China’s Influence on Global Development Grows

China has passed Japan to become the second largest contributor to the system of development banks with over $66 billion in total capital. The development banks provide $200 billion in subsidized loans to underdeveloped countries each year. China still receives loans and aid from some international organizations like the U.N. and the World Bank, but it has also become one of the leading donors.

China, the world’s second largest economy after the United States, is the fifth largest donor in the U.N. ‘s development agencies including the Development Program, Food Program and World Health Organization. The country’s role as a major donor has given it an influential position. There has been a lot of talk regarding China’s lending to developing countries through its Belt and Road Initiative, but the country’s influence on global institutions like the World Bank has increased considerably as well.

China’s growing influence at these institutions and its position as the world’s largest creditor has been concerning the United States and other western nations.

Some of China’s contributions have grown automatically because of its growing economy, but the country has also scaled up its donations including at the International Development Association, the World Bank’s arm of low income lending.

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