Inclusive AIIB can make a difference

II. The AIIB will continue to pursue an open, inclusive and multilateral approach.

Ever since the AIIB was initiated, preparation work has been progressing steadily and solidly, thanks to the strong support from all stakeholders.

Firstly, a participatory approach in line with the principle of "open regionalism". An open and inclusive approach has been followed through the process, and all interested countries are welcomed to join the bank, following the principle of "regional first and non-regional later". In October 2014, in Beijing, the first batch of 22 regional Prospective Founding Members signed the Memorandum of Understanding on Establishing the AIIB (the MOU hereafter). Since then, the AIIB membership has expanded rapidly through multilateral approach, as agreed by existing members. As of mid-April 2015, the number of AIIB Prospective Founding Members had added up to 57 countries, spanning five continents from Asia, Oceania, Europe, Latin America to Africa, hence the AIIB has achieved wide representation on a global scope.

Secondly, advancing the multilateral process. After the MOU was signed, the 22 existing members reached an agreement on the preparation process and the working mechanism on establishing the AIIB. At the heart of the mechanism is the Chief Negotiators' Meeting at the Finance Deputies' level, which serves as the primary platform responsible for negotiating the Articles of Agreement. The Multilateral Interim Secretariat (the Secretariat hereafter) was established to provide technical support and services to the Chief Negotiators' Meeting. It has been agreed that decisions associated with AIIB establishment would be made multilaterally by consensus where possible, otherwise by a 75% majority of existing members. Prospective Founding Members are welcome to nominate qualified secondees to work at the Secretariat. Meanwhile, professional consultants are recruited from the market, with a view to enhancing the professionalism of the Secretariat, and make it better equipped to provide quality technical support.

Thirdly, concluding the Articles of Agreement negotiations in a democratic and efficient way. The Articles of Agreement underpins the fundamental principles for the establishment and future operations of the AIIB. Upon the signing of the MOU last October, negotiations on the Articles of Agreement entered into substantive phase. As the negotiations involved the obligations and interests of various parties, plus the fact that it went in parallel with admitting new Prospective Founding Members, the process was difficult and complex. An open, inclusive, transparent and democratic approach has been adopted and the concerns and aspirations of all the Prospective Founding Members have been taken into account with due respect. In that spirit, Chief Negotiators' Meetings have been co-chaired by China and other Prospective Founding Members who volunteered to host, including India, Kazakhstan and Singapore, and the negotiation process has been accelerated through a multilateral approach acceptable to all founding members. Credit must go to all Prospective Founding Members for their concerted efforts and strong support along the way, making it possible to advance the Articles of Agreement negotiation process efficiently. Within just six months, important consensus was reached covering all key elements of the AIIB, such as its purpose, membership, capital subscription, voting powers, operations, governance structure, and decision-making rules. A high quality Articles of Agreement laid a solid legal basis for the official establishment and early operation of the Bank.