Biden to Propose Reforms to the IMF and World Bank
Joe Biden’s requests at the 2023 G20 summit are related to reforms of the IMF and the World Bank.
It appears that Joe Biden will bring up IMF and World Bank reforms at the meeting. It’s worth noting that he succeeded this year in having Indian-American Ajay Banga elected as President of the World Bank.
U.S. President Joe Biden will propose reforms to the IMF and the World Bank to the leaders of the G20 this week.
The goal is to offer developing economies an alternative to “coercive” loans from China.
Biden, who will depart for India on Thursday to participate in the G20 over the weekend, wants to show the “Global South” that this forum is capable of proposing solutions to the challenges it faces.
Joe Biden’s proposal comes at a time when China has become the primary creditor to many emerging countries through bilateral agreements. In response to this situation, Biden will advocate for IMF and World Bank reforms at the G20 in order to provide developing countries with “transparent” and “high-quality” loans.
Washington aims to make the IMF and World Bank the main creditors of the “Global South” again by enabling these credit institutions to offer more loans. They also want G20 countries to commit to increasing their financing capacity by $200 billion over the next decade.
Biden to Propose Reforms to the IMF and World Bank: ¿?
The United States believes it is well-positioned to achieve these reforms of the IMF and the World Bank since it is the largest shareholder in both entities.
China has shown skepticism and made it clear that it prefers a “case-by-case” approach to prioritize its strategic interests.
On the other hand, at the G20 summit, Biden seeks to strengthen the geopolitical profile of the forum. There is a threat from the group of emerging economies known as BRICS (Brazil, Russia, India, China, and South Africa), and they have invited Saudi Arabia, Argentina, Egypt, the United Arab Emirates, Ethiopia, and Iran.
The Group of Twenty failed to issue a joint statement at its summit last year in Bali and had to settle for a “leaders’ declaration” that reflected the views of most of its member countries.
Finally, on the last day of the G20, Sunday, Biden plans to travel to Vietnam with the aim of strengthening diplomatic relations with this former adversary.
The intention is to establish a “strategic partnership” that would allow Hanoi to enhance its semiconductor production, another area of dispute between China and the United States.
Also Read: The Five Economic Proposals of Javier Milei and Juntos por el Cambio
