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No.27
Diplomacy, No.27  Jun. 4, 2015

Japan’s participation in the Asian Infrastructure Investment Bank (AIIB)— A Proposal by the Economists for Peace and Security (EPS)

“Japan will, in collaboration with the ADB, provide Asia with innovative infrastructure financing at a scale of 110 billion dollars—13 trillion yen equivalent—in total over five years.” Prime Minister Abe Shinzo said at the Banquet of the 21st International Conference on the Future of Asia, May 21, 2015. PHOTO from the website of the Prime Minister of Japan and his Cabinet

We, the Economists for Peace and Security (EPS)[2], value the Asian Infrastructure Investment Bank (AIIB) spearheaded by China as an initiative in which developing nations take on a central role in developing their own infrastructure; one with potential that international society should welcome. This is because it would be favorable for China to utilize its growing economic and financial power within a multinational framework to establish the international public good of Asia’s infrastructure. On the other hand, there are concerns that China may try to exploit the AIIB as a foreign policy tool to expand its economic and political influence in Asia, or that it may try to challenge the order of existing international financial institutions such as the World Bank and the Asian Development Bank (ADB). In regards to Japan’s participation in the AIIB, we propose that discussions and decisions should be made ... ... [Read more]