Last week, 57 nations became founding members of the Asian Infrastructure Investment Bank, the China-led regional development bank. Japan and the United States opted not to join, expressing doubts over governance and transparency at the new organization.
Even if the Obama administration were in favor of the United States becoming a member, Congress wouldn’t allow it; lately, it has even blocked a funding increase for the International Monetary Fund that was backed by the G-20. But the National Diet of Japan faces a different situation. The governing Liberal Democratic Party is split over the A.I.I.B.; its members are still debating the pros and cons. Komeito, the L.D.P.’s junior coalition party, and the Democratic Party of Japan, the opposition, are largely in favor of membership.
Japan, Sticking With U.S., Says It Won’t Join China-Led Bank
Prime Minister Shinzo Abe said it was important for strategic reasons that Japan back the United States, which has urged allies not to join the bank.MARCH 31, 2015
The case for Japan joining the A.I.I.B. is simple and strong. By distributing financial assistance to states in the Asia-Pacific, the bank will inevitably help shape the region’s future economic architecture, as well as, implicitly, its security relations. Japan has a major strategic interest in participating.
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