The New Development Bank and the Asian Infrastructure Investment Bank: China's Ambiguous Approach to Global Financial Governance

2019 ◽  
Vol 50 (1) ◽  
pp. 221-244 ◽  
Author(s):  
Hongying Wang
Keyword(s):  
Infrastructure Investment ◽  
Development Bank ◽  
Investment Bank ◽  
Asian Infrastructure Investment Bank ◽  
New Development ◽  
Financial Governance

scholarly journals Institutional Innovation by the Asian Infrastructure Investment Bank

2018 ◽  
Vol 9 (1) ◽  
pp. 125-152 ◽  
Author(s):  
James RANSDELL
Keyword(s):  
International Organizations ◽  
Status Quo ◽  
Institutional Innovation ◽  
Project Finance ◽  
Infrastructure Investment ◽  
Development Bank ◽  
Investment Bank ◽  
Asian Infrastructure Investment Bank ◽  
Operational Policies ◽  
The Status

AbstractThe Asian Infrastructure Investment Bank [AIIB] is the world’s newest multilateral development bank [MDB] and already one of Asia’s largest international organizations by membership. This paper will compare the institutional structure of the AIIB with that of the Asian Development Bank [ADB] to identify areas in which the AIIB has innovated as a matter of international institutional law. In reviewing the constituent documents, bylaws, and operational policies of the two banks, the paper will juxtapose the AIIB and ADB’s approaches to membership, project finance, voting, and governance. It will identify not only innovations, but also the likely implications, positive and negative, thereof. Finally, it will assess the degree to which these innovations may impact the AIIB’s ability to partner with existing MDBs. In particular, the AIIB’s approach to project finance and governance mark a significant break from the status quo, while in other areas it has remained conservative.

scholarly journals Multilateral Banks’ Participation in Infrastructure Projects of the Eurasian Economic Union and in the Belt and Road Initiative in Central Asia

2020 ◽  
pp. 107-111
Author(s):  
Alexander S. Burnasov ◽  
◽  
Ksenia G. Muratshina ◽  
Keyword(s):  
Central Asia ◽  
Infrastructure Investment ◽  
Infrastructure Projects ◽  
Development Bank ◽  
Investment Bank ◽  
Asian Infrastructure Investment Bank ◽  
Strategic Value ◽  
Central Asian ◽  
International Banks

This article analyses the infrastructure projects in Central Asia, which are being financed by two major international organisations, two multilateral banks: the Eurasian Development Bank (EDB) and the Asian Infrastructure Investment Bank (AIIB). The article aims to evaluate the activity of these two institutions in the region and to compare their priorities and the probable efficiency of their projects for the development of Central Asian countries. The choice of the region for the study is conditioned by the fact that Central Asian states are Russia’s close neighbours, and the whole region is characterised by its critical strategic value for Russia’s foreign policy. The methodology of the study is based on the use of discourse analysis of the organisations’ documents, accessible for public: agreements, plans, reports, project-related documentation. In addition, the authors have monitored and analysed the relevant news archives of Russian and foreign mass media. The article consequently analyses the typology of both organisations through the lens of the international integration studies, the institutional structure of the EDB and the AIIB, the specific features of their functioning as international relations actors, and the actual infrastructure projects financed by these institutions in Central Asia. The study demonstrates that the policies and the priorities of the two international banks differ considerably. While the Asian Infrastructure Investment Bank prefers to finance the construction of roads and energy infrastructure, the Eurasian Development Bank remarkably credits production more and finances projects aimed at the industrial cooperation of Eurasian countries. Obviously, in the view of the long-term development, all areas of infrastructure expansion are worth financing; however, one can note that projects, approved by the EDB, can be characterised as more significant both at the present stage and in the long-term perspective. In addition, they contribute to the development of regional economic cooperation and Eurasian integration. If we look at the environmental and social safety of the infrastructure projects, the activities of the AIIB, regardless of its declarations on sustainable development, bear certain risks due to the existing cases of violation of environmental rules by the bank’s founder and major operator – the People’s Republic of China – in its infrastructure projects abroad. This circumstance highlights the critical importance of elaboration of national and multilateral mechanisms of control and inspection of major international infrastructure projects, as well as the necessity to fulfill the obligation of demanding their approval by the citizens of the recipient countries.

China will reshape development finance landscape

2015 ◽  
Keyword(s):  
Market Integration ◽  
Investment Strategy ◽  
Infrastructure Investment ◽  
Investment Bank ◽  
Content Type ◽  
Development Finance ◽  
Asian Infrastructure Investment Bank ◽  
International Financial Architecture ◽  
New Development

Subject The Asian Infrastructure Investment Bank. Significance Since July 2014, China has overseen the establishment of three development finance institutions: the New Development Bank ('BRICS bank'), the Silk Road Fund and the Asian Infrastructure Investment Bank (AIIB). As well as its geopolitical implications, this reshaping of the international financial architecture also represents a shift in the predominant model of development finance. The AIIB will grant Beijing greater influence over international finance, but it also compels China to develop a more financially sustainable, long-term foreign investment strategy through multilateral, transparent and rules-based mechanisms. Impacts China's domestic 'Go West' strategy and inter-provincial rebalancing will receive a significant boost. Regional bond market integration through the Asian Bond Markets Initiative will experience positive spill-over. The ADB will assume a role of providing technical expertise, and turn towards other priorities. China will simultaneously develop parallel development financing mechanisms to pursue more overtly political goals.

scholarly journals The Asian Infrastructure Investment Bank: A Qualified Success for Beijing's Economic Statecraft

2021 ◽  
pp. 186810262110469
Author(s):  
Kai Yin Allison Haga
Keyword(s):  
Infrastructure Investment ◽  
Net Income ◽  
Development Bank ◽  
Investment Bank ◽  
Asian Infrastructure Investment Bank ◽  
Economic Statecraft ◽  
Strategic Goals ◽  
Effective Instrument ◽  
Regional Influence ◽  
International Status

In 2013, China's growing economic capacities motivated Beijing to launch a multilateral bank to advance its diplomatic agenda. Scholars are still debating precisely what Beijing seeks to accomplish through the Asian Infrastructure Investment Bank (AIIB). This article surveys the key literature on the AIIB, identifying twenty scholarly interpretations of Beijing's strategic goals. The purpose of this research is to understand Beijing's initial design for this bank and evaluate whether this new multilateral development bank can function as an effective instrument for Beijing's economic statecraft. Over its first five years, as an economic tool for Beijing, the AIIB has performed quite remarkably well. The bank not only operates smoothly, generating a reasonable amount in net income for its shareholders, but also serves Beijing's strategic purposes in expanding China's regional influence, enhancing its international status, and ascending toward global leadership.

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