[ti:Chinese Development Bank Gains Members] [ar:Mario Ritter] [al:Economics Report] [by:www.51voa.com] [00:00.00]Development banking in Asia has been in the news lately. [00:04.47]Last year, China proposed creation of a development bank [00:09.36]called the Asian Infrastructure Investment Bank. [00:14.11]Chinese officials say the institution [00:17.52]would help finance infrastructure projects throughout Asia. [00:22.58]The area has a need for better roads and other infrastructure, [00:29.08]including ports and power supplies. [00:32.38]The Asian Development Bank, another organization, [00:37.14]was set up to reduce poverty in Asia and the Pacific. [00:42.81]It estimated last May that the Asia-Pacific area [00:47.30]needs about $800 billion a year in infrastructure development. [00:53.85]China reports that more than 20 countries [00:58.30]have agreed to be founding members [01:01.42]of the Asia Infrastructure Investment Bank, or AIIB. [01:08.35]Recently, some European powers added themselves to the list. [01:14.76]U.S. allies Britain, Germany, France and Italy have joined up. [01:21.94]So has South Korea. [01:24.66]And Australia has agreed to move forward with negotiations. [01:31.63]The United States, however, [01:34.16]has said it is concerned about the governance of the AIIB. [01:40.19]It has urged countries to consider the bank's standards, [01:45.02]its social and environmental policies, before joining. [01:50.92]Some observers say the United States [01:54.98]should join the bank as a founding member. [01:58.11]Asia expert Alejandro Reyes said [02:02.85]the way the U.S. has dealt with the bank shows outdated thinking. [02:08.70]Yet other observers have said it is unlikely the U.S. will do so. [02:15.21]The last day to become a founding member is March 31st. [02:20.97]Robert Kahn is a senior fellow at the Council on Foreign Relations. [02:28.04]He said U.S. officials are concerned [02:31.47]that the AIIB may be seeking to replace existing institutions, [02:37.80]such as the World Bank and Asian Development Bank. [02:43.44]"In a world with the better politics, [02:45.83]the United States would be joining this institution, [02:49.32]but because of the environment on the Hill (in Washington), [02:52.97]the United States is not only not in position [02:55.28]where it could join this institution and get it approved by Congress, [02:58.65]it cannot get even basic reform in the IMF through in a way [03:03.50]that would make the existing institutions more attractive to the rising powers." [03:08.42]The U.S. Congress has failed to approve reforms of voting rights [03:13.46]for the International Monetary Fund. [03:16.53]The delay has led China and other countries [03:20.69]to consider setting up their own institutions [03:24.76]as a way to gain more influence in world economic governance. [03:30.54]Still, officials at the IMF, World Bank and Asian Development Bank [03:38.81]say they are looking for ways to cooperate with the AIIB. [03:45.47]U.S. officials say they welcome new multi-lateral institutions [03:52.34]that would observe high standards that the international community has built. [03:58.45]China says it will uphold high standards. [04:02.95]But most details will not become clear until the new bank is operational. [04:10.23]The bank is expected to start with $100 billion in capital, mostly from China. [04:19.42]Experts say it remains to be seen [04:23.32]how China will take on a leadership position in the AIIB [04:29.69]or whether it will work with existing organizations. [04:33.99]Tom Wright is director of the Project of International Order and Strategy [04:40.89]at the Brookings Institution in Washington, DC. [04:45.60]"This is not the end. It really is just [the] beginning [04:49.27]and especially the beginning of a new chapter for China. [04:52.15]It set up this bank, it said it is going to take a leadership position, [04:56.45]but huge questions still hang over how it is going to behave." [05:01.94]China considers itself in a good position [05:06.09]to carry out infrastructure projects in Asia. [05:09.62]However, it has depended on state-owned companies and labor when working overseas. [05:17.36]Using international labor standards rather than Chinese labor rules [05:24.31]would be a step forward, says economist Liu Li-gang of the ANZ Banking Group. [05:31.88]He says China should open up competition for bank-supported projects. [05:39.04]He said this will reduce criticism from often linked to Chinese foreign investment. [05:46.65]I'm Mario Ritter. [05:48.81]¸ü¶àÌýÁ¦Çë·ÃÎÊ51VOA.COM