President Joe Biden is gearing up for the G20 leaders summit in India, where his primary focus will be reforming the World Bank and promoting multilateral development banks’ support for climate change and infrastructure projects.
White House National Security Adviser Jake Sullivan has outlined their key objective for the G20 summit: a fundamental overhaul and scaling up of multilateral development banks, with a particular emphasis on the World Bank.
President to Advocate Multilateral Bank Reforms and Climate Initiatives
The Biden administration aims to position the World Bank as a counterbalance to China’s overseas lending initiatives.
Under the leadership of its new CEO, Ajay Banga. The World Bank is working to expand climate change and hunger programs. While enhancing its lending capacity through innovative funding and balance sheet rules.
In late August, the White House requested an additional $3.3 billion in funding from Congress. This funding boost is intend to significantly expand the World Bank’s ability to finance development and infrastructure projects.
The goal is to offer countries a credible alternative to China’s coercive and unsustainable lending practices and infrastructure projects.
Sullivan stressed the effectiveness of these institutions in mobilizing transparent, high-quality investments in developing nations. The United States is at the forefront of an extensive effort to ensure these institutions are equipped to meet current and future challenges effectively.
Furthermore, President Biden will urge the G20 to provide meaningful debt relief to low and middle-income countries. Underscoring their commitment to supporting nations in need.
President Biden’s agenda at the G20 summit reflects a broader commitment to addressing global challenges, including climate change, infrastructure development, and debt relief for vulnerable nations.