Regional Development Banks in the World Economy

In this introduction, we present the categories and the analytical framework that we apply to examine Regional Development Banks, and specifically a form of rational choice institutionalism—Principal-Agent analysis. We apply the categories and framework to each Regional Development Bank in its specific political economy context, with a view to setting out and analysing the similarities and differences among Regional Development Bank. We demonstrate and explain an important evolution in the main objectives of Regional Development Bank lending activities over three distinct periods: from regional integration and development, to market promotion and development, and then to geographical expansion—and multi-polarity promotion for some Regional Development Banks—and a more strategic interventionism in the market, that includes market shaping activities including industrial policy. We explain this evolution in terms of the agency of the Regional Development Banks in relation to their multiple principal—the shareholder national governments.