The Rise of the Asian Infrastructure Investment Bank

Presidential Memorandum

Subject: The rise of the Asian Infrastructure Investment Bank

The slowdown of traditional economic hubs in the West and the emergence of new economic powers is rapidly changing the status quo in which the United States first soared. This new scenario requires the reconsideration of our approaches in order secure US interests in the coming decades; A pivot towards Asia is now more important than ever. Nevertheless, as China continues to rise, its regional importance is also gaining impetus, ostensibly challenging US dominance in the area at times.

In this line, one of the latest chief concerns of our government has been the momentum gained by The Asian Infrastructure Investment Bank (AIIB) , a Chinese-led bank project aimed at fostering economic development in Asia. If unaddressed, the emergence of international institutions in which the United States has no leverage, may imply an alteration of American-backed standards of international cooperation, something very detrimental for our interests.

Recently, The United Kingdom, France, Italy, Germany , Australia and other American long-term allies decided to embrace the project , dismissing prior warnings from our Administration. Consequently, as a containment policy is rendering more and more futile,  a drastic change of approach  seems reasonable. It may be time to accept that initiatives for new World-shaping institutions coming from other countries than the US will continue to emerge. In order not to lose leverage in them, it may now be time for the United States to consider partaking or supporting these new arrangements (Perlez,2015). In the long-term, embracing the Chinese-led initiative would have many benefits:

Firstly, concerns about functioning standards of the newly funded institution ought to be tackled from within. Supporting or eventually joining the AIIB project would allow the United States to have a saying on the institution's development path, therein fostering proper lending standards together with environmental, working  and transparency regulations in the Area.  The United States would not be the only party interested, the presence of other Western countries underlies the future likely importance of traditional actors in the institution (C.Economy,2015).

Secondly, building fruitful economic ties in Asia requires further international cooperation in the area, which is sometimes hindered by important gaps in economic development among actors. Providing funds to the AIIB is an opportunity for the United States to help in the much needed development of Asia's infrastructure while gaining leverage in the region.

Thirdly, the support from our Administration could pave the way for American firms to capitalize on opportunities in the region. The competitiveness of our corporate sector would ensure many successful bids for our companies in AIIB-funded projects if they are able to access them (The economist,2015).