The AIIB’s success doesn’t mean that China has deposed the US — but the game has only just begun.
As more U.S. traditional allies such as the United Kingdom, Germany, France, and Italy decide to join the China-led Asian Infrastructure Investment Bank (AIIB), people may start to wonder: Is this a sign that the U.S. is in irreversible decline?
By creating their own multilateral financial institutions, the BRICS emerging-market powers are shaking up global economic governance but remain far from dismantling the post-war system dominated by the West.
For the past 70 years, the International Monetary Fund and the World Bank have been the pillars of the world’s economic system, coming to the rescue of countries in trouble and supporting development projects, respectively.
China, the world’s second-largest economy, continues to have just slightly more voting power in the IMF than Italy, about five times smaller.
And, since their creation in 1944, the IMF and the World Bank have only been led by Americans and Europeans. Continue reading