Former US central banker, Ben Bernanke blamed the US Congress for pushing China to form AIIB. Bernanke, who pioneered many central bank stimulation measures during the last decade, was speaking in Hong Kong.
The US Congress is stalling the 14th quota reforms which were passed in 2010 by the IMF members. Major package of the quota revision was increased quota and voting shares for the emerging countries, especially, Russia, China and India. This means a corresponding marginal decline in US and European quota shares.
The quota reform is to be ratified by the US, as it has a veto power in the Fund. Any critical decision should get at least 85 percent vote in the IMF where the US has marginally over 16 percent votes.
In the IMF, the voting power and size of loan for a country depends upon quota subscription.
The AIIB became a megahit concept among those who were in despair after the US Congress continued blocking of IMF reforms. Even many fans of West and the US led Brettonwoods system joined the Beijing led AIIB, sending shockwaves in the US government.
India has joined as a founder member. Evergreen US ally, UK has intimated its consent to join the Shanghai based entity that marks the arrival of China as the leader in global financial architecture.
The US officials often secretively acknowledged that it was the long term prospects of the US losing its veto power in the IMF that tempted the Congress to throw away the reform measure that was cherished by most developing countries.
But this is for the first time that a former US government associate is openly blaming the Congress for its adamant policies that created disinterest in the IMF by the emerging world.