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

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  • Hongying Wang

Abstract

The creation of the New Development Bank (NDB) and the Asian Infrastructure Investment Bank (AIIB) has generated a great deal of attention and controversy in the development community and beyond. Do these banks indicate that China is promoting a new model of multilateral development finance that undermines the existing system dating back to Bretton Woods? What are the forces shaping China's policy choices in this area? In contrast to the prevailing tendency to view these banks as part and parcel of the same challenge or opportunity for multilateral development financing, this article highlights major distinctions between the NDB and the AIIB. The fact that China is playing a prominent role in both the NDB and the AIIB suggests that China is not promoting a coherent new model of multilateral development financing, but is instead straddling different traditions in this realm of global financial governance. The ambiguity in China's approach to multilateral development finance is shaped by its multiple identities and complex economic and political interests.

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  • Hongying Wang, 2019. "The New Development Bank and the Asian Infrastructure Investment Bank: China's Ambiguous Approach to Global Financial Governance," Development and Change, International Institute of Social Studies, vol. 50(1), pages 221-244, January.
    • Handle: RePEc:bla:devchg:v:50:y:2019:i:1:p:221-244
    DOI: 10.1111/dech.12473
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    References listed on IDEAS

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    Cited by:

    1. Ali Rıza Güngen, 2023. "New Multilateral Development Banks and Green Lending: Approaching Scalar Complexities in the Global South," Development and Change, International Institute of Social Studies, vol. 54(2), pages 251-279, March.
    2. Mingchun Cao & Ilan Alon, 2020. "Intellectual Structure of the Belt and Road Initiative Research: A Scientometric Analysis and Suggestions for a Future Research Agenda," Sustainability, MDPI, vol. 12(17), pages 1-40, August.
    3. Mihaela Papa & Raj Verma, 2021. "Scenarios for BRICS Evolution in Light of the India–China Conflict," Global Policy, London School of Economics and Political Science, vol. 12(4), pages 539-544, September.
    4. Salvatore Babones & John H.S. Åberg & Obert Hodzi, 2020. "China's Role in Global Development Finance: China Challenge or Business as Usual?," Global Policy, London School of Economics and Political Science, vol. 11(3), pages 326-335, May.
    5. Hongying Wang, 2021. "Regime Complexity and Complex Foreign Policy: China in International Development Finance Governance," Global Policy, London School of Economics and Political Science, vol. 12(S4), pages 69-79, May.
    6. Ascher, William, 2021. "Rescuing responsible hydropower projects," Energy Policy, Elsevier, vol. 150(C).
    7. Kaya, Ayse & Kilby, Christopher & Kay, Jonathan, 2021. "Asian Infrastructure Investment Bank as an instrument for Chinese influence? Supplementary versus remedial multilateralism," World Development, Elsevier, vol. 145(C).
    8. Hang Luo & Lize Yang, 2021. "Equality and Equity in Emerging Multilateral Financial Institutions: The Case of the BRICS Institutions," Global Policy, London School of Economics and Political Science, vol. 12(4), pages 482-508, September.
    9. Hannah C. Gabriel, 2024. "Bankruptcy and international intervention: The case of Addiko bank," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 32(1), pages 339-357, January.

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