Biden wants to strengthen IMF and World Bank to challenge China

WASHINGTON: Joe Biden will advocate for strengthening the financial capabilities of the International Monetary Fund and the World Bank at the upcoming G20 summit in India, his national security adviser Jake Sullivan said on Tuesday.

During this meeting, which will be held on September 9 and 10, the US president “really wants to devote a lot of his energy to the modernization of multilateral development banks, including the World Bank and the IMF”, he assured during the exchange of views. with print

“Given the scale (of financial needs) and, frankly, the onerous and unsustainable loans that China is providing through the ‘New Silk Roads’, we need to ensure that there are ‘solutions with high standards of quality and principles.’ for developing countries, said Jake Sullivan.

“One way to value our money is through the World Bank and the IMF,” the adviser added. He estimated that the US proposals for the two institutions would free up “about $50 billion in loans to middle-income countries and poor countries from the United States alone” and expect “our allies and partners to contribute” as well, adding to the volume of available financing. 200 billion dollars.

Jake Sullivan believed that these two institutions in Washington, which are actually dominated by Americans and Europeans, are not “Western institutions” but “a positive alternative to China’s much more opaque and much more restrictive method” of financing development projects.

However, an adviser to Joe Biden assured that “the (United States’) support to the World Bank and the IMF was not (was) directed against China.”

The White House has decided to communicate its ambitions for the two main institutions when the Brics summit opens in South Africa, with an agenda to expand the bloc of large developing countries seeking greater international influence.

“We don’t think the Brics are going to become some kind of geopolitical rival for the United States or anybody else,” said an aide to Joe Biden.

Elliot Frost

"Pop culture maven. Analyst. Writer. Wannabe food evangelist. Organizer. Friendly internet lover. Incurable troublemaker. Entrepreneur."