China’s Approach To International Financial Cooperation From The Perspective Of Regional Public Goods

In the context of the large infrastructure financing gap in Asia,the difficulty of traditional multilateral development banks to get rid of the control of developed countries and the restricted lending conditions,and the continuous growth of emerging markets,their intention to change their weak position in the international financial system and their ability to provide financing support for regional development,initiated and founded by China,the AIIB accurately responds to the needs of the vast number of less developed countries and regions in the region for infrastructure construction and economic development,and has launched useful exploration for a new model of international financial cooperation.From the perspective of regional public goods theory,this paper regards AIIB and its loans as regional financial public goods,and further discusses and analyzes it from six parts.The first part is the theoretical deconstruction of public goods.Firstly,it analyzes the supply subjects of public goods.According to the nature and composition of the supply subjects,the supply modes of public goods are divided into four types: "single government supply mode","single market supply mode","social organization supply mode" and "multi-subject supply mode".The characteristics of each type are described one by one.Secondly,it analyzes the supply mechanism of public goods,and lays a theoretical foundation for the objective,principle and system construction of the supply mechanism of public goods from three aspects: value orientation,optimal allocation and system design.Thirdly,it analyzes the object of benefit of public products,that is,which target groups and target areas are finally benefited by public products,which is the core part of the supply system of public products,and also the focus of this paper.Whether public products achieve their "publicity" is mainly determined by analyzing the breadth and depth of the object of benefit.Finally,it analyzes the external environment of the public goods supply system.The "external environment" is not the external environment in the geographical sense,but the external environment of the whole public goods supply system.It mainly studies the interactive relationship between the public goods supply system and various factors of the external environment and the problems caused by it.The external environmental factors are divided into "positive","neutral" and "negative" parts.The second part is the construction of the analysis framework of regional public goods on the basis of the theoretical deconstruction of the first part.The construction process is based on four questions:(1)how to choose the main body of the supply(or what kind of supply mode to choose);(2)How to build a scientific and efficient supply mechanism;(3)How to allocate public goods reasonably and fairly;(4)How to deal with the relationship with the external environment of the public goods supply system.Based on these four problems,this paper summarizes the analytical framework of regional public goods into four progressive and organically linked levels,namely,the selection of regional public goods suppliers,the construction of supply system,the distribution of benefit objects and the analysis of external environment,and builds an analytical framework for the following analysis of AIIB.The second part is the construction of the analysis framework of regional public goods on the basis of the theoretical deconstruction of the first part.The construction process is based on four questions:(1)how to choose the main body of the supply(or what kind of supply mode to choose);(2)How to build a scientific and efficient supply mechanism;(3)How to allocate public goods reasonably and fairly;(4)How to deal with the relationship with the external environment of the public goods supply system.Based on these four problems,this paper summarizes the analytical framework of regional public goods into four progressive and organically linked levels,namely,the selection of regional public goods suppliers,the construction of supply system,the distribution of benefit objects and the analysis of external environment,and builds an analytical framework for the following analysis of AIIB.The third part,based on the analysis framework of the second part,carries out empirical research on the selection of the supply body of the AIIB,the construction of the supply system of the AIIB,the distribution structure of the financial public products of the AIIB,and the analysis of the external environment of the supply system of the AIIB.The selection of the supply body of the AIIB is mainly based on the analysis of the composition of the members of the AIIB.The construction of the supply system of AIIB is an analysis of the governance structure and loan approval mechanism of AIIB.The distribution structure of the financial public products of AIIB is mainly an overall study on the member distribution and domain distribution of the current loan projects of AIIB.The analysis of the external environment of AIIB supply system discusses the different attitudes and reactions of the international community towards AIIB from three perspectives: positive,neutral and negative.In the fourth part,based on the systematic study of AIIB in the framework of regional public goods analysis in the third part,it is found that AIIB’s organizational structure has problems such as lack of supervision department,lack of crisis coping ability,lack of experience and legal documents related to policy loans,and limitations of loan conditions in its lending mechanism.The AIIB’s loan allocation structure has problems such as capital concentration and unfair distribution,and the external environment of AIIB has potential risks and crises such as negative boycott and vicious competition.The fifth part,aiming at the problems in the fourth part,gives the corresponding countermeasures and solutions.The sixth part concludes that AIIB should learn from the successful experience of other mature multilateral financial institutions,actively cooperate with them and complement each other,improve its own governance structure and enhance the supply level of public goods,pay attention to its public attributes and the needs of vulnerable members when allocating loans,and flexibly resolve potential external risks.The "AIIB public goods supply model" provides a new approach,new paradigm and new path with Chinese characteristics for international financial cooperation,especially that of developing countries.