Dhaka to join China’s Asian bank

Bangladesh has finally decided to join China’s own version of the World Bank in a major decision.

Economic Relations Division Secretary Mohammad Mesbahuddin told bdnews24.com that the decision had been taken at a meeting with the finance minister in chair on Wednesday.

“We’ve decided to sign a MoU (in this regard) next month,” he said.

China had revealed its plan last year to create an Asian Infrastructure Investment Bank (AIIB) with a capita of $100 billion.

The emerging power will inject half of the total capital.

This year, it invited Bangladesh to join as its founder-member.

Though Beijing has sought to downplay the politics behind it, analysts say it will extend its financial reach and compete with the World Bank and the Asian Development Bank, which are heavily dominated by Japan.

China has lesser voting power than the US, Japan, and the UK as a World Bank member.

Beijing has scheduled to make its debut by the end of this year with an aim to finance key infrastructure projects in Asian countries.

Research Director of the Bangladesh Institute of Development Studies Zaid Bakht has welcomed the move.

In an immediate reaction he told bdnews24.com that it was “a positive move” keeping regional co-operation in mind.

“China’s is a vital economy in the world. Bangladesh will be benefited (joining the bank).”

China-Bangladesh bonhomie has touched a new height this year following Beijing’s strong backing to the ruling Awami League in the much-talked-about Jan 5 elections.

Prime Minister Sheikh Hasina paid a visit to China in June, when Beijing’s leadership promised to support Bangladesh in massive infrastructure projects.

China carried out its third version of reforms last year and its envoy in Dhaka Li Jun said they wanted to contribute to Bangladesh’s development.

China set an import target of $ 10 trillion and outbound investment of $ 500 billion for the next five years.

Bangladesh “deserves to have a proper share” of this development, the ambassador had said, adding that the engagement between countries at the bilateral and regional levels would drive their cooperation “to an ever-growing new height”.

At the bilateral level, he said, Chinese investments and cooperation in infrastructure construction would see a surge.

Bangladesh is also working closely with China in achieving Beijing’s dream plan – a regional economic corridor linking Bangladesh, China, India, and Myanmar.