The article talks about the introduction of the Asian Infrastructure Investment Bank. (Article Link Here) The Asian Infrastructure Investment Bank "is intended as a way to build badly needed railways, roads and pipelines in underdeveloped areas of Asia." The Asian Infrastructure Investment Bank was able to attract 46 countries as founding members after persuading many that this bank would not be dominated by China.
The United States declined membership to become a founding member of the new bank. The "Obama administration advised its allies not to join on the grounds that the new institution would undermine the World Bank, led by the United States, and the Asian Development Bank, dominated by Japan."
The administration of the Asian Infrastructure Investment Bank responded by saying that "it would encourage the World Bank and the Asian Development Bank to cooperate with the new institution provided its projects meet certain standards of transparency and governance."
Operations of the Asian Infrastructure Investment Bank are expected to begin at the end of the year. The bank is aiming to be a "lean, clean, and green bank" that is led by a "core group of professionals" with no political connections.
Do you think the implementation of the Asian Infrastructure Investment Bank is a good idea?
Will there be conflict between the Asian Infrastructure Investment Bank, the World Bank, and the Asian Development Bank?
China is trying to gain ground on US and Japan economically so it makes since that they want an investment bank of their own. I'm glad that they are not having any political affiliations (though implementing this is always tough) and have the involvement of other countries. It does seem a bit suspect that they would rather form a bank of their own rather than join with the Asian or World Banks. I guess I would like to see how the new Investment bank performs over the next few years to see if they are really going to be as transparent as they say, and use teh bank for simply the means that it has put forth so far.
ReplyDeleteIf the US has denied membership and urged others to do the same I would speculate there will be conflict between the World Bank and the new Asian Infrastructure Investment Bank. I think you're exactly right Taylor, this is another strategic ploy by China to try to gain economic ground on the US and other world powers.
ReplyDeleteI think the bank is a good idea. Competition is a key tenet in capitalism. So why would the new Asian Infrastructure Investment Bank be bad? And, of course, Taylor is right....China is trying to become more powerful economically and politically in Asia. But why should the US be the world's policeman and banker?
ReplyDeleteI have to agree with Taylor that this is another way China can gain more power economically and politically in order to narrow the gap between themselves and the US. After initially reading this article I had thought that the same idea that this bank was a bad idea and would undermine both the World Bank and the Asian Development Bank, but after looking at Professor McKinney's point of view I see that this new Chinese bank may not be a bad idea. As American's we believe that we should always be the leaders globally even when we are shouldn't, so what is wrong with competition?
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