Jakarta (Antara Bali) -- The World Bank expects the establishment of the Asian Infrastructure Investment Bank (AIIB), which was a Chinese initiative, to be able to resolve infrastructure-related issues to alleviate poverty and reduce inequality.
"We consider AIIB an important new partner with which we can share the common goal of ending extreme poverty," President of the World Bank Group Jim Yong Kim said in a statement received by Antara here on Monday.
Kim welcomed the establishment of AIIB. The World Bank is ready to collaborate with it to address financing issues faced by infrastructure projects, which are an important instrument to end poverty, reduce inequality, and encourage common welfare.
"Additional funding for infrastructural growth will help the have-nots, and we are very pleased to be working with China and other countries to help AIIB come into operation soon," he remarked.
Kim also pointed out that investment needs for infrastructure facilities in developing countries are too high to be borne by a single institution. Also, the world spends some US$1 trillion annually on these projects, with most of the amount injected into advanced countries.
"Developing countries and low-income communities face a yearly deficit of US$1 to US$ 1.5 trillion in infrastructure spending. With environmental standards as well as good labor and procurement, AIIB can work with us and other development banks," Kim affirmed.
As many as 57 countries, including Indonesia, signed the article of agreement on the establishment of AIIB in Beijing, China. The bank will invest US$672.1 million over five years.
AIIB is a multilateral development bank that is designed to provide financial support for infrastructural development in the Asian region for both government and private institutions.
The initiative to establish the financial institution was proposed by President of the People's Republic of China Xi Jinping at the Asia-Pacific Economic Cooperation summit in Bali, Indonesia, on October 2, 2013.
AIIB's capital is projected to reach US$100 billion in cash with paid-up capital amounting to 20 percent. (WDY)
COPYRIGHT © ANTARA News Bali 2015
"We consider AIIB an important new partner with which we can share the common goal of ending extreme poverty," President of the World Bank Group Jim Yong Kim said in a statement received by Antara here on Monday.
Kim welcomed the establishment of AIIB. The World Bank is ready to collaborate with it to address financing issues faced by infrastructure projects, which are an important instrument to end poverty, reduce inequality, and encourage common welfare.
"Additional funding for infrastructural growth will help the have-nots, and we are very pleased to be working with China and other countries to help AIIB come into operation soon," he remarked.
Kim also pointed out that investment needs for infrastructure facilities in developing countries are too high to be borne by a single institution. Also, the world spends some US$1 trillion annually on these projects, with most of the amount injected into advanced countries.
"Developing countries and low-income communities face a yearly deficit of US$1 to US$ 1.5 trillion in infrastructure spending. With environmental standards as well as good labor and procurement, AIIB can work with us and other development banks," Kim affirmed.
As many as 57 countries, including Indonesia, signed the article of agreement on the establishment of AIIB in Beijing, China. The bank will invest US$672.1 million over five years.
AIIB is a multilateral development bank that is designed to provide financial support for infrastructural development in the Asian region for both government and private institutions.
The initiative to establish the financial institution was proposed by President of the People's Republic of China Xi Jinping at the Asia-Pacific Economic Cooperation summit in Bali, Indonesia, on October 2, 2013.
AIIB's capital is projected to reach US$100 billion in cash with paid-up capital amounting to 20 percent. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2015