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The new architects: Brazil, China, and innovation in multilateral development lending
Author(s) -
Serrano Oswald Omar Ramon
Publication year - 2018
Publication title -
public administration and development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.574
H-Index - 44
eISSN - 1099-162X
pISSN - 0271-2075
DOI - 10.1002/pad.1837
Subject(s) - negotiation , staffing , investment banking , china , novelty , investment (military) , financial innovation , business , economics , political science , finance , management , politics , philosophy , theology , law
Summary Recent academic works have shed light upon the motives and negotiation dynamics leading to the creation of the New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB). We know less about their day‐to‐day activities and if (and if so why) they are being innovative in the field of multilateral development lending. This article evaluates novelty in the two banks. It uncovers and suggests an explanation to the puzzle of why the NDB appears more innovative (in terms of institutional design, staffing, and lending policy guidelines) than the AIIB by exploring the cases of China and Brazil. The two countries played central roles in the set‐up of each the AIIB and NDB. Drawing on extensive field research, the article proposes that their preferences and capability to engage in institutional innovation depend on interests, status, economic power, and regulatory capacity.