How do global crises influence rising powers’ modes of engagement across economic international organisations?
In the aftermath of the COVID-19 outbreak, China, the foremost rising power, faced critical decisions on its involvement in global crisis response efforts. This study by Yoram Haftel, Simone Veil fellow at the Schuman Centre, focuses on multilateral development banks (MDBs) as key channels for providing financial and technical assistance to affected countries.
China’s primary alternatives were the World Bank and the Asian Infrastructure Investment Bank (AIIB). This analysis reveals that China adopted a hedging strategy within the World Bank, oscillating between shallow support and shallow resistance. It welcomed policies benefiting the Global South while advocating for institutional reforms.
In contrast, within the AIIB, China pursued a strategy of deep cooperation, championing a significant expansion of the AIIB’s mandate. The research attributes these varying modes of engagement to the strategic environment and China’s organizational clout.
With respect to the latter, Professor Haftel contrasts the considerable sway China holds over the AIIB with its constrained role within the World Bank, which is controlled by the Global North. Regarding the strategic environment, he juxtaposes the proven track record and epistemic authority of the World Bank with the inexperience and need to establish professional credibility of the newly established AIIB.