New bank a challenge for Bretton Woods

Emerging economic powers such as China, India and Brazil have long been demanding greater share of votes in multilateral development institutions like the World Bank, International Monetary Fund and the Asian Development Bank to reflect their recent phenomenal growth. China's economy is expected to grow to $10 trillion this year, yet its share of votes in the Bretton Woods institutions is only 3.72 percent, compared with 17.4 percent for the United States.

The existing situation is frustrating for emerging economies, because less voting power means less say in deciding where funds from these institutions should go. Also, most developing countries are unhappy with the unfair conditions imposed on them by the Western powers.

Unwilling to accept the status quo and answering critics, especially the US, that have long argued that China assume greater global responsibilities in areas like climate change and arms proliferation, President Xi Jinping surprised his Indonesian hosts during a state visit last year by initiating the formation of the Asian Infrastructure Investment Bank.