U.S. President Joe Biden is now encouraging G20 leaders to support the World Bank, as well as other multilateral development financial firms.
The American leader explained how helping the World Bank's expansion could hamper the growing influence of China.
Joe Biden Urges G20 Leaders to Support World Bank
World Bank President Ajay Banga explained that the international development organization is now helping with other global challenges.
Previously, the World Bank only focused on eradicating poverty. Now, the global financial institute is also helping with climate change, food insecurity, as well as pandemics.
Because of this, the World Bank is having a hard time boosting its lending capacity.
"There's no way there's enough money in the multilateral development bank, or even in governments ... that can drive the kinds of changes we need for this polycrisis," said Banga via CNBC.
The World Bank leader added that the World Bank really needs the private sector's capital and ingenuity to enhance its lending capacities.
During the G20 summit, Biden persuaded G20 leaders to further support the World Bank over the next year.
POTUS further stated that with their help, the World Bank can increase its ability to support low- and middle-income countries, as reported by the Financial Times.
In his own effort, Joe Biden requested the U.S. Congress to increase the World Bank's financing by over $25 billion. If Congress accepts this, it will enable the international financial group to help developing countries improve their economy.
Read also: US-Vietnam Relations: Biden Forges Strategic Partnership With Hanoi Amid China's Rising Influence
How Helping World Bank Can Hamper China's Growing Influence
Recently, the U.S. president explained that if they want to develop countries' dependency on China, so they need to offer more funding options.
By doing so, they can also help nations affected by the Russia-Ukraine war recover. The White House explained that by supporting the World Bank, it can become a stronger institution.
Once this happens, the global development organization will be able to provide more resources needed to tackle global challenges, as well as address the urgent needs of poor countries.
"It is essential that we offer a credible alternative to the People's Republic of China's (PRC) coercive and unsustainable lending and infrastructure projects for developing countries around the world," added the White House.
If you want to learn more details about the latest initiative of Biden and other G20 leaders to enhance the lending capacity of the World Bank, you can click this link.
