Open AccessThe New Asian Development Finance
Author(s) -
Karin Costa Vázquez,
Yu Zheng
Publication year - 2021
Publication title -
ids bulletin
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.25
H-Index - 46
eISSN - 1759-5436
pISSN - 0265-5012
DOI - 10.19088/1968-2021.119
Subject(s) - china , openaccess , finance , multilateralism , trade finance , sustainable development , corporate governance , economics , financial services , climate finance , international finance , international development , sustainability , business , economic growth , public finance , developing country , political science , politics , livelihood , macroeconomics , ecology , law , biology , agriculture
The recent challenges posed for multilateralism and the emergence of a sustainable development regime have pushed countries to engage in more flexible, issue-based development finance initiatives and institutions. These changes have profoundly impacted how China conceives and delivers its development finance. How is China’s development finance being shaped by other countries’ experiences? How has China been shaping development finance globally? This article argues that China’s development finance has been increasingly market-oriented, concerned about financial and environmental sustainability, and delivered through hybrid bilateral–multilateral channels, particularly since the launch of the Belt and Road Initiative. Shaped by the changes that China experienced at both international and domestic levels, these new features signal the rise of a ‘new Asian development finance’ that is refocusing the global debate on the importance of combining aid, trade, and investment under financially and environmentally sustainable frameworks, and channelling development finance through multilateral channels to catalyse structural transformation.