Act

The Asian Infrastructure Investment Bank can be seen as a natural international expansion of the infrastructure-based economic development framework, which has supported China`s rapid economic growth since the adoption of China`s economic reform under President Deng Xiaoping. It is due to the idea that long-term economic growth can only be achieved through systematic and large-scale investments in infrastructure, in contrast to the shorter-term development models of “export consumption” and “domestic consumption”, which Western neoclassical economists prefer and which are followed by many developing countries in the 1990s and the first decade of the 21st century with generally disappointing results. [38] [39] 1. The Minister responsible for finance may, if he deems it necessary, establish, on behalf of the Sri Lankan government, for the payment of a subscription under Article 6, paragraph 5, paragraph b), of the agreement, debt securities or other non-negotiable and unpaid bonds to be paid on request to the bank and issued to the bank. , in place of Sri Lanka`s currency in such circumstances, in accordance with Article 6 of the agreement. The United Nations cited the introduction of the AIIB as a potential to “strengthen financing for sustainable development”[6] and improve global economic governance. [7] The Bank`s out-of-capital was $100 billion, which is the capital of the Asian Development Bank and about half of the Capital of the World Bank. [8] The Institute of the Asian Development Bank published a report in 2010 that stated that the region needed to invest $8 trillion in infrastructure between 2010 and 2020 to enable the region to continue its economic development. [15] [18] In a 2014 editorial, The Guardian newspaper wrote that the new bank could allow Chinese capital to finance these projects and enable it to play a greater role in the economic development of the region, in line with its growing economic and political influence.

[19] But until March 2015, China has only 5.47 per cent voting in the ADB, while Japan and the United States together have a voting right of 26 per cent (13 per cent each) with a subscribed capital share of 15.7 per cent and 15.6 per cent respectively. The dominance of the two countries and the slow pace of reforms are based on China`s desire to establish the AIIB, while both countries are concerned about China`s growing influence. [20] The statutes form the legal basis of the Bank. 57 potential founding members (PFMs) covered by Schedule A of the agreement can sign and ratify the articles and thus become members of the Bank. Other States Parties to the International Bank for Reconstruction and Development or the Asian Development Bank may become members after the Bank approves their membership. [5] The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank that aims to improve economic and social performance in Asia. [4] The Bank currently has 103 members and 21 potential members from around the world. [1] The Bank began operations after the agreement came into force on 25 December 2015, following the conclusion of ratification agreements concluded by ten Member States, which held a total of 50% of the first subscription of the authorized capital stock.

[5] Given that the Bank is still in its early years, it does not have an environmental record. However, several organizations expressed concern about the proposed bank`s environmental policy because of China`s significant role in the Bank`s activities. Although the proposed bank stated that “AIIB will learn from best practices around the world and adopt international environmental standards,” Yuge Ma, an economist and energy minister at Oxford, argued that this could be complicated in developing countries in Asia. [100] AN ACTE to enable Sri Lanka to become a member of the Asian Infrastructure Investment Bank, which authorizes Sri Lanka`s ratification or adoption of the agreement, to establish the banned bank in Sri Lanka and to deal with related issues.