Practicing true multilateralism: AIIB brings certainty to world

Editor's note: Zhou Jianjun is an assistant researcher at the Institute of State System Research and School of Economics of Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity. 

On December 25, 2015, the Asian Infrastructure Investment Bank (AIIB) was officially established. 

As an intergovernmental, multilateral development institution in the Asian region, the AIIB practices genuine multilateralism, promoting connectivity and economic integration in Asia through infrastructure construction. 

By doing so, the AIIB has brought greater certainty to global development while contributing more Asian strength and Chinese wisdom.

AIIB reshapes international multilateral development system, significantly impacting global economic governance model

Developed countries, led by the United States, have always monopolized international financial organizations and held absolute dominance over the international multilateral development framework. 

These developed countries have often leveraged their influence within the international development system to impose unreasonable political and economic demands on developing countries, significantly harming their interests. 

The AIIB, initiated by China, has broken this monopoly and reshaped the international multilateral development system. 

The AIIB follows the principles of fairness, equality and joint participation, ensuring that every member has the right to vote and can fully articulate their interests, genuinely representing the core interests of many developing countries. 

Its establishment has substantially amplified the voice of developing countries in global economic governance.

Focusing on infrastructure investment, AIIB is conducive to advancing infrastructure construction in developing countries

As of December 24, 2024, the AIIB had approved 303 projects, with the approved financing totaling $58.88 billion and committed financing reaching $48.94 billion. 

Infrastructure construction projects funded by the AIIB span various sectors, with 22 percent in energy, 17 percent in transport and 15 percent in multiple sectors. 

For example, Tajikistan's Rogun Hydropower Development Project - Phase 1 has been approved with a funding of $270 million, while India's Mumbai Metro Line 5 has been approved with a funding of $200 million. 

The AIIB has funded numerous high-quality, large-scale infrastructure projects in these countries. 

Developing countries' generally low infrastructure construction levels and severe financial constraints have rendered them unable to fund large-scale infrastructure projects. 

The AIIB's funding has been indispensable in enabling these countries to undertake infrastructure projects. 

As the demand for infrastructure construction in underdeveloped countries continues to grow in the future, the AIIB will play an increasingly vital role in financing these efforts.

AIIB-funded infrastructure projects generate favorable economic and social benefits, driving local economic growth

Funds from the AIIB have filled the gaps in local infrastructure construction and created substantial spillover effects. 

Energy and transport infrastructure funded by the AIIB has dramatically improved local electricity, communications and transportation networks. 

These advantages have empowered local governments to attract investment and carry out economic and trade activities. 

Oman's Broadband Infrastructure Project in 2017, with an approved financing of $152.1 million, has significantly reduced communication network costs for local residents. 

Similarly, the Cote d'Ivoire's Inclusive Connectivity and Rural Infrastructure Project in 2023 received an approved funding of $200 million. 

Attributable to this project, local farmers can transport cashews, cocoa, and other agricultural products they grow to ports for global distribution, generating lucrative economic returns. 

Laos' Monsoon 600 Megawatt Cross-border Wind Power Project in 2022, with an approved financing of $150 million, is producing green electricity in Laos and in the meantime, transmiting electricity to Vietnam via 500 kilovolt transmission lines. 

This cross-border power trade has not only boosted electricity revenues for Laos but also increased Vietnam's power supply to meet the energy demands of factories for production and households for daily living, thereby achieving mutual benefits. 

The AIIB's funding has significantly transformed inadequate infrastructure in local regions, injecting new momentum for economic growth across the vast developing countries.

AIIB-funded infrastructure will change the factor endowments of developing countries and help them ascend the value ladder in global industrial and supply chains

There is a Chinese saying "to get rich, build roads first". China's growth from a poor, underdeveloped agricultural nation into a strong, modern industrial powerhouse has been underpinned by large-scale infrastructure construction. 

The country's growth model of attracting foreign direct investment, facilitating the flow of factor resources and driving industrial transformation and upgrading through infrastructure construction provides valuable insights for less-developed countries.

The AIIB can provide essential support for replicating China's growth model in these countries, facilitating rational allocation and moderate concentration of advantageous resources by funding infrastructure construction. 

This, in turn, will transform local factor endowments, driving a shift in industrial structures from low-end to mid-to-high levels and transitioning exports from primary products to manufactured goods. 

Through this approach, the AIIB empowers developing countries to break free from their constraints at the lower tiers of global industrial and supply chains, enabling them to rise from the bottom of the value chain to middle and upper levels. 

By practicing genuine multilateralism, AIIB offers greater certainty to global development amid growing uncertainties

At present, a backlash against globalization is on the rise, trade barriers and protectionism are rampant and global economic uncertainty is escalating. 

Against this backdrop, China has taken on the responsibilities, practicing multilateralism and remaining committed to high-level opening-up.

The AIIB has grown to 110 members, including 48 regional members, 50 non-regional members and 12 prospective members. 

These members represent 81 percent of the global population and 65 percent of the global GDP. 

In addition to its affiliations with developing nations, the AIIB has actively fostered partnerships with developed countries such as the United Kingdom, France and Germany, channeling funds from developed economies to developing economies. 

The AIIB-funded projects are extending beyond Asia, supporting the vast underdeveloped countries in Africa and Latin America. 

Through infrastructure investment, the AIIB has provided developing economies with new growth drivers and cultivated new poles for global economic expansion. 

In an increasingly uncertain international political and economic landscape, this has brought greater certainty to global development.

(Cover: CFP)