The New Development Bank vs The Asian Infrastructure Investment Bank: A Comparative Perspective on Their Past, Present and Future

Abstract

The New Development Bank (NDB) and the Asian Infrastructure Investment Bank (AIIB) are two symbolic manifestations of the rise of emerging economies. These institutions not only represent these economies’ growing frustration towards the traditional governance structure of the extant institutions that have been slow in mirroring the changing configuration of relative capacities of national economies, but also reflect their growing determination to create additional channels in order to convey their financial capacity and views in the infrastructure development in the Global South. The chapter traces the diplomatic backgrounds of these institutions, highlights their similarities and differences on selected issues as stipulated in their respective official documents and presents a comparative analysis of their contrasting prospects of scaling-up in the future.