The AIIB’s Launch Sets the Stage for Supply-Side Competition in Development Finance

... should be allocated to the infrastructure sector [11] . On May 2015, Japanese Prime Minister Abe also announced that a fresh 110 billion dollars would be made available by the Japanese government over the next five years, in collaboration with the ADB, for high quality infrastructure projects. As an analyst put it, the move was a “ competitive slap at China’s new Asian Infrastructure Investment Bank.” [12] This increased competition in development finance in the region will certainly incentivize new and existing creditors to enlarge their funding-base and accelerate their grant procedures, driving forward the “investment race.” Indeed, the race is also joined by the BRICS New Development ...