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GIF Faculty Management Unit. Source: Global Infrastructure Facility, ‘What is the GIF?‘, retrieved 8 December 2020, from https://www.globalinfrafacility.org/. Copyright 2016 by Global Infrastructure Facility
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Initiated in 2017 and formally established in 2020, the Multilateral Cooperation Center for Development Finance (MCDF) is the latest addition to the development finance landscape in Asia. This article provides an in‐depth analysis of MCDFʼs potential to offer additionality in development finance and its political legitimacy by comparing it to 18 de...
Citations
... Another move initiated by China in the field of multilateral development funding together with six MDBs is the Multilateral Cooperation Center for Development Funding, formally established in 2020 [66]. This institution, which is said to function as a bridge between the AIIB and the BRI, was proposed at the annual BRI Forum in 2017. ...
... Moreover, political leadership in the borrowing country may change, triggering renegotiations on loan conditions. Funding massive infrastructure projects is controversial, as infrastructure is said to be 'violent' due to economic and social concerns [66]. Although the AIIB, for example, has arguably been cautious not to commit itself to overly risky projects in its first operative years [1: 606], it has still financed projects categorised as 'risky' in Nepal. ...
The article explores connectivity from the prism of multilateral development banks. It recognises that theorising on connectivity is increasing, but as connectivity agency is less addressed, it aims to contribute to discussions on who the agents of connectivity are and how they contribute thereto. By analysing the Asian Development Bank (ADB) and the Asian Infrastructure Bank (AIIB) respectively, the article sets forth a three-dimensional agency: strategic, developmental and financial. This is in line with the multi-layered nature of the banks, which reflects the broader member states and key state interests. Next to their role as banks, they contribute to the understanding of development, in addition to which they represent key shareholder interests. The banks are both to be seen as nodes of connectivity and as active agents in realising connectivity for others.
The Belt and Road Initiative is an economic integration plan. But at regional level, the financial capabilities of route countries do not allow the implementation of the Belt and Road. This is the need for and creation of a new financial form. This study aims to theoretically justify a new financial form for economic integration—new type of over-the-counter derivative financial instrument. This adaptation addresses the case of the transport corridor ‘China–Mongolia–Russia’ and ‘resident status’ of the Joint Economic Zone that will serve as a guarantee for the financial assets of the Belt and Road companies and increase their financial sustainability and investment revival in regions. In general, this has a positive effect on the development of the accounting system and increases the financial and investment interests of business participants, which can lead to new forms of entrepreneurial activity and become a catalyst for improving the welfare of regions of China–Mongolia–Russia transport corridor, and it is in line with the goals and investment initiatives of the Belt and Road project.
