U.S. Concerned About Increased Japan Votes at adb

Washington views with concern a plan to increase Japan’s voting power at the Asian Development Bank (ADB), a U.S. Delegate at the bank’s annual meeting said.

Japan, which holds 15.1 pct of the ADB’s capital stock, and the U.S. Which holds 14.9 pct, currently have near-parity in voting power.

“The ADB was set up in 1966 as a partnership between the U.S. And Japan,” the official said. “Any change in that relationship would transmit a psychological message to this region’s countries that there is a slackening of interest on the part of the U.S.”

“We do not want any dilution of our influence in the organisation,” the U.S. Official added.

He said an imbalance in procurement contracts awarded for ADB-funded projects was however improving slowly.

The U.S. Share of the contracts had grown from about seven pct to about 12 pct in 1986, the official said, while Japan’s share had dropped from 25 pct to 20 pct.

“We will urge more U.S. Businessmen to join in the bidding for these projects,” he said.

The official said Washington was concerned about the ADB’s future role in the region.

“The U.S. Believes the ADB should act as a catalyst both for policy changes that will lead to sustainable, long-term economic growth and for other financial flows,” chief U.S. Delegate Charles Dallara told the meeting earlier.

“Economic reform should be a theme of the ADB’s lending,” the unidentified U.S. Official said.

“The bank is doing its borrowers a disservice by not entering into policy dialogue,” he added.

“We are looking for the bank to take up the cudgel when its borrowers are at a critical stage in their development. We are looking at a 15 or 20 year horizon.”