Regulation of Government Procurement by the AIIB: Convergence with Other Multilateral Development Banks and the Impact on the Liberalization of Procurement Markets and Sustainability of Government Contracts
(2017) 44(2) Syracuse Journal of International Law and Commerce 251-328
79 Pages Posted: 13 Nov 2017 Last revised: 23 Nov 2017
Date Written: March 1, 2017
The goal of this article is to discuss what one could reasonably expect from future procurement rules imposed by the AIIB as the leading China-led initiative potentially reshaping the current landscape of the MDBs' operations. This article starts by summarizing the discourse between the AIIB's critics who made ex ante admonitions about AIIB's possible procurement rules on the one hand (in section I.A) and AIIB's advocates claiming the opposite (in section I.B). Next, this article covers necessary background. It explains why, at least in the medium term (five to ten years), AIIBs procurement rules are very likely to follow already existing solutions largely delineated by the World Bank in some co-operation with other MDBs (in section II.A and section and II.B), and what the World Bank's procurement reform has brought about (in section II.C and II.D). It also explains how the approach to sustainability in [*258] procurement has evolved in the case of existing MDBs and procurement-liberalizing trade agreement (in section II.E), and how the conflict between procurement rules imposed by the MDB's on the hand and by trade agreements on the other hand have so far been resolved (in section II.F). Then, this article moves on to a detailed analysis of the IDPIR, including its structure and relations with other AIIB's documents (in section III.A), scope of application (in section III.B), core procurement principles (in section II.C), general provisions (in section III.D), specific procurement methods (in section 0), consultant rules (in section III.F), and use of country systems (in section III.G). In addition, this article also separately discusses the AIIB procurement rule's impact on international liberalization of procurement markets (in section IV) and how they address social and environmental concerns (in section V).
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