Writing for Project Syndicate, Jim O’Neill, best-selling author of “The Growth Map” (2011), argues that the US has “to make space for China…[and] accept its heightened global role.”
This comment follows from the UK’s agreement to become a founding member of the China-led Asian Infrastructure Investment Bank (AIIB), and the ensuing friction this caused with the US. However, Jim argues that “America’s reluctance – and that of France, Germany, and Italy – to give the emerging powers an appropriate voice in the established international financial institutions is counterproductive.”
China’s $10 trillion economy is bigger than those of France, Germany, and Italy combined. Jim explains that “for anyone who wants to engage in global trade, it is thus vital to identify what China wants.” He suggests that a “new G-7 needs to be created within the G-20, thereby providing China with a degree of influence that reflects its economic weight and requires it to assume a commensurate proportion of global responsibility.”
Jim goes on to warn that opposition to this would “risk accelerating the decline of the established international financial institutions.”
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