Asian Infrastructure Investment Bank

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    In News 

    • 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.

    Background

    • The vaccines will be purchased by the Government of India through a competitive process and the ADB will be administering the purchasing system and implementing it under ADB’s APVAX, or Asia-Pacific Vaccine Access Facility, mechanism.

    Asian Infrastructure Investment Bank (AIIB)

    • It is a multilateral development bank with a mission to improve social and economic outcomes in Asia.
    • HQ: Beijing, China
    • Members: 57 founding members now which have grown to 97. Fourteen of the G-20 nations are AIIB members including France, Germany, Italy and the United Kingdom. Currently more than 100 members.
    • India is a founding member.
    • Shareholder & voting right: China is the largest shareholder with 26.61 % voting shares in the bank followed by India (7.6%), Russia (6.01%) and Germany (4.2 %).
      • The regional members hold 75% of the total voting power in the Bank.
    • Goals: To foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors.
      • To promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions

    Asian Development Bank (ADB)

    • About: It is a regional development bank established on 19th December 1966. The ADB was modelled closely on the World Bank.
    • Headquarters: Manila, Philippines.
    • Members: 68 members, 49 from within Asia.
    • Voting & shareholding: Japan holds the largest proportion of shares in ADB followed by the USA, because Japan is one of the largest shareholders of the bank, the president has always been Japanese.
      • ADB is an official United Nations Observer.
    • Aim: To promote social and economic development in Asia.
      • It is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.

    Source: PIB