APVAX Initiative

Q Why is it in News ?

A The Government of India has applied for loans from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to procure as many as 667 million doses of COVID-19 vaccines under the Asia Pacific Vaccine Access Facility (APVAX) initiative.

Q What is the APVAX Initiative ?

A 

• The Asian Development Bank (ADB) is expected to lend $1.5 billion and the Asian Infrastructure Investment Bank (AIIB) around $500 million for the vaccine purchase by India.
• It which has been made under the ADB’s Asia Pacific Vaccine Access Facility (APVAX) initiative.
• Launched in December 2020, APVAX offers “rapid and equitable support to its developing member countries as they procure and deliver effective and safe COVID-19 vaccines”.
• The Beijing-headquartered AIIB will co-finance the vaccine procurement.

Q What are some key details about Asian Development Bank (ADB) ?

A 

• The ADB is a regional development bank established on 19 December 1966.
• It is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines.
• From 31 members at its establishment, ADB now has 68 members.
• The ADB was modelled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.
• ADB is an official United Nations Observer.
• As of 31 December 2020, Japan and the UN each holds the largest proportion of shares at 15.571%.
• China holds 6.429%, India holds 6.317%, and Australia holds 5.773%.

Q What are some key details about Asian Infrastructure Investment Bank (AIIB) ?

A 

• The AIIB is a multilateral development bank that aims to improve economic and social outcomes in Asia.
• The bank was proposed by China in 2013 and the initiative was launched at a ceremony in Beijing in October 2014.
• The bank currently has 103 members, including 16 prospective members from around the world.
• The starting capital of the bank was US$100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank.
• It received the highest credit ratings from the three biggest rating agencies in the world, and is seen as a potential rival to the World Bank and IMF.

AIIB and India

• So far, the AIIB has approved loans for 28 projects in India amounting to $6.7 billion, more than for any other member of the multilateral bank.
• India is the second-largest shareholder after China in the bank, which does not count the U.S. and Japan among its members.