Conflicting interests in conflicting interests and empowering the powerless.
Talks of three banks of different nations merging have been going on in the World Bank.
07 June 2022
Singapore- Several countries during the World Bank committee session presented different views on the idea of a three-bank merger as an alternate option for the World Bank.
The three banks are from the United States, Japan, and China.
The delegate of Italy mentioned that there might be difficulty in merging these three banks as these countries have different geopolitical interests.
The delegate of Russia, too, agreed upon the point made by the delegate of Italy.
However, the delegate of Zimbabwe felt that the different conflicts of geopolitical interest might not be awful contrary to popular belief.
He said, ”with countries having different geopolitical interests, the banks of different countries would be willing to outperform each other”.
This would thus result in banks of different nations competing with each other, to lend more money to developing countries that need help.
Nevertheless, the delegate of Italy opposed it by stating that such a competition goes against a significant part of the discussion which is sustainability. He vocalised,” this is not a sustainable solution as there is a limit that banks can lend”.
Furthermore, he ended by stating that this merger would not be a good solution to helping developing countries as it is hard to ensure that these three countries might be in power in the future.
Meanwhile, Zimbabwe and Russia feel that the World bank is dominated by the United States, and thus feel that this merger of banks and perhaps more banks in the future would allow countries of lesser influence to have more power.
The delegate of Russia remarked that ” the decision of the US in the World Bank would be of their political interests.”
The delegate of Turkey, too, voiced out that if more banks of different countries join this merger it would result in equal representation rather than other countries having more power than others.