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The
dilemma of whether or not to participate in Asian Infrastructure Investment
Bank
It
causes great conflict as usual when Taiwan authorities consider applying the Asian
Infrastructure Investment Bank (AIIB). Many debates focus on the political
sovereignty. The political sovereignty dispute began in the civil war. However,
I would like to provide some viewpoints about the AIIB issue.
1.
The Purpose of the Regional International Financial Organizations
International
financial institutions such as the International Monetary Fund (IMF) and World
Bank (IBRD) were established for not-for-profit purposes. For example, the
World Bank's aim is to help less developed countries to solve the poverty
problem. Its declaration is “Working for a World Free of Poverty”.
In
addition, many of the regional international financial institutions are
intended to assist the economic development of countries in the region. It is
not appropriate if we always mention ROI or pay back.
2.
Diplomatic influence of these organizations
In
addition to the purposes, those regional international financial institutions
are main tools for United States and its allies. For example, presidents of IMF
are mainly from European countries and World Bank president is from the United
States. In addition, the presidents of the Asian Development Bank (ADB) are always
from Japan. These international financial institutions are diplomatic influence
tool for leading countries. China, after growing economic strength, would seek one
of these agencies to enhance its influence in the institutions or even to start
a new organization such as AIIB.
3.
It is not a significant issue for Taiwan to joint AIIB or not
The
capital scales of IMF, World Bank and ADB are 238 billion US dollars, 220
billion US dollars, and 175 billion US dollars, respectively. The proposed AIIB
is 100 billion US dollars.
The
proportion of each country is on the basis of GDP to warrants, according to the
Minister of Finance of Executive Yuan. That is to say, Taiwan is expected to
pledge about 2.2 billion NT dollars or the right to vote is about 0.1%. It is
not a significant issue for Taiwan to joint AIIB or not
4.
Symbolism or Realism
Taiwan
desires to joint more international organizations because the cross Strait
political situation. AIIB is a new attempt to test the one China policy. Many people
are concerned about the problem of national dignity which needs to negotiate at
any situations.
In
addition, concerns about China profiting from AIIB, China proposes the “ Vision
and Actions on Jointly Building Silk Road Economic Belt and 21st-Century
Maritime Silk Road” for the great construction of Asia and Europe. The
strategic policy of AIIB will make the relationships between Asian countries
closer.
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