One of the most contentious points about the Asian Infrastructure Investment Bank is being addressed with the release of the Beijing-based financial institution’s environmental and social safeguards.
But while the move signifies the bank’s intent to comply with international standards and procedures, civil society observers contend that the provisions in the framework and the manner in which it will be implemented are not as stringent as what should be expected from a $100 billion development finance institution.
“We think that AIIB has to have very high standards, if not the highest standards, considering the scale in which they want to operate,” Rayyan Hassan, executive director of Manila-based organization NGO Forum on ADB, told Devex. “A bank that claims to have $100 billion in finance, to not ensure environmental and social protection once it starts operation is absolutely ridiculous.”