The US plan to expand the World Bank against China
Following the official announcement that the World Bank would provide Turkey with a loan of 18 billion dollars over three years, in addition to the existing loan of 17 billion dollars, a notable news story was published yesterday in the British newspaper Financial Times.
In the news story titled “Joe Biden pushes for World Bank expansion to combat China’s growing influence,” it was written that the US administration was seeking support both in Congress and internationally to increase the World Bank’s lending capacity.
The news notes that Washington is under intense pressure to finance the fight against global climate change and offer a viable alternative to China’s economic influence, and that the World Bank’s lending capacity will be increased at the G20 leaders’ summit, which began today in New Delhi, capital of India, it was reported that it would be on the agenda.
100 BILLION DOLLAR INCREASE TARGET
The news said that the World Bank’s lending capacity could be increased by $25 billion with the US contribution and by $100 billion with the contribution of other countries, and the National Security Advisor’s statement of the US, Jake Sullivan, this week: “We are working to ensure that other partners follow us.”
Although Sullivan said the World Bank’s plan was not against China, he also said that “it is critical that countries have alternatives to Beijing’s Belt and Road Initiative, which offers opaque conditions.”
It has been reported that the US administration will ask Congress for approval to transfer $2.25 billion to the World Bank, which will provide a $25 billion increase in lending capacity along with leverage.
It was stated that the Biden administration also plans to transfer resources to the IMF to increase its lending capacity for low-income countries by $21 billion.
THE BRICS SUMMIT INCREASED PRESSURE FOR THE US
The news commented: “Although support from other countries and the US Congress is far from guaranteed, the need to counter Beijing’s efforts to expand its economic alliances around the world is becoming more urgent for the Biden administration. “.
The story highlighted the latest Brics summit in South Africa and the perception that the United States helped Ukraine disproportionately compared to other countries in need, and stated that these two events brought the issue of development financing to the top of the agenda. the agenda of the US administration.
Stating that developing countries are having difficulty coping with rising interest rates around the world, high energy prices and rising costs due to climate change and are therefore demanding financing on better terms, The Financial Times cited US Treasury Secretary Janet Yellen’s statement yesterday in New Delhi: “This is just China.” “This is not about responding to long-standing global challenges, but about overcoming them,” she recalled in the statement.
Yellen also said: “We hope that other countries will join us, depending on their financial capacity, and we can expand this.”
COUNTRIES THAT CAN GET MORE CREDITS
The news reported that the White House said countries such as Colombia, Peru, Jordan, India, Indonesia, Morocco, Nigeria, Kenya and Vietnam could receive more loans from the World Bank.
It was stated that India, which hosted the G20 summit, also supports the World Bank agenda and will include a plan for this agenda in the final G20 communication.
On the other hand, although the reform of the IMF and the World Bank was also on the agenda, it was stated that the United States, which is the largest shareholder in these two institutions and has veto power, would prevent a reform that would increase China’s power. . voting power and influence.