How China is reshaping global development finance
Thursday, November 20, 2014
The BRICS Development Bank, the AIIB and the Silk Road Fund – recent initiatives spearheaded by China that symbolize its growing influence in development funding and potential new sources of financing, says Rajiv Biswas.
Over the past couple of months, China has played a major role in launching initiatives to increase infrastructure financing for developing countries. In July 2014, China, together with the other BRICS nations – Brazil, Russia, India and South Africa – agreed to create a new development bank (NDB) that would have initial capital of 50 billion USD.
More recently, in October, 21 Asian countries agreed to establish a new Asian Infrastructure Investment Bank (AIIB) for which China will provide up to 50 percent of initial capital. The bank’s aim is to provide funding for infrastructure projects such as roads in underdeveloped Asian countries. Just last week, at the APEC Leaders Summit in Beijing, President Xi also announced the creation of a new Silk Road Fund to improve connectivity in Asia, for which China will provide USD 40 billion of capital funding.
Source: DW (link opens in a new window)