EDITORIAL: THERE is a lot of active canvassing now going on in Asian, European and North American capitals in favour of the proposal to set up an Asian Development Bank. When it was decided four months ago at the Wellington conference of the ECAFE to explore the possibilities of launching such a regional banking institution, the advanced countries showed scant interest in the idea. ... It is only recently that two advanced countries — the US and Japan — expressed their interest in the projected bank. ...

The projected Asian Development Bank, if it is to deserve this title, must be truly Asian in inspiration and intention. ... If the Bank is to promote Asian economic development irrespective of political and ideological considerations, the great bulk of its equity capital must be supplied by Asian countries. ...Much depends on the spirit in which the developed countries participate in the effort to set up the Bank. It remains to be seen in particular whether the US contribution will be intended to give Washington a special political leverage in its dealings with the Bank. ...

America’s ideas about Asian ‘stability and progress’ are very well-known to people in this country. It is quite possible that in the pursuit of these aims, the US may seek to give a very special position in the administration of the Banks’ affairs to its principal Asian client — India. There already seems to be a move that the headquarters of the proposed Bank should be located in Delhi. To the extent that the Bank will promote development and regional economic cooperation, it will enjoy the support of ECAFE’s Asian members. But the Bank can subserve these aims only if it is left free to operate without built-in political prejudices.

Published in Dawn, August 1st, 2015

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