When I read the story of the appointment of Jim Yong Kim as the President of the World Bank for another five years, I realised the enormous parallels to the emergence of Donald Trump. In 2009, there was much realisation of the need for greater representation to emerging economies in the governance of international financial institutions.
Like the failure of monetary policies to revive growth, there has been a failure to deliver on those promises. Seven years later, IMF is headed by a European and the World Bank is headed by an American appointee. The international sovereign elites have gone back on their promise, just as elites pocketed the benefits of globalisation to themselves in the developed world, leaving resentment and bitterness in its wake.
The result is that countries are going it alone. China has formed the BRICS Bank and the Asian Infrastructure Investment Bank. Of course, China needed no excuses. It might have gone ahead and formed these institutions, regardless. But, clearly, the West gave them perfect excuses on a platter. The formation of BRICS Bank and AIIB has parallels with the emergence of Donald Trump in the US domestic politics.
There is a failure of the elites and there is a response. How silly it is to bemoan the response and not blame the elite failure for causing it?