The Government of India has applied for loans from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to procure as many as 667 million doses of COVID-19 vaccines
Asian Infrastructure Investment Bank
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, it began operations in January 2016 and has now grown to 102 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, it aims to better connect people, services and markets that over time will impact the lives of billions and build a better future.The Asian Infrastructure Investment Bank (AIIB) is an international financial institution proposed by China. The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia-Pacific region.
The bank was proposed by China in 2013 and the initiative was launched at a ceremony in Beijing in October 2014.It received the highest credit ratings from the three biggest rating agencies in the world, and is seen as a potential rival to the World Bank and IMF.
The starting capital of the bank was $100 billion, equivalent to 2⁄3 of the capital of
the Asian Development Bank and about one third that of the World Bank.
Voting Share in AIIB:
- The Authorized Capital Stock of the bank is 100 billion US Dollars, divided into 1 million shares of 100 000 dollars each.
- Twenty percent are paid-in shares (and thus have to be transferred to the bank), and 80% are callable shares.
- The allocated shares are based on the size of each member country’s economy (calculated using GDP Nominal (60%) and GDP PPP (40%)), whether they are an Asian or Non-Asian Member, and the number of shares determines the fraction of authorized capital in the bank.
Of the prospective founding members, three states decided not to subscribe to all allocated shares: Malaysia, Portugal and Singapore, resulting in 98% of available shares to be subscribed.
Three categories of votes exist: basic votes, share votes and Founding Member votes. The basic votes are equal for all members and constitute 12% of the total votes, while the share votes are equal to the number of shares. Each Founding Member furthermore gets 600 votes. An overview of the shares, assuming when all 57 Prospective Founding Members have become Founding Members is shown below (values in bold do not depend on the number of members
The China-led Asian Infrastructure Investment Bank (AIIB) has officially approved 57 nations as prospective founding members, with Sweden, Israel, South Africa, Azerbaijan, Iceland, Portugal and Poland the latest to be included.
Countries accepted as AIIB founding members include China, India, Malaysia, Indonesia, Singapore, Saudi Arabia, Brunei, Myanmar, the Philippines, Pakistan, Britain, Australia, Brazil, France, Germany and Spain.
Founding members have priority over nations that sign up later because they will have the right to set the rules for the bank.
About ADB
The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty in the region. Despite the region’s many successes, it remains home to a large share of the world’s poor: 330 million living on less than $1.90 a day and 1.24 billion on less than $3.20 a day.
ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
ADB maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources through cofinancing operations that tap official, commercial, and export credit sources.
Established in 1966, it is owned by 68 members—49 from the Asia and Pacific region.India was a founding member of the Asian Development Bank (ADB) in 1966 and is now the bank’s fourth largest shareholderand top borrower.
It’s headquarters are in Manila,Philippines.
India has about 6% voting rights (4th highest; Japan highest, USA 2nd highest