Marc Chandler | Jul 23, 2014 11:10AM ET
India and China are the two biggest borrowers from the World Bank. Brazil is the 9th largest borrower. Together they have borrowed $66 bln from the World Bank. As Steill and Walker point out this is about a third larger than the initial capitalization of the BRICS new development bank ($50 bln). It can supplement on the margins, but it cannot supplant the World Bank.
In addition, as we have seen with China's bilateral swap lines, announcing a new facility is one thing, which is difficult enough; making it operational is a different story. Finding appropriate development projects and creating proper incentive structures have often eluded the World Bank. What do the managers of this development bank know that the best and brightest at the World Bank don't?
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