Established Bretton Woods IFIs vs emerging AIIB affiliates

Chapter Six compares the emerging China-led emerging development financing with the established Bretton Woods institutions. Today, DFIs should make reform to manage the infrastructure investment gap. These reforms concern bankability, sustainability, inclusive, and quality infrastructure. This chapter discusses cooperation and potential conflicts of interest between the established and emerging IFIs. The world debt and debt sustainability are grand challenges for this century. Particularly, many OBOR recipient countries have suffered from heavy debt burden and financial risks. Even in China, massive infrastructure investments lead to heavy debt load. Further examination finds that the OBOR initiative aims to export China’s development model--trade surplus, excess investment, and oversupply of currencies. Thus, as many observers have noticed, the OBOR—as China’s global expansion strategy—interweaves political, economic, and military ambitions. Instead of promoting industrialization and development in the developing world, China’s infrastructure-driven development model is criticized for lack of investment efficiency and sustainability.