Infrastructure finance, late development, and China’s reshaping of international credit governance

2021 ◽  
pp. 135406612110029
Author(s):  
Muyang Chen
Keyword(s):  
International Development ◽  
International Governance ◽  
Export Credit ◽  
Late Development ◽  
Industrial Countries ◽  
Development Regime ◽  
Infrastructure Finance ◽  
International Credit ◽  
Rise Of China ◽  
Export Credits

How is the rise of China affecting international governance? This paper examines the domain of infrastructure finance by focusing on China’s two policy banks, which are the main creditors of China’s overseas infrastructure projects. While the incumbent international credit regimes led by the Organisation for Economic Co-operation and Development (OECD) distinguish development-oriented aid from commercially oriented export credits, emerging late-developed economies blur this dichotomy by largely funding development projects with state-backed export credits. The way China alters the OECD’s credit governance, this paper argues, demonstrates both the generality of late development and the peculiarity of “Chinese” development. Rather than directly subsidizing firms’ international business with the state’s fiscal revenue, policy banks financialized host country’s state-owned and state-coordinated assets using various market instruments. By doing so, they gave Chinese firms a comparative advantage in the markets of less developed regions, allowing them to undertake projects that firms from advanced industrial countries cannot. This financing mechanism has reshaped the international development regime by transforming the dominant means of credit allocation from state-led aid-giving to market-based exchange, and rewritten the liberal rules of the international export credit regime by financing the developing world in a both statist and liberalist manner. As a result, China has built a paralleled regime in regions insufficiently covered by the existing financial schemes of incumbent credit regimes.

9 Official Funding Sources: Export Credit Agencies and Multilateral Development Banks

2015 ◽  
Author(s):  
Borisoff Alexander ◽  
Compton Andrew
Keyword(s):  
Project Finance ◽  
Export Credit ◽  
Working Capital ◽  
Multilateral Development Banks ◽  
Funding Sources ◽  
Loan Guarantees ◽  
Development Banks ◽  
Export Credits ◽  
Risk Insurance ◽  
Export Credit Agencies

This chapter provides an overview of official funding sources available in the project finance arena, including from export credit agencies, multilateral development banks, and governmental and quasi-governmental entities. The forepart of the chapter describes export credit agencies and multilateral development banks generally, as well as hybrid-type official funding sources. The second part of the chapter explores the types of funding these entities provide, including loans, loan guarantees, political risk insurance, working capital facilities, equity investments, and bond guarantees. The chapter concludes by assessing regulatory regimes applicable to export credit agencies, including the voluntary OECD Consensus or Arrangement on Export Credits that seeks to promote transparency among export credit agencies, and other common issues and considerations to explore when seeking funding by way of such an official funding source.

Emerging market infrastructure finance has huge scope

2017 ◽  
Keyword(s):  
International Development ◽  
Emerging Market ◽  
The United States ◽  
First Year ◽  
Investment Bank ◽  
Content Type ◽  
Infrastructure Finance ◽  
Global Economic Growth ◽  
New Institutions ◽  
International Assets

Subject Project financing in emerging markets. Significance The establishment of the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB, or ‘BRICS Bank’) has changed the international development landscape. The new institutions have the potential to finance a significant share of infrastructure projects in developing countries. They could hasten the power transition from the United States and the West to China and the rest of the developing world. Their first year of operation offers insight into the extent that they will be able to realise this potential. Impacts The AIIB and the NDB will support the BRICS’ economic and foreign policy initiatives, such as One Belt, One Road. The AIIB will help China diversify and increase the value of its international assets, including those of the Silk Road Fund. The AIIB will open business opportunities for all infrastructure firms and the NDB will for BRICS-based companies. Long-term investors will be able to access a wider range of bonds; some may be rated below AAA but will be higher yield. The AIIB and the NDB will help achieve the 2030 'Agenda for Sustainable Development' and support global economic growth.

18. International Development

2020 ◽  
pp. 413-439
Author(s):  
Jan Orbie
Keyword(s):  
International Development ◽  
Policy Coordination ◽  
Development Cooperation ◽  
The European Union ◽  
Member States ◽  
Policy Domain ◽  
Future Challenges ◽  
Rise Of China ◽  
Budgetary Power ◽  
The Eu

The European Union (EU) is widely recognized to be a major actor in international development cooperation. First, this chapter discusses key issues and debates in EU development policy. These relate to the importance of the EU in this field, the different objectives that it pursues, the aid budgets at its disposal, and the legal competences vis-à-vis the member states. Secondly, the uniqueness of this policy domain, compared to other EU policies in this volume, is addressed. Specifically, it highlights three distinctive features: the availability of budgetary power outside the EU, the long historical legacy dating back to member states’ colonial past, and the key role of trade as the preferred tool for development. Thirdly, the chapter elaborates two main policy-making domains: the EU as a donor itself and as a coordinator of member states’ policies. Overall, the EU follows the regulatory and distributional modes in its role as a donor, and when it seeks to coordinate member-state policy, the policy coordination mode is to the fore. Moreover, intensive transgovernmentalist features appear in both domains. The conclusion summarizes the main trends and future challenges including the implications of Brexit, the rise of China, and the increasing politicization of aid.

The main trends in the development of export credit agencies in the world

2021 ◽  
Vol 27 (9) ◽  
pp. 2033-2049
Author(s):  
Hasan S. UMAROV
Keyword(s):  
Export Credit ◽  
State Support ◽  
Foreign Economic Policy ◽  
Trading System ◽  
The World ◽  
International Trading ◽  
Export Credits ◽  
The Stability ◽  
Export Credit Agencies

Subject. This article discusses the features and trends in the development of export credit agencies (ECA) in the world in the context of increasing competition of manufacturers for market share. Objectives. The article aims to show the peculiarities of the ECA's activities, reveal new aspects of their operation in modern conditions, and substantiate the need to change the international agreement in the field of export crediting and insurance. Methods. For the study, I used the comparative, statistical, and formal and logical methods. Results. The article shows the key role of ECA as an institution of State support for exports and a guarantor of the stability of the international trading system. It also finds that increased competition from Chinese and other ECAs that are not subject to the Arrangement on Officially Supported Export Credits – OECD rules, as well as the expanded role of ECA during the pandemic, necessitate uniform approaches to State support for exports of domestic producers at the WTO level. Conclusions. ECAs’ support remains one of the effective tools in implementing the State foreign economic policy and increasing the international competitiveness of certain sectors of the economy. The need to improve international rules on export credit and insurance to ensure the stability and sustainable development of international trade is becoming increasingly apparent.

Development geography 1

2016 ◽  
Vol 41 (1) ◽  
pp. 108-117 ◽  
Author(s):  
Emma Mawdsley
Keyword(s):  
Financial Crisis ◽  
International Development ◽  
Global Financial Crisis ◽  
Development Cooperation ◽  
The South ◽  
The North ◽  
Development Regime ◽  
Critical Approaches ◽  
South Axis

In this report I examine two of the most important trends bearing down on the international development regime in 2015, a landmark year. The first is the consolidation of South–South development cooperation (acknowledging the problematic nature of this designation), materially, ontologically and ideationally. The second is the response of the (so-called) ‘traditional’ donors to the opportunities and challenges provided by the ‘rise of the South’, in the context of the uneven reverberations of the post-2007/8 global financial crisis. Together, these interpolated trends have contributed to an unprecedented rupture in the North–South axis that has dominated post-1945 international development norms and structures – an axis that has also provided the focus for radical and critical approaches to the geographies of development. The resulting development landscape is complex and turbulent, bringing stimulating challenges to theorists of aid and development.

scholarly journals Financial Instruments to Support Russian Exporters

2019 ◽  
Vol 12 (4) ◽  
pp. 29-38
Author(s):  
A. A. Tarasov
Keyword(s):  
International Development ◽  
International Markets ◽  
Export Credit ◽  
Optimization Approach ◽  
Financial Instruments ◽  
Corporate Capital ◽  
The Subject ◽  
The Russian Federation ◽  
Revolving Credit

The subject of the research is the basic financial instruments for the support of Russian exporters that can ensure the competitiveness of Russian corporations in the international markets. The purpose of the article is a structured description of the line of banking products that are available for leading Russian exporters, as well as defining the tools for international development banks whose member is the Russian Federation; also, commercial banks products classification for exporters, and study of pre-export credit.  The methodological base for the research is optimization approach application to the forming of the capital structure for the exporting corporation using financial tools. To analyze banking products, structural and process approaches, including describing the parameters and pre-export and post export financing mechanisms and detailed execution schedule of the transactions, are used. Three key elements of corporate capital raising are discriminated. They are optimal structuring of the deal, correct organization of the monetary fund’s raising process, and efficient risk management in raising debt and stock capital. It is concluded that exporters have to use a number of different banking products to raise capital for achieving tactical and strategic aims of development. Depending on the needed size, terms and structure of the transactions the corporation can use such tools as short-term revolving credit, medium-term investment credit, long-term project financing.

scholarly journals Post-Cold War Interventions and International Development: Discourses, Practices and Policies

2014 ◽  
Vol 14 (2) ◽  
pp. 67-74
Author(s):  
Michelle Moreira Alves
Keyword(s):  
Cold War ◽  
International Development ◽  
International Governance ◽  
Political Responsibility ◽  
Post Cold War ◽  
Term Paper ◽  
Development Discourses ◽  
Actual Intervention

This term paper intend to analyze how interventions had changed and the reasons why it happened, it also tries to answer why the Western states are actually avoiding political responsibility in actual intervention for the international governance issues. In the introduction there are some explanations about the traditional sovereignty and shared sovereignty, followed by topics like responsibility and the denial of responsibility. It tries to show the consequences of the avoidance of accountability bring to the intervened states.

scholarly journals Amos and the Beyond Aid Agenda: The 0.7% Target, COVID-19, and Reimagining International Development

2020 ◽  
Vol 14 (4) ◽  
pp. 475-498
Author(s):  
Benjamin S. Day
Keyword(s):  
International Development ◽  
Old Testament ◽  
Critical Juncture ◽  
Development Regime ◽  
Donor States ◽  
Development Outcomes

Abstract This article draws on the Old Testament book of Amos as a lens for thinking about the aid-giving behaviour of ‘traditional donor’ states at a time of international uncertainty. In the emerging ‘beyond aid’ environment, achieving international development outcomes will require much more than the provision of aid. States and individuals that are serious about contributing to international development will need to ‘go deeper’, actively assessing the development impacts that a wide array of their own behaviours may have on individuals beyond their borders. By bringing key themes from Amos into conversation with characteristics of the international development regime, this article demonstrates why moving away from an aid-centric approach to international development—symbolised by the 0.7% spending target—is proving difficult. At the same time, it reveals how the COVID-19 pandemic has the potential to function as a critical juncture for reimagining international development in line with the message of Amos.

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