{"id":1735,"date":"2024-03-29T14:05:31","date_gmt":"2024-03-29T08:35:31","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1735"},"modified":"2024-04-03T07:14:37","modified_gmt":"2024-04-03T01:44:37","slug":"q-with-reference-to-asian-infrastructure-investment-bank-aiib-consider-the-following-statements","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-with-reference-to-asian-infrastructure-investment-bank-aiib-consider-the-following-statements","title":{"rendered":"Q. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements:"},"content":{"rendered":"\n
    \n
  1. AIIB has more than<\/strong> 80 member nations.<\/li>\n\n\n\n
  2. India is the largest shareholder<\/strong> in AIIB.<\/li>\n\n\n\n
  3. AIIB does not <\/strong>have any members from outside Asia.<\/li>\n<\/ol>\n\n\n\n

    Which of the statements given above is\/are correct?<\/p>\n\n\n\n

      \n
    • 1 only<\/li>\n\n\n\n
    • 2 and 3 only<\/li>\n\n\n\n
    • 1 and 3 only<\/li>\n\n\n\n
    • 1, 2 and 3<\/li>\n<\/ul>\n\n\n\n
      \n

      Answer: (a) 1 only<\/strong><\/p>\n<\/blockquote>\n\n\n\n

      AIIB<\/h5>\n\n\n\n
        \n
      • It is a multilateral development bank<\/strong> with a mission to improve social and economic outcomes in Asia.<\/li>\n\n\n\n
      • It aims to<\/strong> connect people, services and markets that over time will impact the lives of billions and build a better future by investing in sustainable infrastructure and other productive sectors.<\/li>\n\n\n\n
      • It is established by the AIIB Articles of Agreement (entered into force December 2015)<\/strong> which is a multilateral treaty.<\/li>\n\n\n\n
      • It is headquartered in Beijing (China)<\/strong> and began its operations in January 2016.<\/li>\n\n\n\n
      • By the end of 2020, AIIB had 103 approved Members<\/strong> representing approximately 79% of the global population and 65% of global GDP.<\/li>\n\n\n\n
      • By investing in sustainable infrastructure<\/strong> and other productive sectors in Asia and beyond, it will better connect people, services and markets that over time will impact the lives of billions<\/strong> and build a better future.<\/li>\n<\/ul>\n\n\n\n
        Financial Resources of AIIB<\/h6>\n\n\n\n
          \n
        • The AIIB\u2019s initial total capital is USD 100 billion divided into\u00a01 million shares of 100 000 dollars each<\/strong>, with 20% paid-in and 80% callable.\n
            \n
          • Paid-Up Share Capital:<\/strong> It is the amount of money that has already been paid by investors in exchange for shares of stock.<\/li>\n\n\n\n
          • Called-Up Share Capital:<\/strong>\u00a0Some companies may issue shares to investors with the understanding they will be paid at a later date.\n
              \n
            • This allows for more flexible investment terms<\/strong> and may entice investors to contribute more share capital<\/strong> than if they had to provide funds up front.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n
            • China<\/strong> is the largest contributor to the Bank<\/strong>, contributing USD 50 billion<\/strong>, half of the initial subscribed capital.<\/li>\n\n\n\n
            • India<\/strong> is the second-largest shareholder<\/strong>, contributing USD 8.4 billion.<\/strong><\/li>\n<\/ul>\n\n\n\n
              Voting Rights in AIIB<\/h6>\n\n\n\n
                \n
              • China is the largest shareholder with 26.61<\/strong> % voting shares in the bank followed by India (7.6%),<\/strong> Russia (6.01%) and Germany (4.2 %).<\/li>\n\n\n\n
              • The regional members hold 75% of the total voting power in the Bank.<\/li>\n\n\n\n
              • The AIIB has a governance structure similar to other MDBs (multilateral development bank), with two key differences:\n
                  \n
                • it does not have a resident board of executive directors<\/strong> that represents member countries\u2019 interests on a day-to-day basis, and<\/li>\n\n\n\n
                • the AIIB gives more decision making authority to regional countries<\/strong> and the largest shareholder, China.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                  Which of the statements given above is\/are correct? Answer: (a) 1 only AIIB Financial Resources of AIIB Voting Rights in AIIB<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[54],"class_list":["post-1735","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-54"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":54,"label":"2019"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1735"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1735\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1735"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}