Australia has announced that it is joining an Asian infrastructure bank started by China. This move is in reversal to its earlier decision of not becoming a member under US pressure. A lot of American allies, like Britain, France, Italy and now Australia have under Chinese pressure joined the bank, leaving the US vulnerable.
The office of Prime Minister Tony Abbott said in a statement " Australia still had concerns about the management of the bank but recognizes the pressing needs for infrastructure in Asia".
The main concern of the US is that IMF and the World Bank might which are under US leadership might get undermined by the Chinese led Asian Bank. The Chinese counter by mentioning the dismal bureaucracy at the World Bank and the Asian Development Bank, which hampers growth worldwide.
After Australia's joining the bank the US has been left with only Japan as its main Asia Pacific ally and this has resulted in some experts suggesting that the US might reconsider joining the bank. However its unlikely that President Obama would change his decision and Congress would reject such a move as well.
http://www.nytimes.com/2015/03/29/world/asia/australia-to-join-regional-development-bank-led-by-china.html?ref=international
1 comment:
I'm really interested in this development of a Chinese-run development bank simply because it shows a shift away from a more Western approach and may lessen some of the adverse ideas that countries have about seeking aid when they need it. They won't feel that it is an oppression by Neo-Colonial powers if it comes from a non-western counterpart. At least that's my hope.
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