Watching Bus Leaving

Japan stands still in bus stop and watches where the leaving car is going. Chinese government announced that candidate for founding members of Asia Infrastructure Investment Bank amounted forty-six on Tuesday. Major economies in Europe and Asia stepped forward for new framework on investment in Asia, as United States refrained from joining construction of hegemony topped by China. However, doubts on the assessment by Japanese government are spreading inside Japan.

The biggest internal power negative on joining AIIB has been Ministry of Finance. “We can’t help take extremely careful attitude,” told Minister of Finance, Taro Aso. From the beginning of this year, U.S. reached MoF not to immediately jump in the framework led by China, while China welcomed MoF to ask Japan’s participation. Emerge of AIIB means relative decline of Asian Development Bank, which president is reserved seat for retired Vice Minister of Finance for International Affairs.

Expectation to AIIB is an effusion of frustration on ADB, led by U.S. and Japan. Asian countries have been annoyed with strict management of investment by ADB. AIIB may become an asylum for developing nations with slow pace. But, loose standard for development will invite moral hazard in terms of impact on environment or international relations in Asia. Huge burden in capital quota also refrain Japan from positive participation to AIIB. Asian countries will invest seventy-five percent of all capital of AIIB, while the nations of other regions will owe only twenty-five percent.

A fundamental question is how long Japan can ignore AIIB. Some lawmakers with leading Liberal Democratic Party required Japanese government close look at merit and negative elements of AIIB. “We need to flexibly explore a direction that maximizes Japan’s national interest and contributes to Asian nations,” told Representative of Komeito, Natsuo Yamaguchi. Both leading parties had sent delegation to China last month and had briefing of Chinese government on AIIB. They simply believe that AIIB will be genuinely a complement of World Bank or ADB.

Business sectors demands broader options for their own business. Annual demand of Asian nations for infrastructure is estimated to be $700 billions. “It will be unacceptable that Japanese corporation will not be treated in equal in infrastructure business,” told Chairman of Japan Association of Corporate Executives. Adding to economic policy exclusively beneficial to big corporation, business sectors greedily require further profits through diplomatic policy.