Does China have what it takes to lead the AIIB?
After drawing global players to the Asian Infrastructure Investment Bank, Beijing must now show how it will manage the institution
Popular support for the China-initiated Asian Infrastructure Investment Bank (AIIB) from nations across the world can be seen as a global "vote of confidence" in Beijing. But this endorsement by 57 major nations does not automatically translate into confidence in China's ability to manage the bank.
By the April 1 deadline, more than a quarter of the world's sovereign states had given their backing to Beijing's new kid on the block, widely seen as a competitor to American-dominated establishments such as the International Monetary Fund and World Bank.
Those who would go on to officially become founding members of the bank on April 15 included 16 of the G20 economies, all five of the world's largest developing economies, all 10 Asean members, and even staunch US allies in Europe such as Britain, Germany, France and Italy.
With such a wide and varied team of backers, China faces a new task: outlining how it intends to lead them.
How will Beijing deal with pressure to ensure the bank meets international standards? How will it behave in a multilateral institution? Can it be an effective negotiator, capable of achieving consensus among partner nations, despite their huge variations in economic development and political orientation? Can it show it is a responsible global player?
Louis Kuijs, chief economist for greater China at Royal Bank of Scotland, said China would want to continue taking the lead in the AIIB as it had a strong incentive to make it a success.
