AIIB Vs. NDB: Can New Players Change the Rules of Development Financing?

(Beijing) — As Chinese President Xi Jinping urged global lenders at the G20 summit to push for reforms to better reflect the current shape of the world economy, two multilateral lenders led by developing countries have already picked their first projects while offering an alternative to Western- and Japanese-led funding institutions.

The China-led Asian Infrastructure Investment Bank (AIIB) and the BRICS New Development Bank (NDB), the latter jointly run by Brazil, Russia, India, China and South Africa, were partly born out of frustration with the decision-making structure at big lenders such as the World Bank and the International Monetary Fund, where some developing countries don't enjoy voting rights that reflect their contribution to the global economy.