"Quite naive to want to do that with the Chinese"

Parliamentarians discuss the pros and cons of Germany's entry into the AIIB bank
Thomas Gambke (Grüne)
Thomas Gambke (Grüne)

Members of the Bundestag discussed at a meeting organized by urgewald in March 2017. Participating in the debate were: Philipp Murmann (CDU), Manfred Zöllmer (SPD), Thomas Gambke (Greens) and Axel Troost (Left Party).

Was it right for Germany to get involved with the bank?

A clear yes initially echoed from the round of politicians: this way, the Bundestag could at least make an attempt to "orient a bank somewhat differently, so to speak, than the classic banks we have in the field today," said Thomas Gambke (Greens). "We can only achieve something if we are there, if we get involved," added Manfred Zöllmer (SPD). "I have hope that a modern bank will now be created," said Philipp Murmann (CDU). Parliamentarians also expressed hope that the AIIB could be built as a counterweight to the increasingly authoritarian U.S. under Donald Trump and the U.S.-dominated World Bank. So the AIIB as a possible trailblazer rather than a laggard on the issue of environmental and social standards? NGO representatives were skeptical.

We can only achieve something if we are there, if we get involved.

Manfred Zöllmer (SPD)

Skepticism also came from Arntraud Hartmann, a member of the Asian Development Bank's independent procurement mechanism: "We are already seeing a softening of standards at the World Bank. Quite rapidly. The Asian Development Bank still has very solid standards so far. I would be very surprised if they are not softened as well. And that's also a consequence of the fact that we have institutions that are in competition." She also made a clear call to policymakers on the grievance mechanism: "I strongly advise that the German side insists on the introduction of a compliance mechanism.

Parliamentarians discuss at meeting in Berlin
Parliamentarians discuss at meeting in Berlin

It is questionable how Germany can compete with China as a power in the bank that is highly problematic in terms of human rights. Gambke from the Green Party said: "Now you can say that it is quite naive to want to do this with the Chinese. This argument is very serious and also correct. But nevertheless we should see if we can't do with new structures in such a bank what I think we have to do in these countries. Think about the issue of energy, we don't want nuclear or nuclear power plants, but we want to promote Small and Medium-Sized Enterprises that make renewable energy."

How well informed is Parliament?

"The fact that you might not get information until after the approval is certainly to be criticized," said Axel Troost (Left Party). This is exactly what NGOs also criticized with regard to the previous, provisional transparency rules (see above). This makes the inclusion of those affected as well as the control of projects impossible.

It was only through information from urgewald that the parliamentary groups became aware of the dangers at the AIIB in terms of environmental protection and human rights. There was unanimous recognition for the role of environmental and human rights groups: "NGOs like urgewald provide us with information on issues like the AIIB that we would otherwise not have access to," said Zöllmer (SPD).

I cannot deny the danger of a race to the bottom.

Dr. Thomas Gambke (Greens)
Question from the audience
Question from the audience

Axel Troost from the Left Party made it clear that as a parliamentarian one does not know all the details in such complex issues. Therefore, it is important that there is urgewald and other organizations that inform, "tell us what is going on, what is the information, what are the problems". The consequence on the topic of the AIIB was clear requirements that the Bundestag formulated at the end of 2015 for transparency as well as standards at the bank. "As a parliament, we want to accompany this process and possibly also counteract it. That worked in this example," Troost said.

"Increasing standards" or "race to the bottom"?

"I cannot deny the danger of a race to the bottom," noted Thomas Gambke of the Green Party. And Axel Troost of the Left Party also called for strong oversight by the shareholders so that the AIIB's efficiency drive does not lead to an overall decline in environmental and social standards at multilateral banks. And so that they do not finance further development scandals but effective and helpful projects.

"Lean, clean, green" is the AIIB's self-description. Towards the end of the meeting in Berlin, campaigner Kate Geary demanded: "Please, not "mean" as well.