US Should Work With China’s AIIB: Guardian

Posted by david on Oct 27, 2014 in Blog | 0 comments

This Guardian editorial hits the mark:

http://www.theguardian.com/commentisfree/2014/oct/26/guardian-view-asian-infrastructure-bank-united-states-work-not-oppose

Further to a previous post, it should be emphasized that the US and its closest allies have been slow, in fact, dragging it feet, in reforming the WB, IMF and ADB.  This has proved frustrating to the Chinese (and other large developing countries) so it went ahead to form the Asia Infrastructure Investment Bank (AIIB) with 20 other developing countries.  Two key US allies Australia and South Korea stood on the sidelines along with Indonesia despite being invited to the founding party.

Needless to say, there remains a great need for infrastructural development in Asia.  The US should not take a dim, zero-sum view of the relationship between US/EU/Japan led institutions and the AIIB.  In many ways, the various development institutions can complement each other for the betterment of Asia.  If the US and Japan continue to be obstinate, the AIIB will only grow in influence at the expense of multilateral financial institutions that they lead.