Asian financial architecture today is still standing on the Bretton Woods system established in 1944 to regulate international finance in the aftermath of World War II. Since then, the U.S. dollar has become the preferred currency in cross-border transactions and central bank reserves, and the International Monetary Fund and the World Bank have taken on a central role in ensuring financial stability and promoting economic development in the region.
Asia's share of global gross domestic product has more than doubled since Bretton Woods, but its financial architecture -- network of private and public institutions and their regulatory frameworks -- is not commensurate with its economic development. As the U.S. continues to hold sway over the financial system, there is now a strong impetus for the region to take control over sources and funds for its own development, and to reshape the financial landscape in Asia.
