A developing nation version of the World Bank was formally agreed this week two years after India proposed the idea to Brazil, Russia, China and South Africa. Yet even as the five governments hailed its formation, there were questions about whether four of them might simply be paying to move from U.S. financial hegemony to dominance by another economic superpower: China.
India ensured a sense of parity with its insistence that each of the countries behind the New Development Bank contribute equal shares of $10 billion to its initial $50 billion capital. Like the World Bank, the new institution plans to fund development projects in poor countries.
But India failed in its bid to host the new bank’s headquarters in New Delhi. It will be located in Shanghai instead.
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Kay Johnson, Associated Press via CHINA US Focus http://ift.tt/1lcg5L0
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