Three new states join the AIIB, the anti-World Bank. It now covers 65% of global GDP
Solomon Islands has joined the China-backed Asian International Investment Bank (AIIB) just days after its leader snubbed an invitation to meet US President Joe Biden at the Pacific Summit.
The Solomon Islands joins the bank along with the Central American nation of El Salvador, which deepened its relationship with Beijing just years after leaving Taipei in international relations
Tanzania, another key ally of Beijing and where China has extensive interests, has also been admitted as a potential candidate member.
The new admissions to the AIIB push the total number of countries that have joined to 109. While the majority are present in Asia, the bank also has members outside the region, such as Great Britain, France and dozens of African countries, including Algeria , Ethiopia, Rwanda and Egypt.
The AIIB's board of directors approved the applications during the bank's eighth annual meeting in the Egyptian city of Sharm el-Sheikh on Tuesday — its first annual in-person gathering since 2019.
This was stated by AIIB President and Chairman of the Board of Directors Jin Liqun. Members now “collectively represent 81% of the total.” of the world population and represent 65% of global gross domestic product."
“The addition of El Salvador, Solomon Islands and Tanzania strengthens and supports the AIIB community in our collective mission to finance infrastructure for tomorrow,” said Jin.
“Together we will work on priority projects within our clearly defined thematic priorities to drive long-term sustainable growth.”
The three potential members will officially join the AIIB once they complete the required national processes and deposit the first installment of capital in the bank.
He said the growth in membership to 109 demonstrated “that many believe in our mission to achieve sustainable infrastructure development and economic growth, as well as our commitment to actively support infrastructure projects that contribute to climate change mitigation, adaptation and resilience”.
China holds a 30% stake in the bank which began operations in 2016 as a Chinese brainchild of President Xi Jinping. It has been billed as Asia's answer to the World Bank in providing investment services to member states.
According to international analyst Aly-Khan Satchu, the Solomon Islands had moved decisively towards the East, with Honiara recently describing developing cooperation with China as “less restrictive, more responsive and aligned with our national needs”. The Islands are trying to make the most of their relationship with China and Beijing's desire to counterbalance US power in the Pacific.
Solomon Islands Prime Minister Manasseh Sogavare signaled that change when he refused to attend a summit of Pacific nations at the White House on Monday and Tuesday, a snub to Washington, supported by China.
Its tuesday. Moreover, the import-export trade links between Beijing and the Solomons are increasingly close and profitable.
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The article Three new states join the AIIB, the anti-World Bank. Now covering 65% of global GDP comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/tre-nuovi-stati-entrano-nella-aiib-lanti-banca-mondiale-ora-copre-il-65-del-pil-mondiale/ on Thu, 28 Sep 2023 06:30:16 +0000.