Danny Alexander lands top job at China’s new development bank

Former Treasury chief secretary Sir Danny Alexander has been appointed vice president of the new China-backed Asian Infrastructure Investment Bank -China’s equivalent of the Washington DC-based World Bank.

Alexander, 43, a Liberal Democrat who lost his Inverness seat in the General Election had been a leading figure in the coalition government forced in the last parliament when he was charged with implementing PM David Cameron’s austerity measures.

He was defeated by a member of the Scottish National Party in last year’s election.

China set about building its own development bank because it was frustrated by a relative lack of influence at the World Bank (a U.S.-based institution) and the Asian Development Bank (where Japan is a major force).

Skeptical about how the bank would be run, and seeking to limit its effectiveness, the U.S. quietly encouraged allies not to participate. But in March, the U.K. broke ranks, announcing it would apply for membership. France, Germany and Italy all followed Britain’s lead.

The UK has also been given one of the 12 seats on the AIIB’s board of directors.

“Danny’s appointment … demonstrates that the UK is playing a crucial role as the AIIB is formally established. Britain’s influence is being felt across the world,” George Osborne, the Chancellor of the Exchequer, said in a statement.

He added: “I worked very closely with Danny over the last five 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.”