The landscape of development finance is changing rapidly. Traditionally, international financial flows moved from developed countries to developing countries. In the last decade, however, major emerging economies such as China and Brazil have fueled a growing trend of South-South development flows by increasingly channeling their overseas investments to other developing countries.
China and Brazil are surfacing as major international investors through nationally owned financial institutions such as the Export-Import Bank of China, the China Development Bank and the Brazilian Development Bank (BNDES). These “emerging actors” are financing major initiatives to acquire natural resources, open markets, and forge strategic political ties. They are increasingly financing large-scale, high impact projects beyond their borders—such as hydropower plants and gas pipelines—which may pose new challenges for environmental and social sustainability.
This preliminary research focuses on Chinese and Brazilian overseas investments and begins to look at the growth drivers and geographic trends of those investments.