“Now, the AIIB has become a major partner in Rody’s ‘Build, Build, Build’ infrastructure program and even his social programs.”

Part of Dutertenomics or the economic roadmap of President Rody Duterte is embracing the China-backed Asian Infrastructure Investment Bank (AIIB) that the previous administration under President Noynoy Aquino flip-flopped about becoming a member.

The Philippines nearly missed the boat in being a founding member of the AIIB, which is crucial in having clout in the new multilateral lender, just because the United States was apprehensive about joining AIIB.

The US questioned the newly formed AIIB as it doubted the integrity of the institution, citing China’s record of loans to unstable governments and the country’s funding of unnecessary infrastructure.

The reality, however, was the US considers the China-led lender as a potential rival to institutions which it strongly influences such as the World Bank and the Asian Development Bank (ADB).

It also suspects China will use the bank to set its global economic agenda to challenge US hegemony.

It was only when Rody took over the presidency that the government cleared all hurdles, including a Senate ratification, for the AIIB membership.

Now, the AIIB has become a major partner in Rody’s “Build, Build, Build” infrastructure program and even his social programs.

Finance Secretary Carlos Dominguez, who is in Mumbai, India for the AIIB annual meeting, said AIIB loans are being explored for projects that focus on improving the delivery of health care and education in line with the Duterte administration’s goal of human capital development.

AIIB financing will be proposed for health care facilities, school buildings and rural roads.

The AIIB, thus far, has financed one project in the Philippines, the Metro Manila Flood Management Project Phase 1 (MMFMP1), in which it partnered with the World Bank.

Noynoy balked at seeking AIIB membership mainly due to his subscription to American skepticism on the new body.

Among AIIB’s maiden projects was the funding of China’s One Belt, One Road thrust that supports infrastructure development of countries which were part of the historic Silk Road. The AIIB infused an initial $160 billion for it.

Among the reasons or excuses given by former Finance Secretary Cesar Purisima for the long period of review the administration of Noynoy took that stalled the AIIB membership was the “process of determining if China will use the AIIB to advance its own economic or strategic agenda.”

Purisima said China has “unpopular loan or procurement decisions.”

The waffling over AIIB was unjustified since even Britain signed up as a founding member of the Shanghai-based investment bank, along with France, Germany and Italy.

Investment banker Jim O’Neill said Washington’s opposition to AIIB is “embarrassing” and “idiotic” which would have been his same assessment on the position of the previous Aquino regime.

As of last April, the AIIB board has approved financing for 26 projects across Asia to be financed by the bank, amounting to around $4.52 billion.

The economic plan of Rody is similar to his independent foreign policy of diversifying relations with non-traditional partners.

Regional economic publication Nikkei Asia Review described the Dutertenomics gameplan as shrewd. “Unlike Indonesia and Thailand, it has not let its infrastructure projects turn into nerve-wracking contests between China and Japan,” Nikkei said.

Instead, it said Dutertenomics secures benefits from all possible sources.

For instance, in the railways sector, the northern lines have been offered to Japan and the southern segment to China.

Nikkei also noted the change in policy from Noynoy’s strict adherence to the Public-Private Partnership (PPP) scheme to diversification of funding to include significant loans from Japan and China along with multilateral lenders, speeding up government projects.

Its focus on Filipino welfare above any other interests makes Dutertenomics work.