Joe Biden is pushing to secure international support to expand the World Bank’s lending capacity, as Washington comes under intense pressure to fund the fight against climate change and offer a viable alternative to China’s economic influence.
The US president and top officials in his administration have placed efforts to enhance the financial firepower of the multilateral lender at the top of the agenda at the G20 leaders’ summit due in New Delhi this weekend.
The US plan would enlarge the World Bank’s lending capacity for middle-income and low-income countries by $25bn, US administration officials have said. That figure could increase sharply, to more than $100bn, if other nations make similar pledges, which is Washington’s goal starting at the G20 and in the coming weeks.
“We’re working to make sure other partners follow our lead,” Jake Sullivan, the US national security adviser, told reporters this week.
While the backing of other nations — and the US Congress — is far from guaranteed, the need for the Biden Administration to counter Beijing’s efforts to broaden its economic alliances around the world is becoming more urgent.
The recent Brics summit in South Africa, as well as a perception in some countries that Washington has been disproportionately helping Ukraine at the expense of other needy nations, have raised the issue of development finance higher on the US agenda.
Meanwhile, emerging economies have been struggling to cope with rising interest rates, high energy prices and mounting costs associated with climate change. That has left them clamouring for financing on better terms.
“It’s not just a question of responding to China, it’s a question of addressing long-standing global challenges,” Janet Yellen, the US treasury secretary, told reporters on Friday in New Delhi. “We are hopeful that other countries, depending on their financial capacity, will join us and we can scale that up.”
Sullivan has insisted the plan to increase the World Bank’s coffers was not “against China”. But he has also said it was “critical” for countries to have alternatives to Beijing’s Belt and Road Initiative, which has lent on opaque terms.
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https://telegra.ph/Joe-Biden-Cabinet-it-was-nearing-time-to-decide-whether-they-plan-09-08
https://plaza.rakuten.co.jp/biancalarzo/diary/202309090000/
https://joebidenreelectioncampaignismakinganewdigitaladbuy.statuspage.io/
https://www.crowdcast.io/c/joe-biden-murky-business-dealings-with-his-son
https://boinc.berkeley.edu/test/view_profile.php?userid=107721
https://www.dibiz.com/tugixife
The White House has said countries such as Colombia, Peru, Jordan, India, Indonesia, Morocco, Nigeria, Kenya, and Vietnam might all benefit from more lending from the World Bank.
Joe Biden pushes for bigger World Bank to combat China’s rising influence
US president seeks funding boost for multilateral lender as need to counter Beijing’s efforts becomes more urgent
“What India has done is to bring in the concerns and priorities of the global south and to try and move them beyond standard approaches to address the real issues,” said V Anantha Nageswaran, Modi’s chief economic adviser. “For multilateral development banks, for example, we cannot wish away the 800 pound elephant in the room: the financing capability of these institutions.”
Part of India’s mission in the finance track negotiations, Nageswaran said, was “to strengthen multinational development banks by confronting the core issues, not ducking them”.
The plan is set to be reflected in the final communique, according to a draft seen by the Financial Times. The document, due out on Sunday, states that the group is “working to deliver better and more effective MDBs [multilateral development banks] with increased lending capacity, improved responsiveness and accessibility, and enhanced operating models”.