Smog in Beijing. Demotix/Nicola Longobardi. All rights reserved.The new Asian Infrastructure Investment Bank (AIIB) got a credibility boost last month as a number of European countries, including France, Germany, and Switzerland, followed the UK’s lead in indicating that they would sign up as members. Australia and South Korea followed suit, as did other surprise bids including Taiwan. If accepted, they will join the bank’s chief proponent, China, and 29 other countries. According to Chinese media, the AIIB has received 45 applications to join and the final founding members will be confirmed on 15 April.
Increased investment in infrastructure in the countries that stand to benefit from this new international institution is essential for meeting social and economic needs, but only if it benefits communities, rather than harming them. Leaders of these nations need to carefully consider the potential cost of new infrastructure on communities that stand to be displaced, have their livelihoods drastically affected, or may not reap the benefits of such projects.
These governments should stand together and push from the outset for open and transparent processes and environmental and social rules that are the best in the business. They should not ignore the fact that China has a weak record on open and transparent processes or rights-respecting development more broadly.
