- India has received invitation from China to participate in Asian Infrastructure Investment Bank (AIIB)
- Purpose of the event is to become free from the influence of western-backed lenders such as the World Bank and the Asian Development Bank (ADB)
- China is clear that they will not tie the lending from the investment bank to non-economic issues, such as human rights, which western-backed lenders have often leveraged as instruments of political influence and control
- India is yet to decide on Beijing’s offer as there are geopolitical implications in the offer, while doubt is that doubt that Beijing now views India as a potential partner in an interlocking politico-economic network of neighbouring countries
- Shanghai Cooperation Organisation (SCO) is a group led by China and Russia which will be a great mileage if India opens its doors to Chinese investments
- India, along with Pakistan and Iran, has observer status in the SCO whose role would be central in defining the balance of economic and political power in Eurasia
- Due to the geopolitical connections in Libya, Syria and Ukraine, China and Russia $400-billion gas pipeline deal has been signed
- India could be a part of this expanding arrangement, for visiting Russian Deputy Prime Minister Dmitri Rogozin said in New Delhi earlier this month that the extension of this pipeline to India would be “one of the largest infrastructure projects that could be conceived
- China’s bold push towards AIIB participation has received appreciation by wealthy monarchies of West Asia
- ADB, which runs on a capital of $165 billion and is dominated by Japan and the United States however AIIB has a registered capital of $100 billion to begin with
- According to a study Asia requires an annual funding of $800 billion till 2020 for developing infrastructure, while China can operate without any hindrance to exercise its soft power in its neighbourhood
- Read at: http://www.thehindu.com/todays-paper/tp-national/china-invites-india-to-join-asian-infrastructure-investment-bank/article6161311.ece
Exams Perspective:
- Asian Infrastructure Investment Bank (AIIB)
- Shanghai Cooperation Organisation (SCO)
- World Bank
- Asian Development Bank (ADB)