The Beginning Of The AIIB Epoch

The Beginning Of The AIIB Epoch by Dan Steinbock, Difference Group

For years, the G7 nations have pledged substantial governance reforms in international multilateral institutions, such as the International Monetary Fund, the World Bank and the Asian Development Bank. But the promises were left unfulfilled, not least because these organizations are dominated by American, European and Japanese interests, as reflected by their voting quotas, investment allocations and the nationalities of their leaders.

In this context, the China-proposed Asian Infrastructure Investment Bank represents the needs of emerging countries which have been failed by the international multilateral institutions that were created and remain frozen in the mid-1940s.

In the fall of 2013, Chinese leaders proposed the establishment of the AIIB. In June...