The Asian Infrastructure Investment Bank (AIIB) will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan. The $100 billion in capital is double that originally proposed, the Financial Times (FT) reported. A member of the World Bank, China has less voting power than countries like the US, Japan, and the UK. It is in the ‘Category II’ voting bloc, giving it less of a voice. In the Asian Development Bank, China only holds a 5.5 percent share, compared to America’s 15.7 percent share and Japan’s 15.6 share. At the International Monetary Fund, China pays a 4 percent quota, whereas the US pays nearly 18 percent, and therefore has more influence within the organization and where loans go. “China feels it can’t get anything done in the World Bank or the IMF so it wants to set up its own World Bank that it can control itself,” the FT quoted a source close to discussions as saying.Oh yeah and this kind of move is what got Ghaddifi killed. Don't believe the "Human rights" hype. Difference is that the US and NATO can't go bombing China.
Thursday, June 26, 2014
Western dominance in the financial system will soon end. They really played themselves when they got Visa and Mastercard to stop taking transactions for Russians over the issue in Ukraine. I know it is not the World Bank but it is reflective of the goals and aims of those who run it.