Question map
Which of the following statements with regard to the proposed Asian Infrastructure Investment Bank is/are correct ? 1. India is one of the founding members of the Bank. 2. The Bank is to be headquartered in Shanghai. Select the correct answer using the code given below :
Explanation
The Asian Infrastructure Investment Bank (AIIB) is a multilateral financial institution established in late 2015 to address infrastructure needs in Asia [1]. Statement 1 is correct as India is one of the 57 founding members of the bank, having signed the Articles of Agreement in June 2015. India is also currently the bank's largest borrower [4]. Statement 2 is incorrect because the AIIB is headquartered in Beijing, China, not Shanghai [1]. The confusion often arises because the New Development Bank (NDB), established by the BRICS nations, is the institution headquartered in Shanghai. The AIIB was proposed by China and officially launched its operations in January 2016 with its inaugural Board of Governors meeting held in Beijing [2].
Sources
- [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.15 Asian Infrastructure and Investment Bank (AIIB) > p. 400
- [4] https://www.congress.gov/crs_external_products/IF/PDF/IF10154/IF10154.16.pdf
- [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB) > p. 532