Tag: China

The Lender of First Resort? Chinese Swap Lines, the IMF and the Changing International Financial Architecture

Since its founding, the International Monetary Fund (IMF) has in theory sought to act as the international “lender of last resort,” providing financing to countries facing balance-of-payments and macrofinancial pressures.  However, in the 21st century, the landscape of international rescue lending has shifted. China has become the world’s largest bilateral lender, providing assistance comparable to […]

The IMF’s 17th General Review of Quotas Needs a New Formula to Deliver on Development

By Tim Hirschel-Burns and Marina Zucker-Marques Quotas are at the core of the International Monetary Fund (IMF)’s finances and governance, and they are overdue for reform. Quotas are the primary funding source to support the IMF’s lending and operations, and they determine the amount countries can borrow from the IMF, their share of Special Drawing […]

The Role of Government Guidance Funds in Financing Innovation in China

By Cornel Ban and Xuan Li In most Western economies, venture capital (VC) is largely a private enterprise, driven by the pursuit of profit. The state typically plays a secondary role, stepping in only when private capital is hesitant. Government VC firms fill this gap, providing risk capital to innovative startups and fueling Mazzucato-style “missions.” […]

The Potential Role of Panda Bonds in Development Finance

By Yan Wang and Zheng Zhai Over the past two decades, China has become the largest bilateral provider of development finance. At the 2024 Forum on China-Africa Cooperation (FOCAC), China reaffirmed its commitment to further opening its vast financial market to African nations, encouraging them to issue panda bonds. Alongside this, it pledged $51 billion […]

The Political Economy of Variations in Energy Debt Financing by Two Chinese Policy Banks in Africa

The African continent faces a multifaceted challenge regarding its energy policy. To bolster economic industrialization and improve livelihoods, leaders seek energy solutions with low carbon emissions while endeavoring to bring electricity to an estimated 600 million people who lack access.  Emerging as a pivotal capital provider for global energy finance, China has committed $49 billion […]

Webinar Summary: China’s Global Energy Finance Database – Data Update, 2000-2023

By Thang Ha On November 14, 2024, the Boston University Global Development Policy (GDP) Center hosted a webinar on the latest data and trends in China’s overseas energy finance, based on the new update to China Global Energy Finance (CGEF) Database. The webinar was moderated by Rebecca Ray, Senior Academic Researcher with the Global China Initiative […]

Acting in Parallel on Debt and Development before It is Too Costly and Too Late

Emerging market and developed countries must meet their shared climate and development goals to avoid the catastrophic costs of inaction. Yet, the International Monetary Fund (IMF) estimates that 26 low-income countries are in debt distress or default, and new academic research estimates say this number will double if countries mobilize the level of investment needed […]