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Dynamics of Institutional Proliferation in Financing for Development: The birth of the AIIB

Abstract

Using the case of the newly launched Asian Infrastructure and Investment Bank (AIIB), this article aims to uncover possible dynamics driving institutional proliferation in the global development landscape. These dynamics include the Global South’s growing desire to participate in international financial management, the existing finance gap requiring a multilateral solution in the face of market failures, the demand for more effective development institutions, the need to deal with massive infrastructural challenges, and supplier countries’ potential pursuit of their national interests over development institutions. The article also explores policy implications of these dynamics in terms of the global development regime.

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Notes

  1. For the taxonomy of Johannes Linn on the pillars of international financial architecture, see Linn (2013).

  2. The Bank’s votes here refer to the votes in International Bank for Reconstruction and Development (IBRD). Based on the author’s own calculation in 2015 based on the IMF and World Bank sources.

  3. This is a comparative insight that I remember from an online article.

  4. I would like to thank Hasan Selim Özertem for bringing my attention to this point. In this last footnote, I also would like to thank both Hasan Selim Özertem and Sarah Sklar for reviewing this article and extending their helpful feedback.

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Correspondence to Mehmet Hecan.

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Hecan, M. Dynamics of Institutional Proliferation in Financing for Development: The birth of the AIIB. Development 59, 158–166 (2016). https://doi.org/10.1057/s41301-017-0072-2

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  • DOI: https://doi.org/10.1057/s41301-017-0072-2

Keywords

  • International development
  • Development finance
  • Multilateral Development Banks (MDBs)
  • Asian Infrastructure and Investment Bank (AIIB)
  • BRICS
  • Global South
  • Bretton Woods Institutions