Past Event

A conversation with Jin Liqun, president of AIIB

We were pleased to host Jin Liqun, the president of Asian Infrastructure Investment Bank at Bruegel.

Date: January 22, 2018, 2:00 pm Topic: Banking and capital markets

video & audio recordings


SUMMARY

President of the Asian Infrastructure and Investment Bank Jin Liqun presented his vision for the Asian Infrastructure and Investment Bank and addressed the concerns about it. Specifically, the conversation highlighted the reasons why the AIIB was established, its distinctive features and clarified its relation with its original founding member – China.

The AIIB arose as a response to the growing role of Asia in the world economy, the associated rebalancing of powers and the challenge Asian nations face in becoming more sustainable. With its 84 members, it serves as a multilateral institution with sole goal being the financing of infrastructure projects beneficial to Asia, Jin Liqun said. In the international architecture, it stands out from other development banks with its business model. Indeed, compared to older institutions that have built up some bureaucratic rigidities and suffered from the entrenched influence of member states, the AIIB has been designed from the beginning to remain lean and avoid undue political influence by member countries.

Jin Liqun gave several examples of these design choices. AIIB’s various funds are not country-specific contrary to traditional development banks’ business model. This ensures no member can advance its political agenda through allocating donations on different funds depending on its relations with a certain beneficiary country. Similarly, the AIIB executive team and staff take full responsibility. This addresses the lack of accountability experienced in institutions where nation states are ultimate decision-makers. This greater accountability helps the AIIB deliver on its three strategic objectives: lean, clean, and green. Indeed, without political influence, the AIIB can focus on cost-effectiveness of operations and reduce corruption. The sole mission is therefore to invest in projects that are economically and environmentally sustainable as well as socially accepted. Importantly, the AIIB does not involve itself in the planning process and only intervenes once a country has an infrastructure project shovel-ready. Finally, its plan for being financially self-sufficient is an additional feature that helped the bank obtains AAA ratings from all credit rating agencies.

Nevertheless, one of the main concerns voiced during the conversation was the perceived influence of China over AIIB – the founding member that initiated the idea of such a bank. While Jin Liqun himself is Chinese, three of the five vice-presidents and several heads of department are European. This composition was decided to ensure best practices in international development finance, but it also limits the influence of any single Asian nation. Other measures to limit the incentives to influence the AIIB is preventing foreign labor from building AIIB-funded infrastructure in a given country – as is common in Chinese-funded development projects. Furthermore, even though the Chinese-led One Belt One Road initiative is also focused on developing infrastructure in Eurasia, Jin Liqun re-emphasized several times that it is fundamentally distinct from the AIIB: the Bank is an institution to finance all types of infrastructure projects proposed by members while the One Belt One Road is a platform for cooperation to improve transnational connectivity.

Event Notes by Nicolas Moës, Research Assistant, Bruegel

Schedule

Jan 22, 2018

14:00-14:30

Check in and welcome coffee

14:30-14:40

Welcome remarks

Sven Biscop, Director, Europe in the world, Egmont Royal Institute for International Affairs

14:40-15:00

Speech

Jin Liqun, President, AIIB

15:00-15:30

Conversation and Q&A

Chair: Guntram B. Wolff, Director

Sven Biscop, Director, Europe in the world, Egmont Royal Institute for International Affairs

Jin Liqun, President, AIIB

15:30

End

Speakers

Sven Biscop

Director, Europe in the world, Egmont Royal Institute for International Affairs

Guntram B. Wolff

Director

Jin Liqun

President, AIIB

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

[email protected]

Read about event
 

Past Event

Past Event

Monetary policy in the time of climate change

How does climate change influence monetary policy in the eurozone? What potential monetary policy measures should be taken up to address climate risks?

Speakers: Cornelia Holthausen, Jean Pisani-Ferry and Guntram B. Wolff Topic: Green economy, Macroeconomic policy Date: October 20, 2021
Read about event
 

Past Event

Past Event

A hybrid future of work

Addressing employers’ and employees’ challenges.

Speakers: Julie Brophy, Joost Korte, Laura Nurski, Renske Paans and Alex A. Saliba Topic: Digital economy and innovation, Inclusive growth Date: October 19, 2021
Read about event More on this topic
 

Past Event

Past Event

What is the link between biodiversity loss and financial instability?

Biodiversity loss impacts financial stability. How big is the risk of biodiversity loss for financial institutions?

Speakers: Sylvie Goulard, Romain Svartzman, Guntram B. Wolff and Michael Wilkins Topic: Banking and capital markets Date: October 5, 2021
Read about event More on this topic
 

Past Event

Past Event

How to strike the right balance between the three pillars of the pension system?

In this event panelists will discuss the future of European pension schemes.

Speakers: Elsa Fornero, Svend E. Hougaard Jensen and Suvi-Anne Siimes Topic: Macroeconomic policy Date: September 23, 2021
Read about event More on this topic
 

Past Event

Past Event

Academic lecture: International technology competition

Bruegel Annual Meetings, Day 3 - On the final day of the Annual Meetings, our Director Guntram Wolf sits with Keyu Jin to discuss international competition policy.

Speakers: Keyu Jin, J. Scott Marcus and Guntram B. Wolff Topic: Digital economy and innovation Location: Palais des Académies, Rue Ducale 1, Brussels Date: September 3, 2021
Read about event
 

Past Event

Past Event

Conference on the Future of Europe: envisioning EU citizens engagement

Bruegel Annual Meetings, Day 3 - Panellists will discuss different options and what they may entail while revisiting the debates on the future of Europe at national and EU-level that have been conducted thus far.

Speakers: Caroline de Gruyter, Kalypso Nicolaïdis, Niclas Poitiers and György Szapáry Topic: European governance, Macroeconomic policy Location: Palais des Academies, Rue Ducale 1 Date: September 3, 2021
Read about event
 

Past Event

Past Event

Sustainable finance

Bruegel Annual Meetings, Day 3 - In this session on the final day of the Meetings, our panelists will discuss the future of finance and its sustainability.

Speakers: Maria Demertzis, Alberto De Paoli, Pierre Heilbronn and Alexandra Jour-Schroeder Topic: Banking and capital markets, Green economy Location: Palais des Académies, Rue Ducale 1, Brussels Date: September 3, 2021
Read about event More on this topic
 

Past Event

Past Event

The role of the EU's trade strategy for an inclusive and sustainable recovery

Bruegel Annual Meetings, Day 3 - We are delighted to welcome Valdis Dombrovskis, Executive Vice President of the European Commission for An Economy that Works for People to talk about Europe's trade strategy.

Speakers: Valdis Dombrovskis, Alicia García-Herrero and Guntram B. Wolff Topic: Macroeconomic policy Location: Palais des Academies, Rue Ducale 1 Date: September 3, 2021
Read about event More on this topic
 

Past Event

Past Event

Navigating a more polarised world: policy implications

Bruegel Annual Meetings, Day 2 - Are we entering a new age in the relationship between international economics and global politics? Is Europe well-equipped for this new world?

Speakers: Hélène Rey, Jean Pisani-Ferry, Adam Tooze and Sabine Weyand Topic: Global economy and trade Location: Palais des Academies, Rue Ducale 1 Date: September 2, 2021
Read about event
 

Past Event

Past Event

Blending physical and virtual: shaping the new workplace

Bruegel Annual Meetings, Day 2 - This panel will cover the changes the COVID-19 pandemic made to our workplaces, and what to expect in the near future.

Speakers: Nicholas Bloom, Michael Froman, Mario Mariniello, Sara Matthieu and Luca Visentini Topic: Inclusive growth, Macroeconomic policy Location: Academy Palace Date: September 2, 2021
Read about event
 

Past Event

Past Event

Brave new digital industrial policy

Bruegel Annual Meetings, Day 2 - In this session our speakers will discuss innovation and digitalisation.

Speakers: Francesca Bria, Kerstin Jorna, Aura Salla, Marietje Schaake and Reinhilde Veugelers Topic: Digital economy and innovation, Inclusive growth Location: Palais des Académies, Rue Ducale 1, Brussels Date: September 2, 2021
Read about event More on this topic
 

Past Event

Past Event

Monetary and macroeconomic policies at the crossroads

Bruegel Annual Meetings, Day 2- In this session we would like to discuss monetary and macroeconomic policies after Covid-19.

Speakers: Grégory Claeys, Per Callesen, Gita Gopinath, Jorge Sicilia Serrano and Lawrence H. Summers Topic: Banking and capital markets Location: PALAIS DES ACADEMIES, RUE DUCALE 1 Date: September 2, 2021
Load more posts