Lecture: Contesting the Liberal Script? The AIIB and World Bank in Development Finance.
Date: 11.06.2025
Time: 13:00 – 14:00
Place: Raum 1.110 THEO
Soo Yeon Kim
Associate Professor, Pacific Affairs School of Public Policy and Global Affairs, University of British Columbia
Associate Professor, Pacific Affairs School of Public Policy and Global Affairs, University of British Columbia
Abstract: Does the Asian Infrastructure Investment Bank (AIIB), formed through China’s initiative, contest the liberal script on development finance led by existing international financial institutions? This paper engages the important debate on the shape and trajectory of the liberal international order where China is increasingly playing a prominent role. The research problem focuses on how the AIIB conducts development finance and to whether they are aligned with the US-led World Bank. The analysis utilizes quantitative text analysis to examine project documents from the AIIB and World Bank, leveraging the rich textual dimension of their funding activities. The paper advances the argument that the AIIB’s funding priorities align with those of the World Bank, due to overlapping mandates, many co-financed projects, and China’s motivation for leading the formation of the AIIB. The analysis finds that the AIIB does not contest and is largely aligned with the liberal script of development finance in its funded projects. Project documents indicate overlap in how the AIIB and World Bank conduct lending and prioritize development objectives, including the application of equivalent environmental and social frameworks. The findings also indicate an emerging of a division of labor between the AIIB and World Bank. AIIB funding favors infrastructure projects that enhance connectivity in the transport and energy sectors, while World Bank funding emphasizes education, social policy, and other areas related to human development. The AIIB may well be expanding the “liberal script” of development finance, one that is tailored to the infrastructural needs of the Asian region.
Organizers:
Centre for Modern East Asian Studies (CeMEAS), Georg-August-Universität Göttingen, Heinrich-Düker-Weg 14, 37073 Göttingen, Germany, http://www.cemeas.de
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Chair of International Relations, Georg-August-Universität Göttingen,Platz der Göttinger Sieben 3, 37073 Göttingen, Germany, Prof. Anja Jetschke https://lehrstuhlib.uni-goettingen.de
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Chair of Development Economics, Georg-August-Universität Göttingen, Platz der Göttinger Sieben 3, 37073 Göttingen, Germany, Prof. Andreas Fuchs https://www.uni-goettingen.de/en/614556.h