A planned Asian infrastructure bank led by China should have high governance standards and should foster multilateral cooperation, not competition, according to a senior US government official.
Decisions should not be dominated by any one country and should ensure social and environmental protections, says Stefan Selig, US undersecretary of commerce for international trade, as quoted by the Hong Kong Economic Journal.
Selig is warning against any attempt to turn the Asian Infrastructure Investment Bank (AIIB) into a competitor of existing multilateral institutions.
These include the US-led International Monetary Fund and the World Bank, the Japan-sponsored Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD).
Earlier reports said a German official drew similarities between the AIIB charter and those of the ADB and EBRD.
These followed an announcement by China’s Ministry of Finance that all 57 founding members of the AIIB have agreed to its articles of incorporation, setting the stage for its launch by the end of the year.
Meanwhile, Germany said it will be the bank’s fourth largest shareholder with a 4.5 percent stake after China (29.8 percent), India (8.4 percent) and Russia (6.5 percent).
China will have a 26 percent voting right while Australia, New Zealand, South Korea, Singapore and others will have a combined 30 percent, reports say.
Translation by Vey Wong
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