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AIIB to benefit Asia and beyond

Updated: 2015-12-28 09:10
By Jin Liqun (China Daily)

Moreover, the AIIB's specialized geographic and sectoral mandate will enable it to offer niche skills, focused expertise and concentrated market knowledge, and its organizational structure, staffing flexibility and efficient decision-making processes will position it to respond with agility to client demand and emerging needs. Our approach to research will be selective and strategic, and our results-focused business model will allow us to deliver state-of-the-art knowledge and tailored financial services.

The AIIB will play a catalytic role. We will leverage and mobilize public and private financing, including from institutional investors, and help clients to enhance project "bankability" by promoting transparency, efficiency and adherence to accepted standards - including environmental and social standards - thereby reducing risk.

The bank's integrated organizational design and governance will ensure efficient and effective operations in alignment with its strategic goals and organizational values. Its non-resident board will promote accountability, efficiency and cost effectiveness, while playing an enhanced role in setting strategy, establishing policy, and exercising oversight.

Ultimately, the AIIB's reputation and credibility will depend on the caliber of its staff. We will recruit the best talent on the market through merit-based competitive processes, without regard to a candidate's nationality. Likewise, there will be no nationality restriction on procurement of goods and services for AIIB-financed operations.

Our operations will be lean, clean and green. That means keeping a check on bureaucracy and maintaining a relatively flat organizational structure; managing costs and using modern technology effectively; and avoiding duplication and overlap of functions. The AIIB will build its professional staff gradually, supplementing in-house expertise with specialized consultant skills. Staff positions will be carefully defined to avoid both underemployment and future redundancies.

It also means fostering an institutional culture based on professional integrity and exemplary governance, with no tolerance for corruption. The best policies on paper are meaningless unless they are implemented rigorously, impartially and transparently.

Finally, it means concern for sustainability. The AIIB subscribes to the principles of sustainable development in the identification, preparation and implementation of projects. The management of environmental, and social risks and impacts is central to successful development outcomes.

The AIIB is an institution of great promise in a region with great needs. As it opens its doors for business in 2016, I am fully confident that it will realize its potential, meeting - and striving to exceed - the goals and standards set by its shareholders.

The author is president-designate of the Asian Infrastructure Investment Bank.

Project Syndicate

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