ABSTRACT
This chapter focuses on the multiplicity of multilateral development banks (MDBs) addressing their activities which are shaped by trends and styles in developing thinking and practice. The point of departure of the discussion is some of the most significant recent divergence posited between the neoliberal Washington Consensus and the developmentalist Beijing Consensus. It is argued that the Beijing Consensus was originally more a philosophical approach rather than a policy agenda, which is said to emphasise innovation, adaptation, self-reliance and state-led development. In this context a counterargument is presented, namely that in practice Chinese support for development has focused on a big push on infrastructure and an increasing focus on development loans over grants. Subsequently, this chapter explores the approach of the Chinese-led Asian Infrastructure Investment Bank to infrastructure lending and compares it to two of the interesting smaller Multilateral Development Banks (MDBs), the Development Bank of Latin America and the Islamic Development Bank. It evaluates not only the influence of the Beijing and Washington Consensus on these banks but also the often overlooked influence on MDBs of their structure as banks. The chapter argues that banking norms are at the heart of MDBs’ portfolios and loan expansion also sits well with them, because – as banks – continual expansion of lending is in their DNA. Still, debt is a blunt instrument even in the hands of multilateral institutions and MDBs’ current expansionary agenda may backfire and contribute to the current wave of hostility to multilateralism.
