At the G20 Summit in New Delhi, U.S. President Joe Biden is set to propose reforms to the World Bank and International Monetary Fund (IMF) aimed at better serving developing countries. According to U.S. National Security Advisor Jake Sullivan, the U.S. will “push proposals that will increase World Bank and IMF lending power by some \$200 billion.”
However, many developing nations and experts remain skeptical about the U.S.’s intentions. Critics argue that the U.S. has historically resisted substantial reforms of these institutions, fearing a loss of influence. “The calls for meaningful change in the global financial architecture have been voiced by Global South nations for years,” says an expert on international economics. “Yet, progress has been slow, often due to reluctance from major shareholders like the U.S.”
The World Bank and IMF are multilateral institutions with numerous national shareholders. Decisions to expand lending or reform operations require collective agreement. “These institutions are not owned by any single country,” notes a senior diplomat from an Asian nation. “For reforms to be effective, there must be genuine collaboration, not unilateral declarations.”
Reform of global financial institutions has been a recurring topic at international forums, including the United Nations and previous G20 summits. Developing countries have been advocating for changes that would make these institutions more responsive to their needs. “We need a financial system that is fair and equitable,” says a representative of a developing country. “It’s time for actions, not just words.”
As the G20 Summit progresses, the focus will be on whether the U.S. can build trust with developing nations and support meaningful reforms. The world watches to see if rhetoric will translate into real change for countries seeking economic development and stability.
Reference(s):
U.S. to show deceitful generosity towards developing countries at G20
cgtn.com
