Description
Existing studies of China’s role in multilateral development finance institutions (MDFIs) have endeavoured to determine whether China is socialized into accepting the liberal economic norms of these institutions or undermining the institutions to suit its own state-oriented preferences. They often have two problems: (1) overlooking the dynamic changes in the MDFIs’ norms and the adaptivity of Chinese preferences, and (2) suggesting a permanently hierarchical relationship between China and MDFIs, in which one imposes its own norms and beliefs on the other, which is often false. This paper aims to correct these two problems, by examining closely China and MDFIs’ mutual efforts in building norms in issue areas including poverty reduction, food security and environmental, social and governance (ESG) through learning and knowledge production. The paper uses examples of China’s engagement with the International Fund for Agricultural Development, the Inter-American Development Bank and the European Investment Bank. As a minor shareholder or non-member borrower, China does not seek to gain institutional governance power in these MDFIs as a primary objective, which makes the learning and knowledge-based collaboration stand out. The paper also assesses specific conditions of learning and knowledge production that determine the effectiveness of mutual norm-building between states and MDFIs.
