2. financial institutions operating on an international level.
Role of Big financial development institutions.
World Bank, International Monetary Fund (IMF), Asian Development
Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) among
others are known as international financial institutions. (And yes,
AIIB is one of the newest such institutions)
3. multilateral development bank.
It was set up on 24th October, 2014. On that date, 21 Asian
countries became the founder members.
majority stake.
4. ADB AIIB World Bank
Establishment 1966
Manila, Philippines
End of 2015
Beijing, China
1944
Washington D.C,
USA
No. of members 67 57 (Adding more)
(37 are from Asia)
188
Goal Free Asia-Pacific from
poverty
Development of infra and
other productive sectors
in Asia
End extreme poverty by
reducing the percentage of
people living on less than
$1.25 per day to not more
than 3%
Authorized Capital $163 billion $100 billion $278 billion
Largest Shareholder 15.7% - Japan
15.6% - US
6.5% - China
6.4% - India
5.8% - Australia
30.85% - China
10.4% - India
Followed by Russia
15.02% - USA
8.13% - Japan
5.25% - China
4.56% - Germany
4.06% - France
4.06% - UK
7. China is the world’s second.
China was frustrated with its small representation in IMF,
World Bank and other Bretton woods-era .
U.S. considering reforms for World Bank and IMF that would
give China greater representation.
Adoption of policy by Prime Minister of Japan, Shinzo Abe .
8. China intension behind AIIB.
characteristics the currency that make it useful in international
trade.
If a nation wants to provide the reserve currency.
9. 1870 – U.S. became the world’s largest economy
1944 – Dollar became the reserve currency
It took 75 years before the U.S. Dollar could become the
reserve currency and it could be accepted by the other
nations.
China can become the largest economy but it will take time
for it to be accepted as the reserve currency country.
If the nations are going to use the reserve currency.
10. U.S. oppose AIIB.
Western power to join AIIB.
British decision to join AIIB.
U.S. look weak.
suspicions of China.
11. significant impact on energy.
India 5th largest coal reserves.
India to electrify the rural.