But the decision to stay away from the AIIB could become costly—it could mean that Japanese firms are locked out of bidding for AIIB-funded development projects, for example.
A lack of participation by Japan would also deprive the AIIB of the expertise the country has acquired throughout the years, especially through its own work with the Asian Development Bank (ADB). The Japanese-dominated ADB, which was created in the late 1960s, states as its goal the eradication of poverty in Asia through projects related to infrastructure and health care.