Latest News

Report shows China’s growing clout at World Bank, global institutions

0
Economy1 hour ago (Nov 18, 2021 14:17)

© Reuters. FILE PHOTO: The Chinese national flag is seen in Beijing, China April 29, 2020. REUTERS/Thomas Peter/File Photo

By Andrea Shalal

WASHINGTON (Reuters) – With over $66 billion in total capital, China has passed Japan to become the second largest contributor to the system of development banks that provide some $200 billion in subsidized loans to poor countries each year, a new report said Thursday.

While China still receives loans and other aid from multilateral institutions like the World Bank and U.N. agencies, it has also emerged as one of the most powerful donors, according to the Center for Global Development.

It said that China, the world’s second largest economy after the United States, is the fifth largest overall donor across the range of United Nations agencies focused on development, including the U.N. Development Program, World Food Program, and World Health Organization.

Beijing’s role as a major donor, shareholder, aid recipient, and commercial partner of international institutions gives it “uniquely influential position,” the think tank said, citing a detailed look at China’s role at 76 global institutions.

“There’s been a lot of attention to China’s Belt and Road lending to developing countries, but a lot less on its growing footprint at global institutions like the World Bank,” said Scott Morris, a senior fellow at the center.

China’s expanding role at these institutions – and its role as the world’s largest creditor – has raised concerns in the United States and elsewhere in recent years, but Morris cautioned against viewing its role at the banks as a threat.

“This isn’t necessarily a cause for alarm,” Morris said. “It’s better for everyone to have China working inside the system instead of outside of it.”

Some of the increase has been driven by automatic contributions based on the size of China’s growing economy. But Beijing has also scaled up its voluntary donations, including at the World Bank’s low-income lending arm, the International Development Association, where it is now the 6th largest donor.

Report shows China’s growing clout at World Bank, global institutions

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Euro Recovering in Crosses, But Not Out of the Woods Yet

Previous article

EU to crack down on “letter box” investment funds run from abroad

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News