The world order is shifting.
Historians may well look back at 2015 as a year punctuated by some significant moments in this global rebalance.
America has received a bloody nose.
At midnight, Beijing time, on Tuesday, China announced that no less than 46 countries had applied to be founder members of China’s rival to the World Bank, the Asian Infrastructure Investment Bank (AIIB).
Ever since China’s powerful President Xi Jinping announced the formation of the new lending bank, US President Barack Obama’s diplomats have been doing all they can to persuade countries not to join up.
The AIIB is a direct challenger to the US-led World Bank’s supremacy.
Its purpose is to provide much needed investment in across Asia.
Economists reckon that for Asian countries to hit their true economic potential, a whopping $1tr will need to be ploughed into the region every year for the next 10 years.
Money from the bank will build roads, railways, mobile phone networks, airports and more.
So why the objection by America? Ostensibly, they said they were concerned about governance, accountability and transparency within the institution… see more