Challenges and opportunities coexist in AIIB's future
- By Xu Lifan
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E-mail China.org.cn, February 13, 2016
To a certain extent, the best way is to keep the AIIB open to new membership. From the very beginning, it has been opening its door to the United States and Japan despite their hesitation or outright opposition. It reflects the strategic vision of the AIIB. Once an effectively cooperative mode with other multilateral organizations is formed, it can further enlarge its function in improving the international economic governance system.
How to avoid uncontrollable risks
As long as the AIIB operates in accordance with its core vale of being "lean, clean and green," external risks and disputes can be controlled to the lowest level.
The AIIB's capital will possibly face the challenges of traditional and non-traditional security, policy changes caused by the changes of governments or regimes, low governance level, and low awareness of agreements. To deal with the risks, the AIIB must have good response plans.
At the recent Davos Forum, AIIB President Jin Liqun revealed some of the AIIB's "iron rules" to deal with external risks. First, the loan projects to be selected will not involve controversial lands and waters. Second, the AIIB will maintain adequate sensitivity to any changes in the situation of all countries. Third, it will develop a professional project team to avoid excessive fluctuations caused by the changes of governments or regimes. Fourth, it will learn from the experience of the World Bank and the Asian Development Bank in saving energy and reducing emissions.
It will also maintain a prudent attitude towards sensitive projects such as building nuclear power plants in low-income countries.
The "iron rules" will be beneficial to the AIIB in dealing with external risks. It is emerging at a time when the international financial system is entering a period of reform, during which China has changed from being passive to adaptive and now active in the global governance system. Maintaining an open, transparent and cooperative attitude, the AIIB will bring a huge bonus to global economic governance and China's new round of reform and opening-up to the outside world.
Xu Lifan is a commentator on international affairs.
This article was translated by Li Jingrong based on the original unabridged version published in Chinese.
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.
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