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    World Bank Feels Push to Reform in Response to New Chinese Rival

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    China's World Bank: Opportunity or Threat? (57)
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    Speaking at the Boao Forum for Asia, World Bank Vice-President Cyril Muller announced that the new China-led bank has caused a push for reform, but denied that internal tensions have resulted.

    An executive of the World Bank Group announced on Sunday that the organization is experiencing a push for reform with the emergence of the new Chinese bank, but that it has not caused tension between China and other countries within the organization.

    "We are getting a strong push to change quickly," Cyril Muller, vice president of the World Bank Group, said at the annual Boao Forum for Asia.

    Despite US pressure against joining China's Asian Infrastructure Investment Bank (AIIB), the United Kingdom joined on earlier in March and Australia signed up on Sunday, after being pressured to pass up the opportunity in 2014. Russia announced the decision to join the new bank on Saturday, after initially taking a neutral approach.

    "There are groups that blend these sets of interests and this helps build consensus and understanding," Muller said, objecting to the idea that there is emerging tension between China on one hand and the US, Japan and Europe on the other.

    "Each of the world's [major financial institutions] learn from each other and I pretty much share the view that starting with a clean sheet of paper is a good idea," he added.

    The AIIB is an international financial institution which was established in 2014 at the behest of the Chinese government.  Beijing wants to see the bank operational before the end of this year. The authorized capital is expected to total about 100 billion dollars.

    The AIIB includes 27 prospective founding members; Australia, Britain, Germany, France, Italy, Russia, Switzerland and Luxembourg recently indicated their intent to join the bank. The deadline is due to expire on March 31.

    The AIIB is seen by some as a rival to the International Monetary Fund, the World Bank and the Asian Development Bank, which are dominated by developed countries like the United States and Japan.

    In light of this, US Treasury Secretary Jacob Lew said last week that America’s “international credibility and influence” is under threat as China seeks to set up the AIIF and draw support from staunch US allies.

    Topic:
    China's World Bank: Opportunity or Threat? (57)

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    Tags:
    Asian Infrastructure Investment Bank (AIIB), World Bank, Cyril Muller, Boao, China
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