China’s Global Governance Challenge

China is preparing for a broader role in leading Asia on economic development and world affairs. The nation has long been an active member of global organizations including the United Nations, the World Trade Organization and others, and now is “engaged in global institution building of its own” with the Asia Infrastructure Investment Bank, or AIIB, writes Stephen S. Roach, author, former chairman of Morgan Stanley Asia and a Yale faculty member. “China faces a steep learning curve as it attempts to integrate institution building into the global policy architecture.” The AIIB has 57 founding members, and its success depends on the collective buy-in, acceptance of operating procedures, transparency and trust, as well as representation in voting and compliance measures. Roach concludes that AIIB founding members will outline infrastructure priorities for Asia and have a rare opportunity to develop new standards on global governance best suited for the challenges of the 21st century. – YaleGlobal