China must dispel concerns over new world bank
IT IS regrettable that the United States and Japan have not joined the Asian Infrastructure Investment Bank (AIIB) because they are afraid that China has the intention and clout to shape the new world order ("Banking on infrastructure of the future"; April 20, "S-E Asia and the shaping of China's new world bank"; last Thursday, and "China-led bank 'to fill funding gap, but hurdles remain'"; yesterday).
This has indirectly cast a shadow on the structure and administration of the AIIB.
The US worries about whether the AIIB will weaken the governance, operations and efficiency of the World Bank and the International Monetary Fund.
It is also concerned about the AIIB's governance standards and China's environmental and social complications.
However, these fears have yet to be proven true.
China, as the initiator of the AIIB, needs to clearly put on the table the core framework and detailed plans of the AIIB development programmes.
It also has to identify and lay down how it is going to fairly and transparently distribute its capital and development funding, to allay the worries and suspicions of all the founding members.
China has a long journey ahead and a lot of hard work to do.
The mark of the AIIB's success is whether China can convince all the founding members to cooperate, work and contribute seamlessly and assiduously towards the principal objectives of the AIIB, and thereafter, share the fruits of the harvest.
Asean should persist in its longstanding policy of neutrality, non-alliance and non-interference ("AIIB may 'speed up Asean plans for fully unified economic bloc'"; yesterday).
It should not get involved in the hegemony and tussle of the superpowers.
Most importantly, Asean should focus on the core priority of economic development, especially infrastructure development.
Nevertheless, I hope Singapore, with its good track record, expertise and experience, can play an active role in setting up the AIIB.
It can help to bridge the cultural differences and communication gap between China and the Western member countries.
Perhaps the regional headquarters of the AIIB could even be based in Singapore.
