Francesco Sisci responds to Angelo Codevilla: If we don’t like what China is doing, why don’t we offer our own solution?

Perhaps Angelo Codevilla is little too hasty on this.

If the move of the AIIB was hostile why did China invite the U.S. to participate in the AIIB iin the first place? Why has an American citizen been asked to serve on the board of the new bank? But yes, these could be part of an elaborate deception – as Codevilla contends.

Yet, as I tried to say, there are larger issues raised by the creation of the AIIB: the legacy of the Bretton Woods agreement isn’t holding up. To put it in clearer terms: in 1944 the U.S. accounted for more than 50% of global GDP. Now, it is about 20% and its share will be shrinking. That does not mean that the US will stop leading the world. But leading with 50% of GDP is very different from leading with 20% and less. Can Bretton Woods hold up with the fact that the U.S. might be one day 10% of the global GDP or less?

The globalization process started by the U.S. has taken on a life of its own, and the trend towards delocalization, powered by easier telecommunications and so forth isn’t likely to end anytime soon.

The U.S. and some in the West don’t like the AIIB? We should say how we would like to change it. But just opposing it will simply not fly and will put the U.S. in an increasingly awkward position. We don’t like the Chinese tampering with the Bretton Woods legacy? We should change it ourselves and pre-empt their moves.

Otherwise, I am afraid we will help to create the conditions for our own destruction – and create (and feed) our enemies.

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(Copyright 2015 Asia Times Holdings Limited, a duly registered Hong Kong company. All rights reserved. Please contact us about sales, syndication and republishing.)