Context: The Asian Infrastructure Investment Bank (AIIB) has approved funding of $500 million to support India’s efforts to fight the COVID-19 pandemic.
More on news:
- The government and the AIIB signed a India COVID-19 Emergency Response and Health Systems Preparedness Project that would help strengthen India’s public health preparedness.
- This is the first ever health sector support from the Beijing-headquartered bank to India.
- The project will be implemented by the National Health Mission (NHM), the National Centre for Disease Control (NCDC) and the Indian Council of Medical Research (ICMR).
About the Project:
- Objective: to prevent, detect and respond to the threat posed by COVID-19 and to strengthen national health systems for preparedness in India.
- It is funded by AIIB’s COVID-19 Crisis Recovery Facility and co-financed with the World Bank.
- The project will comprise six components:
- Emergency COVID-19 Response: The aim of this component is to slow and limit as much as possible the spread of COVID-19 in India.
- This will be achieved through providing immediate support to enhance disease detection capacities by scaling up procurement of personal protective equipment, oxygen delivery systems, and medicines.
- Strengthening National and State health Systems to support Prevention and Preparedness: The component will support the GOI to build resilient health systems to provide core public health, prevention, and patient management functions to manage COVID-19 and future disease outbreaks.
- Strengthening Pandemic Research and Multi-sector, National Institutions and Platforms for One Health: This component will support research on COVID-19 by Indian and other global institutions working in collaboration with the Indian Council of Medical Research.
- Community Engagement and Risk Communication: This component will address significant negative externalities expected in the event of a widespread COVID-19 outbreak and include comprehensive communication strategies.
- Implementation Management, Capacity Building, Monitoring and Evaluation: Support for the strengthening of public structures for the coordination and management of the project would be provided.
- Contingent Emergency Response Component: Provision of immediate response to an eligible crisis or health emergency.
Significance of Project:
- Enhance Coverage: This new support will cover all States and Union Territories across India and address the needs of infected people, at-risk populations, medical and emergency personnel.
- Curtail Dissemination of Virus: The project will enable the government to slow and limit as much as possible the spread of COVID-19 in India by providing immediate support to enhance disease detection capacities, oxygen delivery systems and medicines among others.
- Ease the Economic Load: The project will ease the stress on Indian Economy which has been dwindling since the Covid outbreak and subsequent lockdown.
Asian Infrastructure and Investment Bank:
- It is a multilateral development bank with a mission to improve social and economic outcomes in Asia.
- Headquartered in Beijing,China.
- It began operations in January 2016 and has now grown to 102 approved members worldwide.
- By investing in sustainable infrastructure and other productive sectors in Asia and beyond, it will better connect people, services and markets that over time will impact the lives of billions and build a better future.
- The starting capital of the bank was $100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank.
- Three categories of votes exist: basic votes, share votes and Founding Member votes.
- The basic votes are equal for all members and constitute 12% of the total votes, while the share votes are equal to the number of shares. Each Founding Member furthermore gets 600 votes.
- Fourteen of the G-20 nations are AIIB members including India, China, France, Germany, Italy and the United Kingdom.
- China is the largest shareholder with 26.61 % voting shares in the bank followed by India (7.6%), Russia (6.01%) and Germany (4.2 %).
Image Source: Indianexpress