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

Avoidable Narmada floods: Modi birthday fete caused long wait for release of dam waters

Counterview Desk  Top advocacy group, South Asia Network on Dams, Rivers and People (SANDRP), has accused the Sardar Sarovar dam operators for once again acting in an "unaccountable" manner, bringing "avoidable floods in downstream Gujarat."  In a detailed analysis, SANDRP has said that the water level at the Golden Bridge in Bharuch approached the highest flood level on September 17, 2023, but these "could have been significantly lower and much less disastrous" both for the upstream and downstream areas of the dam, if the authorities had taken action earlier based on available actionable information.

Junk food push causing severe public health crisis of obesity, diabetes in India: Report

By Rajiv Shah  A new report , “The Junk Push: Rising Consumption of Ultra-processed foods in India- Policy, Politics and Reality”, public health experts, consumers groups, lawyers, youth and patient groups, has called upon the Government of India to check the soaring consumption of High Fat Sugar or Salt (HFSS) foods or ultra-processed foods (UPF), popularly called junk food.

From 'Naatu-Naatu' to 'Nipah-Nipah': Dancing to the tune of western pipers?

By Dr Amitav Banerjee, MD*  Some critics have commented that the ecstatic response of most Indians to the Oscar for the racy Indian song, “Naatu-Naatu” from the film, “RRR” reeks of sheer racism, insulting visuals and a colonial hangover. It was perhaps these ingredients that impressed the Academy of Motion Picture Arts and Sciences, one critic says.

Astonishing? Violating its own policy, Barclays 'refinanced' Adani Group's $8 billion bonds

By Rajiv Shah  A new report released by two global NGOs, BankTrack and the Toxic Bonds Network, has claimed to have come up with “a disquieting truth”: that Barclays, a financial heavyweight with a “controversial” track record, is deeply entrenched in a “disturbing” alliance with “the Indian conglomerate and coal miner Adani Group.”

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam* RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

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. 

Asset managers hold '2.8 times more equity' in fossil fuel cos than in green investments

By Deepanwita Gita Niyogi*  The world’s largest asset managers are far off track to meet the  2050 net zero commitments , a new study  released by InfluenceMap , a London-based think tank working on climate change and sustainability, says. Released on August 1, the Asset Managers and Climate Change 2023 report by FinanceMap, a work stream of InfluenceMap, finds that the world’s largest asset managers have not improved on their climate performance in the past two years.

'State-sanctioned terror': Stop drone attack on Adivasis, urge over 80 world academics

Counterview Desk  A joint statement, “Indigenous Peoples’ Un-Freedoms and Our Academic Freedom: A Call for Solidarity”, endorsed by over 80 signatories, including international academics, activists and civil society organizations, as well as diasporic Indian academics and researchers, working with Adivasi (indigenous) communities in India, has made an urgent appeal to prevent future drone bomb attacks by the Indian state on Adivasi villages.

Victim of 'hazardous' jobs, Delhi sanitary workers get two thirds of minimum wages

By Sanjeev Kumar*  Recently, the Dalit Adivasi Shakti Adhikar Manch (DASAM) organized a Training of Trainers (ToT) Workshop for sewer workers and waste pickers from all across Delhi NCR. The workshop focused on bringing sanitation workers from different parts of Delhi to train them for organization building and to discuss their issues of minimum wage, contractual labour, regular jobs and social security.