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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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    Cited by:

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    4. Gregory T. Chin, 2024. "Introduction – The evolution of New Development Bank (NDB): A decade plus in the making," Global Policy, London School of Economics and Political Science, vol. 15(2), pages 368-382, May.
    5. 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.
    6. Bert Hofman & P. S. Srinivas, 2024. "New Development Bank's role in the global financial architecture," Global Policy, London School of Economics and Political Science, vol. 15(2), pages 451-457, May.
    7. 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.
    8. Ascher, William, 2021. "Rescuing responsible hydropower projects," Energy Policy, Elsevier, vol. 150(C).
    9. Breczko, Agata & Zavaleta Hernández, Sandra Kanety, 2024. "The IMF's Return to Latin America: Build forward Better?," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 77(1), pages 37-62.
    10. 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).
    11. Alvaro Mendez, 2024. "Latin American agency: The New Development Bank, Uruguay's accession and Brazilian influence," Global Policy, London School of Economics and Political Science, vol. 15(2), pages 405-413, May.
    12. 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.
    13. 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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