Biden to push for World Bank reform at G20 Summit in New Delhi: Report

During the G20 leaders’ summit in India, US President Joe Biden will concentrate on reforming the World Bank and pressing other multilateral development banks to increase investment for infrastructure and climate change projects, the White House announced on Tuesday.

White House National Security Adviser Jake Sullivan was quoted by reporters as saying, “That's one of our main focuses heading into the G20: delivering on an agenda fundamentally reshaping and scaling up the multilateral development banks, especially the World Bank.”

The World Bank, established as World War II came to an end in order to combat poverty, is now being promoted as a counterbalance to China’s international financing.

With new funding and balance sheet regulations, the bank’s lending authority has been strengthened, with new CEO Ajay Banga pushing for more funds towards alleviating hunger and climate change.

In a supplemental budget request submitted to Congress in late August, the White House requested an additional $3.3 billion to “materially expand development and infrastructure financing” through the World Bank in order to provide nations with a “credible alternative to the People’s Republic of China’s (PRC) coercive and unsustainable lending and infrastructure projects.”

“We know that these institutions are some of the most effective tools that we have for mobilising transparent, high-quality investment into developing countries,” Sullivan was quoted as saying.

“And that’s why the United States is championing a major effort that is currently underway to involve these institutions so that they are up to the challenges of today and tomorrow,” he added.

According to Sullivan, Biden will also urge the G20 nations to grant low- and middle-income countries real debt relief.

(With inputs from Reuters)

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