Biden's mega-pledge to poor nations raises questions about future funding
At G20 summit in Rio‚ US promises record-breaking aid for worlds poorest countries through World Bank fund. Political transition in Washington creates uncertainty about pledge implementation
During a non-public G20 meeting in Rio Joe Biden made a ground-breaking pledge: the US would give $4 bln to help poor nations (which is way more than last times $3.5 bln contribution)
The World Banks International Development Association needs big-time funding — its chief Ajay Banga wants to beat the Dec/2021 number of $93 bln. Some countries are already stepping-up:
- Denmark boosted its share by 40% to $492 mln
- Spain raised their part by 37% to 400 mln euros
The timing is tricky though — Donald Trump and Elon Musk are planning a cost-cutting group that might affect foreign aid spending. Congress wont decide on the money until after Jan/25‚ when the new president takes over
Jonathan Finer‚ deputy national security adviser said in Rio that this was a history-making commitment. He also mentioned that Biden and Brazilian president Lula da Silva would talk about clean-energy stuff on Tuesday
The World Banks poor-country fund gives super-cheap loans and money gifts to places that need help the most — they deal with stuff like debt problems climate issues and local conflicts. Banga thinks getting $120 bln is possible but itll need countries to dig deeper in their pockets
