Biden will promote reforms in the IMF and WB to support developing countries
The President of the United States will take advantage of the next summit to be held in New Delhi to promote changes in these institutions
At the upcoming G20 summit in New Delhi, President Joe Biden will present his approach to modernizing the International Monetary Fund (IMF) and the World Bank (WB) to better support developing countries, the White House reported. on Tuesday.
Jake Sullivan, the president’s national security adviser, noted that Biden will direct his efforts toward modernizing the multilateral development banks, including both the World Bank and the IMF. These institutions, controlled by the United States and Europe, become a welcome alternative to China’s opaque methods of financing development projects.
Sullivan stressed the importance of addressing the broad financing needs of developing countries, including loans made by China through the “New Silk Roads.” The US proposal seeks to establish solutions with high quality standards and principles to guarantee effective support to these countries.
According to Sullivan’s estimates, the reform proposals put forward by the United States could free up about $50 billion in US-only lending to middle-income and poor nations. The expectation is that partners and allies will also contribute, which would increase the total amount available to $200 billion.
Sullivan stressed that the objective of strengthening the IMF and the World Bank is not directed against China. However, this initiative arises in a context in which China has been expanding its economic influence through projects such as the “New Silk Roads”.
The White House proposal emerges while the BRICS summit in South Africa is taking place. This summit aims to expand the bloc of emerging nations in search of greater influence on the international stage.
Sullivan clarified that the BRICS are not expected to become a geopolitical rival to the United States. This statement seeks to allay possible concerns about the relationship between this bloc of emerging nations and the foreign policy of the United States.
K. Tovar
Source: Bancaynegocios
(Reference image source: Adarsh Kumar Singh, Unsplash)
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