Ex-French PM Explains Why IMF is Paralyzed, Lauds China-Led World Bank

Many global financial institutions, in particular the International Monetary Fund (IMF), are paralyzed due to inadequate regulation and an excessive number of members, former French Prime Minister Dominique de Villepin said Friday.

ASTANA (Sputnik) — The Washington, DC-based IMF was founded in 1945 and currently has 188 member states.

The establishment of the China-led Asian Infrastructure Investment Bank (AIIB) is an example of the opposite, de Villepin stated, speaking at an international conference held in Astana, Kazakhstan.

Participation in the founding of the AIIB by major European economies such as Britain, France and Germany indicates a desire to invest in a new, more nimble banking architecture, that can make joint strategic decisions quickly, de Villepin emphasized.

The announcement came after IMF Managing Director Christine Lagarde said on Thursday the fund welcomed the establishment of the AIIB and was ready to cooperate with it.

AIIB is an international financial institution created by the Chinese government to stimulate growth and attract investment in infrastructure projects in the Asia-Pacific region.

According to the AIIB website, there are currently 57 prospective founding members to the bank. It is expected to be fully established by the end of 2015.