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AIIB can be based in cities other than S’pore

While the argument that “S’pore should be AIIB’s regional headquarters” (April 11) has merit, it should be up to the planners and the final list of Asian Infrastructure Investment Bank participants and shareholders to decide on the bank’s headquarters.

While the argument that “S’pore should be AIIB’s regional headquarters” (April 11) has merit, it should be up to the planners and the final list of Asian Infrastructure Investment Bank participants and shareholders to decide on the bank’s headquarters.

The writer cites Singapore’s strong financial position, infrastructure and background as the first reason for it to have AIIB’s headquarters.

This is true, given Singapore’s story of succeeding as a developed country in less than 50 years.

However much Singapore has the foundations for a development bank, it is not the only choice in the region, though. Even if the infrastructure in other cities such as Jakarta is less stable, this does not mean that such cities cannot be possible choices.

Other regional development banks, such as the Asian Development Bank (ADB) and the African Development Bank, are headquartered in less developed cities such as Manila and Abidjan, yet have a pretty successful development record.

Second, the writer cites Beijing’s poor environmental record for why Singapore should also host the AIIB. That is an unqualified argument; Manila is not exactly a lean, non-polluted city, but that did not stop the ADB from being hosted there.

China, the proponent of the AIIB, will most likely be the strongest shareholder. If Beijing should not be the headquarters, then let the shareholders decide.

This would, in fact, give the image that the AIIB is not a Chinese-dominated bank, unlike how the United States dominates the World Bank.

Third, the impression from the writer’s argument about Hong Kong’s democratic moves is that democratic change should not be a reason behind the headquarter’s location.

If the AIIB is to project the image of a non-Washington style of governance, then no single city should be excluded. And the argument is again puzzling given that cities that host regional development banks are not just in stable cities or countries.

Singapore is a strong centre where the AIIB may be headquartered, but it should not be the only host city for this new development bank.

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