The new development banks: conflicting independence or strategic partnerships?
The creation of two new development banks – the NDB and the AIIB – has motivated a debate as to whether they will affect the working of the existing development banks, and to whether they will contribute do foster economic development in low income countries. This article shows some differences between the two new institutions, present some estimate of their potential growth in the near future and argues that it is very likely that the two banks will – for both technical and financial reasons – work together with the existing development banks, rather than compete with them.
JEL Classification: E22; F21; F43; F53; F55; G24.
Keywords: Development banks infrastructure BRICS AIIB