JAYAN JOSE THOMAS
April 7, 2015
With even U.S. allies scrambling to get on board the AIIB, China looks set to lead the global economy.
China appears to be on course to reset the existing global economic order dominated by the West. The setting up of the Asian Infrastructure Investment Bank (AIIB), a multilateral financial institution, is a significant step in this direction, challenging the long-held dominance of the Bretton Woods system.
Formed largely with Chinese capital and initiative, AIIB aims to fund infrastructure projects across Asia. Indications are that this new multilateral bank could rival the World Bank and other long-standing international institutions established by the U.S. and its allies.
AIIB will have a subscribed capital of $50 billion, which will eventually rise to $100 billion. In comparison, the subscribed capital of the World Bank and the Asian Development Bank (ADB) are $223 billion and $165 billion respectively.
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