Interaction of Eurasian and international financial institutions

ABSTRACT

The paper handles two Eurasian international financial institutions, the Eurasian Development Bank (EDB) and the Eurasian Fund for Stabilisation and Development (EFSD), focusing on interaction with their international counterparts, including international financial organisations and multilateral development banks. We attempt to explain the reasons behind the choice of partners, modalities of interactions, underlying incentives and constraints, and varying dynamics of these two entities. It covers the following questions: What are the reasons behind the varying dynamics of international interactions for both institutions? What conditions the choice of institutions to cooperate with? Which constraints do the Eurasian institutions face? What is the relation between competition and complementarity in these interactions? The paper eliminates gaps in understanding the modalities and dynamics of the EDB and EFSD’s interaction with their counterparts among international financial institutions and provides a set of explanations.

KEYWORDS:

• International financial institutions
• regional financing arrangements
• multilateral development banks
• development financing
• international organisation
• global financial architecture
• global financial safety net
• Eurasian development bank
• Eurasian fund for stabilisation and development

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1. EDB website http://www.eabr.org/en.

2. The EDB website and the EFSD sub-domain are https://eabr.org/en/and https://efsd.eabr.org/en/, respectively.

3. The New Development Bank (NDB) belongs to the sub-group of recently established multilateral development banks which presumably should serve as an alternative to the Bretton-Woods institutions such as the World. NDB, colloquially called ‘the BRICS bank’, has five member states – Brazil, China, India, Russia, and South Africa. It is headquartered in Shanghai and has been endowed with $50 bln capital, including $10 bln paid-in capital (www.ndb.int). Later on in the paper, we also cover the EFSD cooperation with the Asian Infrastructure Investment Bank (AIIB). This financial institution has been set up in 2016 with the distinct leadership of China. As of 2020, it has 103 member states and $100 bln registered ($20 bln paid-in) capital. It is headquartered in Beijing (www.aiib.org).

4. https://www.ndb.int/press_release/ndb-board-directors-convenes-21st-meeting-shanghai-approves-projects-loans-aggregating-usd-1-4-bln/, accessed November 19th, 2019.

5. https://efsd.eabr.org/en/press-centre/news/acting-executive-director-of-the-efsd-project-block-and-director-of-the-imf-strategy-policy-and-revi/, accessed November 19th, 2019.

6. https://efsd.eabr.org/en/analytics/.