AIIB: Is China creating a new world bank?

Students

2021
College

Faculty

Assistant Professor

Project Summary

Named “AIIB: is China Creating A New World Bank,” this research dissects the mechanism of the newly formed Asian Infrastructure Investment Bank (“AIIB”), its approved projects since formation, and its similarities and differences with existing Multilateral Development Banks (“MDBs”) such as the Asian Development Bank (“ADB”) and the World Bank (“WB”).

 

To begin with, the research takes a thorough look at all approved projects and makes them into one data sheet that summarizes all key points, including not only qualitative information such as objective, risk, environmental and social category, co-financer, etc., but also quantitative metrics such as loan amount, term and rate, economic rate of return, net present value, etc.

 

Then, a careful study of the bank’s operational policies is performed, along with a cross-analysis with those of existing MDBs. Specifically, different banks’ loan term & interest arrangement, risk rating framework, and environmental & social category framework are studied. In addition, there is a comparison study focusing on WB and AIIB’s projects on Bangladesh’s energy sector.

 

My first time doing research in an academic environment, my research on the AIIB project taught me how to effectively pinpoint key information as well as organized important metrics. I also become much more adept in comparing and contrasting with a critical mind. Growing up in China, I’m keen on learning something new about my mother country and more importantly, looking at it from another perspective. A research on AIIB allows me to view China from a combination of approaches: financially, diplomatically, economically, as well as politically. On a higher end, this summer’s experience sheds light onto how academic research works, and further informs me on my choice of future academic path.