Global institutions
The IMF and World Bank were both created at the 1944 Bretton Woods Conference.
True
The AIIB was founded by China in 2016 to replace the World Bank.
False — it complements and competes, not replaces.
Institutional competition always weakens existing IOs.
False — competition can lead to adaptation and reform.
Constructivists argue that IO behavior is shaped only by material power.
False — they emphasize norms and legitimacy.
What is the main focus of the IMF compared to the World Bank?
short-term financial stability & balance of payments; World Bank: long-term development & poverty reduction.
What type of projects does the AIIB primarily finance?
Large-scale infrastructure projects (transport, energy, connectivity).
What does it mean when we say the World Bank “adapted” to the rise of the AIIB?
It changed how it lends — becoming faster, more flexible, and more focused on infrastructure to stay competitive.
How does realism interpret China’s creation of the AIIB?
As a power projection tool to increase global influence.
Name one way the AIIB’s governance structure differs from the World Bank’s.
AIIB gives greater voting weight to regional members and uses a leaner, consensus-based model.
How does the AIIB make its loans more attractive to borrowing countries compared to the World Bank?
It offers faster approval and fewer policy conditions, giving borrowers more freedom in how they use funds.
Why does competition between global institutions like the AIIB and World Bank sometimes lead to improvement instead of conflict?
Because competition pushes them to modernize, respond to borrower needs, and prove their relevance.
How does the AIIB’s rise illustrate the Global South’s agency in global governance?
It shows Southern states can create new institutions and reshape global rules, not just follow them.
Why do many Global South countries view the IMF and World Bank as unfair or unbalanced institutions?
Because rich Western countries — especially the U.S. — hold most of the voting power and leadership positions, giving them more control over lending rules and decisions.
What is one main reason the AIIB and World Bank sometimes work together on the same project?
To share costs and risks, and to combine global standards with faster, flexible financing — cooperation that helps both stay influential.
What specific changes did the World Bank make after the AIIB began operating in 2016?
It sped up loan approvals, shifted toward infrastructure, loosened conditionality, and increased co-financing projects.
How does the AIIB’s rise challenge the traditional dominance of Western-led institutions in global development finance?
By creating competitive pressure, it forces the World Bank to adapt its policies and lending practices, showing that authority is not guaranteed by historical dominance.