Finance: China on right path

In recent weeks, China’s grand plan to launch the Asian Infrastructure Investment Bank (AIIB) has captured global attention. The $100 billion (Sh9.3 trillion) multinational financial institution was conceptualised by Chinese President Xi Jinping and launched towards the end of last year.

China has been a leading country in the area of infrastructure for many years. The AIIB takes full advantage of Chinese experiences and its strong funding background to benefit the Asian region and investors. And because it will complement existing multilateral development institutions, this open and inclusive bank will benefit the world’s countries.

The United States has been rallying its allies not to consider shareholding in the new lender. But in a turn of events that is being considered a diplomatic blunder and embarrassment for the US, its allies have dismissed the US’ calls, with a number of them signing up to be founding members of the bank. These include UK, Germany, France and Australia, which signed up this month.

Kenya and Africa in general are working very hard in the field of infrastructure. They were previously chided by some western countries for looking East, but they now enjoy tremendous support from China, including technology transfer and funding.

It is believed that once much-needed infrastructure is in place, economic and social development programmes can progress in a faster manner.