GDP | Global Development Perspective
Policy Brief No. 16.018
July 7, 2016
The AIIB’s Concept for Development and Financing:
Putting Global Value Chains to the Fore
What is the difference between the Asian Infrastructure InvestmentBank (AIIB) and other currently existing developmentand financing institutions? In this author’s view, the basicdifference lies in their concepts and positioning.One view holds that, different from the World Bank and the AsianDevelopment Bank (ADB), which are committed to poverty-reduction, theAIIB prioritizes infrastructure investment and giving support to economicand social development in Asian countries. Yet, as a matter of fact, allmultilateral institutions for development and financing, in particular thoseinstitutions targeted at aiding developing countries, provide pivotal servicesfor infrastructure construction. For instance, the ADB focuses 60 percentof its loans on infrastructure such as transportation, and communication,energy and water conservancy facilities. And the proportion of loansextended for infrastructure by the World Bank accounts for almost50 percent. This view holds that if we take into the consideration theabundant capital owned by these financial institutions, then, the AIIB isnot special anymore as its functions or positioning are concerned.
What Is the Reason?
How Could Nepal Integrate with the Global Value Chains?