The President of the Asian Infrastructure Investment Bank (AIIB), Jin Liqun has today (5 February) appointed the UK’s Danny Alexander for a key role in the bank’s leadership, as Vice-President and Corporate Secretary, and member of the executive management team.
The Chancellor also confirmed that the UK has secured agreement that it will lead a constituency of AIIB members from wider Europe. The UK will have one of the twelve seats on the AIIB’s board of directors, delivering crucial influence in the bank from the outset.
Welcoming the nomination, Chancellor of the Exchequer, George Osborne said:
I am delighted that President Jin Liqun has appointed Sir Danny Alexander for a Vice-President role at the AIIB. I worked very closely with Danny over the last 5 years. I know him to be a person of real intelligence and integrity and from his record as Chief Secretary to the Treasury - where he helped turn around the UK public finances and oversaw the coalition’s infrastructure programme - will bring a huge amount of experience that will be a huge asset in setting up this important international body.
Danny’s appointment, together with the UK’s position on the AIIB Board of Directors, demonstrates that the UK is playing a crucial role as the AIIB is formally established. Britain’s influence is being felt across the world.
Sir Danny Alexander said:
I am delighted to have been appointed to this role. I look forward to using my experience and skills, including as Chief Secretary to the Treasury during one of the most challenging recent times for the UK economy, to help ensure the AIIB succeeds.
I will relish the challenge of being part of this new institution as it establishes itself as a crucial part of the multilateral landscape, supporting growth, tackling climate change, and helping drive up living standards in Asia. The creation of the AIIB is the right initiative at the right time to meet these challenges, and I am committed to doing all I can to support the success of the bank.
- The UK was the first major Western country, and first G7 member, to announce its intention to join the AIIB in March 2015. On 3 December 2015, the UK became the first country from outside Asia and first G7 member to ratify the Articles of Agreement of the AIIB.
- The AIIB will support financing for infrastructure projects across Asia, using a variety of support measures – including loans, equity investments, and guarantees – to boost investment across a range of sectors including transportation, energy and telecommunications.
- The UK’s membership of the AIIB will build further links between the UK and the fast growing Asian economies, creating opportunities for British business.
- The AIIB will be headquartered in Beijing. The AIIB’s charter became effective on 25 December 2015 (see www.aiib.org). The inaugural meetings of the AIIB’s Board of Governors were held in Beijing on 16-17 January 2016, marking the formal commencement of the AIIB’s business, and electing the President and Board of Directors.
- The day-to-day running of the AIIB will be managed through the President and his executive team. There are five Vice-Presidents in total, including Corporate Secretary, Chief Investment Officer, Chief Risk Office, VP Strategy and Policy, and Chief Administration Officer. Vice-Presidents are appointed by the Board of Directors, on the recommendation of the President. The primary responsibility of the Corporate Secretary is to act as a focal point of communication among the Board of Directors of AIIB, the leadership team and its shareholders, the Board of Governors.
- The AIIB will be governed by a Board of Governors, on which all 57 members of the AIIB will be represented. Strategic direction will be given through a non-resident Board of Directors, comprised of twelve representatives (nine regional and three non-regional), with members grouped into so-called ‘constituencies’.
- The Right Honourable Sir Danny Alexander was Chief Secretary to the Treasury between 2010 and 2015, during the coalition government. From 2008 to 2010, he served as chief of staff to Liberal Democrat party leader Nick Clegg. Danny Alexander received a knighthood from the Queen in 2015. He is a Visiting Fellow at Nuffield College, Oxford University, and has a BA in Philosophy, Politics and Economics from Oxford University.
- The AIIB recruits qualified staff globally in open, fair and transparent competition. The Vice President roles were advertised on the AIIB’s website, and an executive search firm was also used. Sir Danny’s appointment is subject to the normal approval from the Advisory Committee on Business Appointments.
- At the outset, the UK will lead a constituency of members from Europe – comprising Poland, Switzerland, Sweden, Denmark, Norway and Iceland – and assume one of the twelve seats on the AIIB Board of Directors. Directors are usually senior civil servants from member countries.