At least 21 countries, Including Pakistan, have signed a memorandum of understanding at Great People’s Hall in Beijing to set up Asian Infrastructure Development Bank with paid up capital of $50 billion. The establishment of the bank indicates China desire to promote investment at the regional level as well as the nature of its competitive relationship with the United States. The new bank has been looked as a challenge to the World Bank, International Monetary Fund and Asian Development Bank which are dominated by the United States, Japan and European countries. The bank will provide funds for the projects like construction of roads, railways, power plants and telecommunication network which are necessary components for the regional economies. The signatories of the bank also include India, Singapore, Vietnam, the Philippines, Magnolia, Kazakhstan, Kuwait, Laos, Malaysia, Myanmar, Nepal, Amman, Qatar, Sri Lanka, Thailand and Uzbekistan. Japan, Korea and Australia have stayed away from the bank.
It is hoped that the bank will provide a professionally developed and a dynamic platform to ensure distribution ofequitable funds to the member countries and a functional method to regulate the bank. However, the United States and its allies are opposing the move on the ground that the bank will cast negative impact on the world financial institutions, will lower international standards for release of grants as well as will fail to help the nations at the time of crisis.
As the world population is growingby leaps and bounds, especially in Asian countries, there is a need to go a step ahead and inter-connect the regional economies by leaving political and geographical differences aside even for the time being. There is a need to ease visa regime to allow interaction between business communitiesin member states. It will not only promote trade and investment, but also tourism and better understanding of economic, social and political issues faced by the Asian nations. The economy of the European community heavily relies on trade between member states and they have not only eased visa regime, but also have developed a common currency. The Asian countries can also develop a common currency which can become the currency of the world. China can perform as engine of the Asian economies.
