New development banks and the formation of alternative system of global finance

Abstract

The article considers the current status of the new development banks and the impact of the existing global financial infrastructure on the activities of the Asian Infrastructure Investment Bankand the New Development Bank. The author proposes to create and apply the elements of the international financial system in the activities of these organizations, independent of the leading reserve currency systems and reducing the risks of limiting the functioning of the Asian Infrastructure Investment Bank and the NewDevelopment Bank,as well as manifestations of institutional isomorphism in the activities of these organizations. Multilateral development banks enable borrowing countries to implement projects that cannot be financed by the state or the private sector. The system of multilateral development banks has been repeatedlycriticized bydeveloping countries,resulting in the establishment of the Asian Infrastructure Investment Bankand the NewDevelopment Bankof BRICS,declared to mobilize resources for infrastructure financing and independence from existing international financial institutions. At the same time, the creation of development institutions based on the financial infrastructure,in which the new institutions are designed to be an alternative, limits the realization of this goal. Based on comparative analysis of the efficiency of capital utilization by multilateral development banks, the author found significant potential for increasing the operational capacity of the Asian Infrastructure Investment Bank and the New Development Bank.