A New Model of Multilateral Development Bank: a Comparative Study of Road Projects by the AIIB and ADB

The World Bank, under the stewardship of the United States, stands out as the global leader among international development organizations. Does China's establishment of the Asian Infrastructure Investment Bank (AIIB) undermine this status? Examining this question, we focus on the borrowing practices of a special set of countries: the founding members of the AIIB. These founders openly defied the public preference of the United States, arguably to create a potential rival to the World Bank. Using a new causal inference method, Pang, Liu, and Xu's Dynamic Multilevel Latent Factor Model—as well as several well-known estimation models as robustness checks—we document at least a temporary decrease in the number of World Bank infrastructure projects that the developing AIIB founders have entered into. This study presents the first systematic evidence that China's AIIB could unsettle the political influence the United States has enjoyed over developing countries through its leadership of the World Bank. An important set of countries may be parting ways with the World Bank and looking to a Chinese institution for leadership in the world of development.

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“…28. Zhao, Gou, and Li 2019. 29. List at "Project Summary," AIIB <https://www.aiib.org/en/projects/summary/>, accessed 30 March 2022.…”

Section: Aiib Founding Membersmentioning

confidence: 99%

The Impact of China's AIIB on the World Bank

Qian

Vreeland

Zhao

2023

Int Org

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“…We identify three predominant views in the specialized literature regarding how the emergence of this bank has affected the current international financial order: (1) those that see the emergence of the AIIB as copying the characteristics of other institutions with few innovations (Gransow & Price, 2019; Hameiri & Jones, 2018; Kellerman, 2019); (2) the ones that understand the AIIB as an instrument of Chinese foreign policy, with the potential to internationalize its development model within the current liberal order (Beeson & Xu, 2019; Liang, 2021; Stephen & Skidmore, 2019); and (3) some who consider the emergence of the AIIB to be a ‘middle way’, internalizing some international standards but with innovative characteristics, with room for cooperation and complementary actions between the AIIB and existing MDBs (Gabusi, 2019; Liang, 2021; Lichtenstein, 2019; Shelepov, 2017; Wang, 2017; Zhao et al, 2019; Zhu, 2020).…”

Section: The Aiib In the Multilateral Development Finance Systemmentioning

confidence: 99%

“…(3) some who consider the emergence of the AIIB to be a 'middle way', internalizing some international standards but with innovative characteristics, with room for cooperation and complementary actions between the AIIB and existing MDBs (Gabusi, 2019;Liang, 2021;Lichtenstein, 2019;Shelepov, 2017;Wang, 2017;Zhao et al, 2019;Zhu, 2020).…”

Section: R E S E a R C H A R T I C L Ementioning

confidence: 99%

“…These findings suggest that compared to existing MDBs, the AIIB has simplified the ESA instruments and risk analysis, making things clearer. An exciting avenue for research is analysing whether the AIIB safeguards the risks of greatest concern, while enjoying greater efficiency in terms of project operations, as Zhao et al (2019) argue. All of these observations point to innovations introduced by the new bank, mainly its emphasis on infrastructure, loans for projects of various sizes and greater risk, different ESA instruments, and more respect for, and integration with, the borrower's PPPs, and its reduction in the complexity of the socio-environmental analysis instruments.…”

Section: Mitigation Measures Proposalmentioning

confidence: 99%

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A comparative analysis of the environmental and social policies of the AIIB and World Bank

Júnior

Jukemura

2022

Global Policy

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This paper presents a comparative analysis of the environmental and social policies of the Asian Infrastructure Investment Bank (AIIB) and the World Bank. Our objective is to assess how the AIIB innovates in the international financial order in terms of Environmental and Social Assessment (ESA) instruments. We analyse projects financed by the two institutions in India between 2017 and 2020, considering both institutions' social and environmental standards. First, we compare the social and environmental guidelines of both financial institutions extensively. Then, we analyse 20 projects carried out in India during this period, considering the amounts invested, risk classification policies, and the adopted ESA instruments. Finally, we conduct two case studies analysing each organization's ESA instruments based on 10 parameters of comparison. We conclude that the AIIB portrays itself as a ‘middle way’ bank, with the internalization of some standards of the already established multilateral development banks (MDBs), but with several innovative characteristics. We identify the incorporation of some World Bank guidelines used in ESA instruments in AIIB projects. Nevertheless, the AIIB innovates through its focus on infrastructure, the variability of its project sizes, more integration with the borrower's national policies and programmes, and the simplification of socio‐environmental analysis instruments.

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“…Con el paso de los años, la banca multilateral se ha convertido en un mecanismo para facilitar el apalancamiento financiero a los Estados en busca de su desarrollo desde diversos frentes y momentos (Kellerman, 2019); de ahí que la Banca de Desarrollo Multilateral ha sido tradicionalmente importante, no solo por su papel como instrumento para apoyar el desarrollo, sino también por su rol anti-cíclico y catalítico, particularmente en períodos de crisis (Gnangnon, 2020). La banca multilateral moviliza recursos de los mercados financieros en forma eficiente, los cuales son direccionados a países en desarrollo que poseen condiciones favorables (Zhao et al, 2019); resaltando así la función de cooperación que ejerce el sistema en beneficio de los accionistas de esta banca, que son los países en vía de desarrollo, apalancados por los contribuyentes que son países desarrollados (Bautista, 2014).…”

Section: Revisión De Literaturaunclassified

Banca multilateral: incidencia en el desarrollo de las asociaciones público-privadas en Bogotá, Colombia

et al. 2022

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La banca multilateral es un mecanismo que fomenta la productividad y la competitividad de los Estados y las asociaciones público-privadas se han creado como alternativa para el fortalecimiento y apoyo de la gestión estatal desde el conocimiento y la experticia del sector privado. Este artículo tiene por objetivo identificar la incidencia de la banca multilateral en el desarrollo de las asociaciones público-privadas en la ciudad de Bogotá, Colombia. A partir de un alcance descriptivo, con análisis cualitativo y por medio de entrevistas semiestructuradas que responden a unas categorías orientadoras y ejes de indagación, se analiza la incidencia de la banca multilateral en el desarrollo de este tipo de asociaciones. Los resultados obtenidos evidencian que los representantes de las asociaciones público-privadas poseen percepciones positivas y negativas del protagonismo de la banca multilateral y de la manera en la cual estas organizaciones gestionan los recursos financieros obtenidos desde esta fuente. Se concluye la importancia, para la infraestructura del país y para el bienestar de la sociedad, del adecuado empalme entre la banca multilateral y las asociaciones público-privadas colombianas.

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A New Model of Multilateral Development Bank: a Comparative Study of Road Projects by the AIIB and ADB

Cited by 9 publications

References 14 publications

The Impact of China's AIIB on the World Bank

The Impact of China's AIIB on the World Bank

A comparative analysis of the environmental and social policies of the AIIB and World Bank

Banca multilateral: incidencia en el desarrollo de las asociaciones público-privadas en Bogotá, Colombia

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