Gallagher in Global Policy on Chinese Development Finance
Kevin Gallagher, Professor of Global Development Policy at the Frederick S. Pardee School of Global Studies at Boston University, published a recent article exploring China’s growing passion for green finance, south-south development cooperation and global leadership.
Gallagher’s article, entitled “Chinese Development Finance: A Convergence of Passions and Interests,” was published by Global Policy on February 3, 2017.
From the text of the article:
The world of development finance is seeing the rise of key new actors. In just over a decade China’s two national policy banks, China Development Bank and the Export-Import Bank of China, that operate globally have emerged as global leaders in development finance in general and in financing for energy projects in developing country governments in particular. Moving forward, China has founded or co-founded two new multi-lateral development banks (MDBs) and at least 13 regional and bilateral funds that will increase Chinese development finance abroad by orders of magnitude.
China’s expansion is motivated by a number of factors, not the least of which is an excess of national savings and trillions of dollars of dollar reserves that China seeks to diversify across the globe. Through development financing abroad, China not only is able to diversify its savings globally in a strategic manner that steers finance toward building globally competitive Chinese firms, gaining access to global markets, and building global alliances. China initially attempted to increase the capital of Western-backed international financial institutions, but the West would not fully commit, so China resorted to building its own institutions. And as Jin Liqun, the new head of the China-led Asian Infrastructure Investment Bank recently said, “Now that China has developed, it is our turn to contribute”—China is emerging as a leader in providing global public goods.
You can read the entire article here.
Kevin Gallagher is the co-chair of the Task Force on Regulating Capital Flows and has served as an advisor to the Department of State and the Environmental Protection Agency in the United States, as well as to the United Nations Conference on Trade and Development. Gallagher has been a visiting or adjunct professor at the School for Advanced International Studies at Johns Hopkins University, the Fletcher School of Law and Diplomacy; El Colegio de Mexico in Mexico; Tsinghua University in China, and the Center for State and Society in Argentina.