Your support helps us to tell the story
In my reporting on women's reproductive rights, I've witnessed the critical role that independent journalism plays in protecting freedoms and informing the public.
Your support allows us to keep these vital issues in the spotlight. Without your help, we wouldn't be able to fight for truth and justice.
Every contribution ensures that we can continue to report on the stories that impact lives
Kelly Rissman
US News Reporter
China's biggest success was the announcement that, from now on, the heads of the IMF and the World Bank will be chosen on merit instead of being the exclusive property of the US and Europe as at present. It has been something that China, along with India, Brazil and other emerging countries, have long pressed for. Now they have it. Moreover, while the G20 was not in a position to reform IMF voting rights itself, Gordon Brown did assure China and the others that the institution would soon set about implementing the reform.
In exchange, China has agreed to put in $40bn of additional funds into the IMF's coffers to help the poor and the victims of recession. It was less than some had hoped. And it is less than the $100bn being committed by the European Union and Japan. But it gives some idea of the relative weighting that China may, in time, achieve in the Fund.
But the biggest change is the extent of China's participation in international affairs and its willingness to see transnational institutions play such a part in the new world order. Not that China does not have its own views, quite distinct from others. Only two weeks ago, its central bank chief published a paper urging the creation of a new world reserve currency by expanding the IMF's special drawing rights, a development clearly aimed at lessening the world, and China's, dependence on the US dollar. While Beijing has agreed to boost the IMF's resources, it has also made it clear that it remains interested in bilateral deals, completing half a dozen currency swap arrangements in recent months.
Agreement to co-operate does not mean a pooling of sovereignty. China, as the West knows from a host of issues from Tibet to its continued currency manipulation, remains a nation determined to pursue what it regards as its own interests. The idea that the G20 may now, as some have argued, be replaced by a G2 of the US and China does stand up to close examination. That is not how Beijing sees its role or its spheres of influence. But in extending its reach this week, China has shown itself ready to take its place at the top table of global economic governance. Interesting times, indeed.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments