Introduction: Asian Infrastructure Investment Bank
With 57 founding members and $50 billion in initial capital, the Asian Infrastructure Investment Bank (AIIB) is off to a fantastic start. The bank, led by China, has 57 founding members, which make up over a quarter of the world’s countries, including most major economies. The bank has become a major economic and political story, highlighting the tensions between the United States and China in the global economy.
The AIIB is looking to help fix the infrastructure gap in Asia, where estimates place the investment gap at over $700 billion a year. The bank’s plan is to target large scale infrastructure projects, such as power plants and airports, which have largely been neglected by other investment banks. Officials in many Asian countries are excited at the prospects of the new projects, hoping the better infrastructure can entice more businesses to open their doors in the region.
Improving infrastructure is critical for developing countries as they try to make economic progress. Without the necessary roads, bridges, ports, and energy sources, low-income countries will have a difficult time competing for business and investment compared to highly developed economies. Many Asian countries are in need of critical infrastructure improvements, and if the AIIB can help address these needs, the entire Asian region could see significant economic gains.
The AIIB has the potential to not only change the economic landscape in Asia, but also increase China’s influence around the world. For more information on the AIIB, check out the globalEDGE blog and our featured resources!
Featured Resources
The Asian Infrastructure Investment Bank (AIIB)
The Asian Infrastructure Investment Bank (AIIB) is an international financial institution proposed by the government of China. The purpose of the multilateral development bank is to provide finance for infrastructure projects in Asia. This website is the official site of the AIIB and it provides general information about the organization, such as member countries and latest news.
Categories: Finance
Asian Development Bank (ADB)
The Asian Development Bank (ADB) aims to improve the welfare of the citizens of Asia, particularly the many residents that live on extremely low incomes by providing loans, grants, technical assistance, and policy dialogue. This site provides information and resources on business opportunities, co-financing, employment opportunities, consulting, economic research, scholarships and more for interested parties in Asia. The site also offers a number of publications and podcasts as well as country profiles and other valuable information.
Categories: Finance
Featured Academy
International Monetary Systems
The International Monetary Systems module provides information concerning: the history of the International Monetary System; the importance of the International Monetary Fund and World Bank, including their basic purposes and functions; what money markets and international money markets are; what international capital markets are and their function in both developing and high-income countries; international security markets; and the basics of the European Monetary System. A case study on Argentina’s recent economic crisis is also available.
Doing Business in China
The China module should provide one with a general understanding of the following: China’s market potential and hot industries; its culture and people; common situations that arise when conducting business in China; current obstacles and opportunities in logistics; the historical and current problems faced by the economy; and economic and political factors that affect the costs of doing business in China. A case study focusing on China’s rural dilemma is incorporated into this module.
globalEDGE Business Beat
globalEDGE Business Beat: Niel Morgan
Tomas Hult speaks with Neil Morgan, PetSmart, Inc. Distinguished Professor in Marketing Chair, Kelley School of Business, Indiana University. They discuss international marketing strategy, exporting, and how companies can become more competitive in the global marketplace. Marketing capabilities are uniquely important to nurture to be successful. Dr. Morgan is one of the most accomplished scholars in marketing strategy in the last decade.
