Biden set to use G20 to offer financial support to the global south

U.S. President Joe Biden is set to attend the Group of 20 (G20) meeting in India with a proposal to offer financial support to the “Global South.” He aims to persuade fast-growing economies in Africa, Latin America, and Asia that there is an alternative to China’s Belt and Road project, which has invested billions of dollars in developing countries but often left them with significant debt burdens. This comes as China’s President Xi Jinping will not be attending the meetings, providing a narrow opening for the United States to influence the agenda of the G20, a club it has struggled to coordinate in the past.

Biden’s pitch centers around World Bank reform proposals and increased funding for climate and infrastructure aid in developing countries. The White House is seeking $3.3 billion from Congress to support this initiative, along with close allies raising $600 billion by 2027 for the Partnership for Global Infrastructure and Investment, which serves as an alternative to China’s Belt and Road Initiative.

While China’s economic downturn and debt issues with its Belt and Road projects have created an opening for the U.S., there are still significant challenges in gaining the support of developing countries. These nations are facing debt sustainability issues due to rising U.S. interest rates, higher inflation, and the ongoing effects of the COVID-19 pandemic.

The Biden administration believes that a reformed World Bank could meet the needs of developing nations while serving U.S. interests. They see this as an opportunity to provide a credible alternative to China’s lending and infrastructure projects.

Biden’s foreign policy has been built on standing up to Russia’s actions in Ukraine, managing competition with China, and strengthening U.S. alliances. While this approach has found success with traditional allies, it has had a less significant impact on developing countries, many of which seek to avoid taking sides in conflicts between major powers.

Xi Jinping is also engaging with the developing world through different means, such as hosting gatherings of Central Asian leaders and participating in discussions about development. China’s leader is finding ways to maintain and expand influence in the global South, despite challenges to its Belt and Road Initiative.

These developments will be closely watched as the G20 meeting unfolds and as the U.S. continues to seek greater influence in the developing world.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

U.S. revives strategic bismuth stockpile to curb China risk

The United States is moving to rebuild a dormant strategic reserve of bismuth, a metal it last stored nearly three decades ago but is now seeking to secure as part of its national defense supply chain. The Defense Logistics Agency (DLA) has announced plans to acquire more than five million pounds of bismuth over the next five years, a move aimed at insulating the Pentagon from supply disruptions in a market dominated by China.

Bismuth, while not widely known, plays a vital role in specialized industrial and defense applications. It is used in certain types of ammunition because it can replicate the physical properties of lead without the associated toxicity, making it valuable for both environmental compliance and battlefield logistics. Beyond defense, it is also used in alloys, soldering materials, and as a catalyst in various metallurgical processes, meaning that disruptions in supply could ripple across multiple industrial sectors.

Chinese investment in DR Congo infrastructure linked to copper price stability

Revised details of a minerals deal between the Democratic Republic of Congo (DRC) and Chinese companies, Sinohydro Corp and China Railway Group, reveal that around $7 billion of infrastructure investments will hinge largely on the stability of copper prices. President Felix Tshisekedi’s government sought…

U.S. to cancel Trump-era Alaska oil and gas leases

The U.S. Interior Department has announced the cancellation of oil and gas leases in the Arctic National Wildlife Refuge (ANWR) that were sold to the Alaska Industrial Development and Export Authority (AIDEA) during the final days of former President Donald Trump’s term. President Joe Biden has been focused on protecting the 19.6 million-acre ANWR to preserve its wildlife and combat climate change.

Stay informed

error: Content is protected !!