24 March 2015

Editorial: One In All In, AIIB Gains Momentum


By Luke Hunt

Even with the South China Sea disputes, ASEAN countries insist they are committed to China’s new development bank.

Plans for a China-led Asian Infrastructure Investment Bank (AIIB) have proved divisive. As a potential competitor to the World Bank and the International Monetary Fund (IMF) it has not been welcomed by the United States, which still dominates both institutions.
And for good reason. China is not a democracy and it’s expansionist policies from the South China Sea to Central Asia and Africa have hardly endeared Beijing to its neighbors near and far. It also wants a 49 percent stake in the bank, leaving 30-odd not-so insignificant countries with minority holdings and a minor say.
Nevertheless momentum is building ahead of its March 31 deadline for founding members, particularly after Britain said it would join the AIIB along with France, Germany and Italy, claiming that it was in the national interest. Other European countries are expected to follow suit.
Australia, a staunch U.S. ally with historical ties to Britain, is likely to follow suit after Prime Minister Tony Abbott noted in the Australian media that “the UK has indicated an intention to sign up for the negotiations, the New Zealanders before Christmas signed up for the negotiations, the Singaporeans likewise, the Indians likewise.
“We’re looking very carefully at this and we’ll make a decision in the next week or so.” 

Read the full story at The Diplomat