The Conversation

As the U.S. under Donald Trump retreats from international institutions, the World Bank and other multilateral development banks might have good reason to fear losing their most important backer. Could that be the end of the rules-based global economic order – or a step toward a new establishment dominated by China?

The Asian Infrastructure Investment Bank, a China-led institution launched nine years ago to fund infrastructure and development projects, has operated largely within the norms of existing financial institutions. If Washington withdraws from the world’s multilateral financial institutions, the AIIB could step in to fill the gap – and, in doing so, reshape global economic leadership.

A deeper look at AIIB reveals a paradox. While the institution was created by an illiberal government, it has positioned itself as a champion of multilateral cooperation, following international development standards and cofinancing projects with the World Bank and other major financial institutions.

With a growing portfolio of projects and a membership spanning 110 countries containing more than 80% of the world’s people, the AIIB’s influence is already significant. And as Tamar Gutner of American University explains, the Trump administration could leave the AIIB claiming the mantle of global financial leadership.