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The United States has expressed concerns about China’s plan to create a new development bank for Asia. U.S. officials say they have questions about how the new bank’s system of governance. But some experts say opposition to the new organization may not be a good idea. China and 20 other countries launched the Asian Infrastructure Investment Bank last month. But some nations, including the United States, wonder whether the bank meets international models for governance and openness. U.S. State Department official Jen Psaki says openness would be important for such an organization. Some observers say the U.S. opposition to the Asian Infrastructure Investment Bank is a mistake. Richard Cronin is at the Henry L. Stimson Center, in Washington, DC. He says opposition to the bank is not good politics. But, the United States is not the only nation to have reservations about the new development bank. Australian Prime Minister Tony Abbott recently said his government would like to join. But first, he said, it needs the bank to have the kind of transparency found in organizations such as the World Bank. South Korea has said more consideration is needed on the new bank’s governance.
Richard Cronin also says geopolitical considerations are the biggest reason why the United States and some of its allies have not joined the bank. The U.S. and its traditional allies have funded and worked through institutions such as the World Bank and the Asia Development Bank. China and other developing economies for many years have said they have had little influence at western-led development banks.