Australia has agreed to join the new China-led infrastructure bank while it still has some concerns about the governance of the bank. As Prime Minister Tony Abbott and Australian Treasurer Joe Hockey said in a joint statement, “The government has discussed the AIIB extensively with China and other key partners inside and outside the region. Key matters to be resolved before Australia considers joining the AIIB include the Bank’s Board of Directors having authority over key investment decisions, and that no one country control the bank.”
China placed a deadline on countries for the end of March to become founding members of the bank. They have explained that the founder status would allow the country to have some say over setting rules for the bank. Australia actually came under pressure last year from Washington not to join the bank. Washington worried that, if not governed correctly, the bank could contribute to corruption.
However, as the deadline approaches, many US allies including those in Britain, Germany and South Korea have announced that they plan to join. Australia hasn’t said how much it plans to contribute to the bank, but it could be as much as $3 billion.