Better Partners Than Adversaries: Comparing the Role of China’s Asian Investment Infrastructure Bank to the World Bank

• Sarah Riemer, International Relations, University of Delaware

• Alice Ba, Political Science and International Relations, University of Delaware

When the World Bank was established in 1944, it served as the dominant international organization regarding economic development by promoting Western pathways like liberalization and the Washington Consensus. In recent history, however, many upstart international organizations have risen. Notably, the creation of the Asian Investment Infrastructure Bank (AIIB) by China in 2016 offered new paths to economic development guided by Chinese “true multilateralism.” Considering these opposing frameworks and the interplay between similar institutions, this research seeks to determine the following: does China, a rising power in Asia, seek to use upstart international organizations like the AIIB to contest Western-led economic development frameworks upheld by established international organizations like the World Bank? Through the analysis of existing theories as well as two case study examples—approaches to flooding in China and approaches to rail development in India—this paper finds that the AIIB and World Bank cooperate on economic issues more than they compete. Concerning domestic Chinese issues, I assert that the AIIB has enabled China’s government to be a more proactive and independent actor while also diminishing the World Bank’s obligation to provide aid to the region. On the other hand, pertaining to foreign issues where both the AIIB and World Bank have input, the World Bank has largely retained its presence with the AIIB serving as an additional mediator to promote collaboration even when external political tension exists. Ultimately, these results have three major global implications: reduced pressure on international organizations, more opportunities to pursue innovative solutions, and increased communication, collaboration, and connection. In the future, this work could be reinforced through the inclusion of more case studies as well as the consideration of other upstart international organizations.