By Kalinga Seneviratne* | IDN-InDepthNews Analysis
SINGAPORE (IDN) – Chinese President Xi Jingping officially launched on January 16 the much anticipated Asian Infrastructure Investment Bank (AIIB) describing it as a “historic moment” while his Finance Minister Lou Jiwei said in an interview that the launch of AIIB marked a milestone in the reform of the global economic governance system.
The $100 billion China-initiated bank took just two years to set up after it was initially proposed by President Xi during his visits to Southeast Asian countries in October 2013. In October 2014, representatives from 22 countries, mainly from Asia and including India, and strong U.S. regional allies – Philippines and Singapore – a signed a Memorandum of Understanding (MOU) to establish the AIIB and Beijing was selected to host Bank headquarters.