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

Italy, UK, Japan to sign deal on joint fighter jet programme by the end of the year

Italy, the UK, and Japan are on track to sign a treaty for the Global Combat Air Programme (GCAP) jet fighter project by the end of the year, marking a significant step in their collaborative effort to develop an advanced front-line fighter. The agreement between these three nations…

Kazakhstan’s uranium output reduction sparks interest in new supply agreements

Uranium project developers are witnessing a more optimistic outlook for prices and demand for supply agreements following significant developments in the market, notably the decision by Kazakhstan, the world’s leading uranium producer, to reduce its output. Recent discussions with…

China’s steel and oil refining output drops in September amid industry struggles

In September, China’s steel production and crude oil refining continued to decline, reflecting the ongoing challenges faced by two of the country’s key industrial sectors. Steel mills produced 77.07 million tons, marking the lowest monthly output in 2024, and leaving total production for the first nine months down 3.6%…

Stay informed

error: Content is protected !!