Abstract
The BRICS New Development Bank (NDB) and the Asian Infrastructure Investment Bank (AIIB) share some similar features. They are initiated and created by emerging economies and promote infrastructure investment and global governance reform as two institutional mandates. However, their operational modalities and approaches are different. NDB is a borrowing-country-led multilateral development bank (MDB); while AIIB’s operation is donor-country-oriented.
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Notes
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There are a lot of misjudgments about these two banks; most of them think AIIB is more effective than the NDB. In the first two years, AIIB now has 84 members, projects worth 4.2 billion dollars, and AAA credit ratings from the big three international credit rating agencies, while NDB has only five members, projects worth 3 billion dollars, and AAA credit ratings from the big three China domestic credit rating agencies. From different operational modalities perspective, both AIIB and NDB have their advantages and disadvantages.
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- 3.
“Report on the Articles of Agreement of the Asian Infrastructure Investment Bank”, Explanatory Notes, Article 13, Paragraph 4.
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“Articles of Agreement of the Asian Infrastructure Investment Bank”, Article 13, Paragraph 8.
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Zhu, J. (2020). Two Approaches to Institutionalizing the New Development Assistance: A Comparative Analysis of the Operational Institutions of NDB and AIIB. In: Jing, Y., Mendez, A., Zheng, Y. (eds) New Development Assistance. Governing China in the 21st Century. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-7232-2_5
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