The Asian Infrastructure Investment Bank: Bringing ‘Asian Values’ to Global Economic Governance?

Abstract

This paper examines the recent establishment of the Asian Infrastructure Investment Bank (AIIB) through the prism of the 'Asian values' debate. It maps the key attributes of these 'Asian values' first, to the established institutional governance structures of the AIIB, and second, to its proposed decision-making procedures; specifically, in relation to the criteria and process for evaluating, assessing, and monitoring the economic, social and environmental sustainability of infrastructure projects that this new Multilateral Development Bank (MDB) will be supporting. The object of this exercise is to postulate whether an 'Asian values' approach to international development finance can be proposed as a viable alternative to currently Western-dominated institutions of global economic governance and ultimately, the Anglo-American form of capitalism that still underpins the global economy. The twin roles of China within the AIIB, first as the financial catalyst for AIIB investment in regional infrastructure projects, and second, as a potential regional hegemon through its dominance of the AIIB governance structure, will be canvassed. The essay concludes by proposing an ‘Asian values’ approach to global economic governance as the foundation of a new research agenda which can be used to assess the future operations of this Bank and other new MDBs.