US wants G20 to help reshape, scale up multilateral development banks like IMF & World Bank

The US wants the G20 nations to collaborate in reforming and expanding multilateral development institutions such as the International Monetary Fund and the World Bank, a top White House official has said.

John Kirby, the White House National Security Council Coordinator for Strategic Communication, stated on Wednesday that the United States will emphasize its commitment to the G20 as a vital platform for addressing global challenges during President Joe Biden’s upcoming visit to India.

President Biden is scheduled to arrive in New Delhi on Friday to take part in the G20 Summit.

“One of our main goals heading into the G20 is to help reshape and scale up multilateral development banks like the IMF, like the World Bank,” Kirby told foreign reporters at a news conference here on Wednesday.

“We know that these institutions are some of the most effective tools for mobilising transparent and high-quality investment in developing countries. And that’s why the United States has championed the major effort that is currently underway to evolve these institutions so that they’re up for the challenges of tomorrow,” he said.

Kirby said Biden asked the US Congress last month for additional funds that would have the impact of helping increase World Bank financing by more than USD 25 billion, and the US is working with its partners to see if they can pursue similar contributions.

During his India visit, Kirby said, Biden will also be calling on G20 members to provide meaningful debt relief so that low and middle-income countries can regain their footing after years of stress on their economies and their people.

“We’ll also be making progress on other key priorities, from climate to health, and as I said at the very top, digital technology. In addition, we’ll spotlight the progress that we’ve been making on the Partnership for Global Infrastructure and Investment that the President calls PGII,” he said.

Kirby noted that there will be continued focus on how the G20 deals with Russia’s illegal and ongoing war in Ukraine.

“The reality is that Russia’s war has already had devastating social, and economic consequences, and the poorest countries on the planet are bearing the brunt of that,” he said.

During the summit, Biden will call for a just and durable peace one founded in respect for international law, the principles of the UN Charter, and the precepts of territorial integrity and national sovereignty, he said.

“We will also continue to emphasise that the United States will support Ukraine for as long as it takes to redeem these principles,” he said.

“Last but not least and this is certainly important you’ll see that the United States will make it clear that we remain committed to the G20 as a critical forum for all the major economies of the world to come together for global problem-solving.

“The G20 itself, as a valuable and vital, as I said, venue, will be on the agenda. And in a sign of that commitment, the United States is looking forward to hosting the G20 ourselves in 2026,” said the White House official.

The G20 member countries represent around 85 per cent of the global GDP, over 75 per cent of the global trade, and about two-thirds of the world population.

The grouping comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US and the European Union (EU).

With inputs from agencies.