THE Asian Infrastructure Investment Bank (AIIB) was proposed by the Chinese government in October 2013. One year later, on October 24, 2014, the AIIB was officially launched in Beijing at a signing ceremony of the memorandum of understanding. The Philippines was a signatory to that agreement, along with such diverse countries as Qatar, India and Thailand.
The need for the existence of the AIIB is clear. The Asian Development Bank (ADB) Institute published a report in 2010 that said Asia requires $8 trillion, to be invested from 2010 to 2020, in infrastructure in order to continue economic development.
The “reason” for the AIIB is also clear. Asia, led by China, must push away the dominance on global financing institutions by Europe, the United States and, to a lesser extent, Japan.
The International Monetary Fund (IMF) is controlled by the Europeans. The World Bank is under the Americans’ thumb. Japan and the US each control 15 percent of ADB shares but the presidency of the third-largest multilateral lender has never left the hands of the Japanese since 1966. Every president of the IMF has been European. Every president of the World Bank has been a US citizen.
The Philippines should be in the forefront of the beginning of the AIIB. However, the Philippines is “still considering” the option of becoming a founding member.
A decision of this importance should be given some time for thoughtful consideration.
Ticktock, ticktock.
We thought it over. The Philippines should make a firm commitment to join the AIIB now.
Indonesia thought it over, and is so enthusiastic that President Joko Widodo went to China to discuss building the AIIB headquarters in Jakarta. Taiwan was rejected as a prospective founding member (PFM) due to political differences with Beijing, but still is applying for ordinary membership. Even North Korea wants in, but was rejected, since it will not furnish its economic data.
Finance Secretary Cesar V. Purisima said they are ensuring that the AIIB is multilateral in nature. We can help address that question. United Kingdom Chancellor of the Exchequer George Osborne announced that Britain had agreed to lend money to the AIIB. France, Germany, Italy, Russia, Poland, Denmark, Spain and Brazil are among 34 PFMs in the Asian region and 16 PFMs outside Asia. China has even agreed to give up its veto power over AIIB decisions.
Why would the Philippines hesitate at all?
Perhaps, the answer lies in the government’s desire to use our membership as a way to snub China for its moves in the West Philippine Sea (South China Sea). If that is the case, it is an example of shooting yourself in the foot.
Perhaps, it is to appease and gain favor with the US, which has badly embarrassed itself by unsuccessfully putting pressure on the Europeans not to join. If so, we are backing the losing side.
If the government does not join or delays joining the AIIB, the only country to suffer will be the Philippines.
Image credits: Jimbo Albano
1 comment
NO WAY!!!!!….joining the AIIB is like agreeing to the big bad Yellow bully’s every whim!!!…..I’d rather stick with the ADB and other multilateral financing institution, rather than join this Chinese financing/bribery insitution