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2019.10.31 23:01 GMT+8

AIIB president on protecting the most vulnerable amid economic downturn

Updated 2019.10.31 23:01 GMT+8
Global Business

Global leaders, investors and innovators with power are gathering at the Future Investment Initiative (FII) Summit in Saudi Arabia to discuss the future of global investment.

Jin Liqun, president of the Asian Infrastructure Investment Bank (AIIB), argues that economic slowdown will not necessarily lead to social problems once governments protect the most vulnerable people when growth eases.

"Economic slowdown does not necessarily mean there will be social problems, as long as the government will do everything possible to ease the pain," Jin told CGTN on the sidelines of the FII Summit.

He said protecting the most vulnerable people should be the top priority "because they are disadvantaged, and they experience a lot of hardships."

"It would be very hard for them to cushion against this kind of shock, and of course, international support is crucial,”Jin said.

From his perspective, the AIIB, International Monetary Fund (IMF) and the World Bank play different roles in terms of solving problems and supporting development. 

"The IMF is the right one to help economies with the balance of payment support, and the World Bank can do budget support," he said, explaining that the AIIB, with its mission to improve social and economic outcomes in Asia, pays more attention to long-term infrastructure investments, rather than solving urgent problems.

"The crucial role we can play is that we finance basic infrastructure projects, improve connectivity and regional cooperation, thereby paving the path for long-term development. So, we have a complementary role to play. The IMF and some of the donors help ease the burning issues; we help them to deal with the long-term solutions," he said.

This year's FII Summit focuses on utilizing investment to drive growth opportunities, enable innovation and disruptive technologies, and address global challenges.

Jin told CGTN that the mood at this year's summit is "very good," as there is "enthusiasm" about this summit and the attention paid to so many burning issues faced by the world, especially "when the trade dispute is a problem, Brexit is another problem, and some economies are experiencing economic slowdown.”

He also acknowledged the AIIB's work with the World Bank, revealing that the two both agree on a number of things. "Particularly the cooperation between the World Bank and the AIIB, we both agree it's excellent," Jin said.

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