Skip to main content

Beijing-backed, India-supported infra bank lacks compliance mechanism, "rue" Andhra farmers

An anti-AIIB protest
By Our Representative
Even as the People’s Convention on Infrastructure Financing is all to set to meet in Mumbai on June 21-22, ahead of the Asian Infrastructure Investment Bank’s (AIIB’s) annual meeting on June 25-26 in Mumbai, one of the civil society networks has said that the new bank has no mechanism to address grievances of the those threatened the massive infrastructure projects it seeks to fund in India.
In a communique, issued on June 20, the National Alliance of People’s Movements (NAPM) regrets, “AIIB currently goes by the policies of the co-funders like World Bank and Asian Development Bank (ADB) in the absence of a policy of its own”, yet, it has no mechanism where farmers could complain. Following China, India is the second largest investor in AIIB, which has in all 86 approved member countries.
Thus, says NAPM in an email alert sent to Counterview, “Farmers affected by the land pooling scheme of Amaravati Sustainable Capital City Development project in Andhra Pradesh have raised questions on AIIB and World Bank co-funded project and had to take up their grievances with the compliant mechanism of the World Bank, the co-financier of the project, in the absence of compliance mechanisms and policies of that of AIIB.”
Says NAPM, networks with tens well-known civil rights organizations, “AIIB has a co-financing model which serves AIIB well, particularly if other institutions, such as the World Bank and Asian Development Bank, do not charge the AIIB all the costs they incur for due diligence and oversight. With low-cost co-financing fees, the AIIB can make significant profits since its own loan charges can easily cover its low administrative expenses.”
Notes NAPM, “Other institutions, with their full suite of safeguard policies, protect the AIIB from reputational risks associated with infrastructure projects”, giving the example of how two of AIIB-funded projects, one being the Transmission System Strengthening Project, which it is co-financing with ADB, and the other being Amaravati as the future capital of Andhra Pradesh, funded along with World Bank, leaves AIIB absolved of any obligations.”
A civil society meet in Andhra Pradesh on the state's future capital Amravati
According to NAPM, “Policies related with due diligence applicable are the responsibility of the lead financier, and there is no clarity on the role and liability of AIIB”, adding, “Concerns have also been raised regarding AIIB’s proposed investment in the National Investment and Infrastructure Fund (NIIF) as a financial intermediary. which will further reduce the transparency of how this money will be spent in high-risk investments without taking proper accountability.”
NAPM says, the Mumbai convention will see various Indian groups joining their counterparts from across the world in raising questions “on the energy policy as well as their concerns about shifting decision making power in approving projects from the executive board, which is accountable to constituent governments, to that of the bank management.”
AIIB’s lack of concern for complainants has come about, says NAPM, at a time when a consensus has emerged among “international finance Institutions (IFIs) that infrastructure constitutes a primary element for pushing growth.” It adds, “The IFIs have been perpetuating the assumption of a huge infrastructural gap in emerging countries. Such gaps could only be filled by diluting regulatory mechanisms that govern labour markets, environmental safeguards and land acquisition laws.”
Pointing out that the “IFIs perceive such dilutions to improve investment climes and help improve ‘ease of doing business’ rankings”, NAPM adds, “Besides institutional and regulatory issues, lack of finance is often viewed as a major reason for the slow pace of infrastructure development in most of the developing and Less Developed Countries.”
AIIB’s lack of concern has come about also at a time when, says NAPM, while “global infra investment needs are projected at about 4% of global GDP, for India, this is a huge 9% of its GDP”, adding, “These huge estimates are served to propagate the need for development finance, particularly private finance for which nations will have to create the investment climate through deregulation and ease of doing business.”

Comments

TRENDING

Campaign group urges INDIA alliance to release Jharkhand manifesto to counter BJP’s 'divisive' agenda

By Our Representative  The Loktantra Bachao Abhiyan, an advocacy group, has issued a press release urging the INDIA alliance to release a Jharkhand-specific manifesto to counter the BJP’s "divisive" electoral agenda. With just two weeks remaining before the assembly elections, the INDIA coalition has yet to announce its plans and priorities for the state. Meanwhile, the BJP's campaign, according to the press release, is centered around communalism, divisiveness, and distraction from Jharkhand's core issues.

Tributes paid to pioneer of Naxalism in Punjab, who 'dodged' police for 60 yrs

By Harsh Thakor*  Jagjit Singh Sohal, known as Comrade Sharma, a pioneer of Naxalism in Punjab, passed away on October 20 at the age of 96. Committed to the Naxalite cause and a prominent Maoist leader, Sohal, who succeeded Charu Majumdar, played hide and seek with the police for almost six decades. He was cremated in Patiala.

Israel's 'war crime': 18,000 children died not just from bomb explosions but also starvation

By Sandeep Pandey*  Last year 6 years old Madiha was a guest during Diwali at our home in Lucknow. Listening to the sound of fire crackers bursting outside she remarked, ‘It appears as if we’re in Gaza.’ She has probably no idea of the extent of damage and loss of life that has taken place in Palestine but can relate to sound of crackers as bombs exploding over Gaza.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad*  On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya. 

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad*  The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah  The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

How pseudo-liberals 'went wrong' in judging DY Chandrachud as Chief Justice India

By Shamsul Islam*  DY Chandrachud took charge as Chief Justice of the Indian Supreme Court (SC) on November 09, 2022. On this occasion many of the pseudo-liberals who claimed to be defenders of the democratic-secular polity of India manifested great happiness. They declared that the time of SC being an appendage of the RSS-BJP government headed by PM Modi was over as Justice Chandrachud was a liberal judge committed to the democratic-secular polity of India. 

In the pantheon of Indian cricket, VVS Laxman as symbol of elegance, resilience, unselfish brilliance

By Harsh Thakor*  On November 1st, legendary Indian cricketer VVS Laxman celebrates his 50th birthday. Known for his elegance, Laxman turned impossible matches on their heads with a style that captivated cricket fans worldwide. He wielded his bat like an artist’s brush, finding gaps on the field with surgical precision, creating innings as meticulously as a sculptor carves a masterpiece. Born in Hyderabad, Laxman inherited the stylistic lineage of local icons ML Jaisimha and Mohammad Azharuddin, blending it with a grace reminiscent of Gundappa Viswanath.