AIIB President Jin Liqun speaks to CNA as decade-long tenure draws to close

Key Concepts

• Asian Infrastructure Investment Bank (AIIB)
• Infrastructure financing gap
• Connectivity (within Asia and between Asia and other regions)
• Climate change
• Green economy/energy
• Renewable energy
• Digital infrastructure
• Artificial Intelligence (AI)
• Digital divide
• Emerging market economies/developing countries
• Data centers
• Cloud power grids
• Education and health sectors
• COVID-19 pandemic
• Lending instruments/modality

AIIB's Second Decade and Future Priorities

The Asian Infrastructure Investment Bank (AIIB) is entering its second decade next year, and according to its outgoing founding president, Jin Liqun, exploring new areas of financing will be crucial. Speaking from the AIIB's Beijing headquarters, he outlined the bank's priorities as Asia faces an infrastructure financing gap projected to exceed $26 trillion USD by 2030.

Focus on Asia and Global Connectivity

The AIIB's primary focus remains on Asia, but it recognizes the necessity of working with the rest of the world. "We focus on Asia, the week beyond Asia. Because we believe Asia cannot sustain itself without working with the rest of the world," Jin stated. The bank highlights infrastructure projects that enhance connectivity, both within Asia and between Asia and other regions.

Addressing Climate Change and Promoting Green Initiatives

A significant global challenge identified is climate change, evidenced by devastating natural disasters like flooding and drought. To combat this, the AIIB emphasizes the need for collaborative efforts to promote a green economy and green energy. While acknowledging the importance of securities, the bank believes the most effective way to meet energy supply shortages is by focusing on renewable energy.

Exploring New Financing Areas: Digital Infrastructure and AI

Looking ahead to 2035, Jin believes the AIIB needs to explore new financing avenues. This includes digital infrastructure, particularly in light of AI advancements. The bank aims to assist countries in developing their digital infrastructure to reduce the digital divide, especially in emerging market and developing economies. Jin stressed the importance of AI investment, stating, "If a country does not invest in AI, they would be trailing way behind other countries in the future."

The AIIB's role extends beyond simply increasing financial resources; it involves more creative approaches. The bank seeks to help countries leverage AI technology to boost their economies. This does not necessitate a massive allocation of resources (e.g., 50-60%), but rather a balanced approach tailored to each country's specific situation. The goal is to determine the most effective strategies for developing digital infrastructure and a digital economy.

Supporting Data Centers and Cloud Infrastructure

As part of its efforts, the AIIB is assisting countries in developing data centers, which are critically important. An example provided is the construction of a data center in Malaysia, which consumes significant electricity and can benefit neighboring Asian countries. The bank also aims to help other countries build cloud power grids. AI is seen as a pervasive technology that can improve the efficiency of both traditional and new economies.

Investing in Education and Health

Beyond economic infrastructure, the AIIB recognizes the importance of the education and health sectors. The COVID-19 pandemic had a severe impact on economies and health systems globally. Jin stated, "The pandemic would come back. Should we stand ready to do without education is a much simply the norm or education." The bank is considering how to provide education to the younger generation to better equip them for the AI era.

Adapting Lending Modalities and Achievements

Jin acknowledged that these are complex development challenges, but the AIIB must adapt its lending instruments and modalities to changing situations. Reflecting on the bank's upcoming 10th anniversary, he identified the coordination of global development efforts as a significant achievement. He expressed confidence in the bank's future, stating, "I'm nothing which would away commute tonight because, you know, when I stepped down on 15th January next year, the bank would be in good hands." He highlighted the capable president-elect, who has extensive experience working with institutions like the World Bank, and the experienced management team as reasons for his optimism.

Conclusion

The AIIB is poised to enter its second decade with a strategic focus on expanding infrastructure financing, particularly in digital and green sectors, to address Asia's significant financing gap and global challenges like climate change. The bank aims to leverage AI technology to boost economies and is committed to adapting its approaches to support developing countries in building resilient digital economies, while also prioritizing education and health. The outgoing president expressed strong confidence in the bank's leadership and future trajectory.