Diverging views on the new Asian Infrastructure Investment Bank (AIIB) in the US and Europe

22-04-2015

Infrastructure investments are an important element in international economic cooperation. Besides bilateral agreements, European donor countries often use the institutional platform given by the World Bank or the International Monetary Fund (IMF) to negotiate the terms of financial assistance with recipient countries. However, the dominance of these Western development and investment institutions is challenged by China, which has launched the Asian Infrastructure Investment Bank (AIIB). While the US has taken a critical stance on this Chinese influenced infrastructure bank, some EU Member States have announced that they will support the AIIB.

Infrastructure investments are an important element in international economic cooperation. Besides bilateral agreements, European donor countries often use the institutional platform given by the World Bank or the International Monetary Fund (IMF) to negotiate the terms of financial assistance with recipient countries. However, the dominance of these Western development and investment institutions is challenged by China, which has launched the Asian Infrastructure Investment Bank (AIIB). While the US has taken a critical stance on this Chinese influenced infrastructure bank, some EU Member States have announced that they will support the AIIB.