China’s AIIB proves capable contender to the World Bank

While global capital has retreated from emerging markets, China has moved in, filling in gaps in infrastructure lending across the developing world, often to the chagrin of established multilateral lenders like the World Bank. The Economist, a London-based magazine, argues below that this is a good thing. Large projects in Bangladesh, Tajikistan and Indonesia led by Beijing’s Asian Infrastructure Investment Bank (three of its first four projects) aren’t being done in a vacuum, as skeptics feared they would, but rather with the cooperation of existing institutions. The result can only be a more certain shift of the world’s focus of power towards the East.