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Question

Difficulty: MediumInternational Relations, Global Summits, and Multilateral Organizations

Consider the following statements regarding the Asian Infrastructure Investment Bank (AIIB):

1. The headquarters of the Asian Infrastructure Investment Bank is located in Beijing, China.
2. India is the largest shareholder in the bank, holding the highest voting power.
3. Membership in the bank is strictly restricted to sovereign countries belonging to the Asia and Oceania regions.

Which of the statements given above is/are correct?

  1. 1 onlyAnswer
  2. B
    1 and 2 only
  3. C
    2 and 3 only
  4. D
    1, 2 and 3

Answer

Only Statement 1 is correct.
The statement specifying that the headquarters of the Asian Infrastructure Investment Bank is located in Beijing is correct. The remaining statements are incorrect because China holds the highest voting share in the bank, and membership extends beyond Asia-Pacific to include non-regional sovereign nations.

Step-by-Step Solution

1
Evaluate Statement 1 regarding headquarters
Statement 1 is correct.
The Asian Infrastructure Investment Bank (AIIB) commenced operations in 2016 and is headquartered in Beijing, China.
2
Evaluate Statement 2 regarding shareholding and voting power
Statement 2 is incorrect.
China is the largest shareholder in AIIB with approximately 26.6% of the voting power, while India is the second-largest shareholder with approximately 7.6% of the voting power.
3
Evaluate Statement 3 regarding membership scope
Statement 3 is incorrect.
Membership in AIIB is open to members of the International Bank for Reconstruction and Development (IBRD) or the Asian Development Bank (ADB), allowing non-regional members from Europe, Africa, and Latin America to join.

Key Concept

Governance structure, headquarters, and membership provisions of multilateral financial institutions like the Asian Infrastructure Investment Bank (AIIB).
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Topics

International Relations, Global Summits, and Multilateral Organizations