04 March 2011
Geithner warns US lawmakers not to slash aid
Washington, China will come to dominate Africa and other developing regions if Washington stops supporting the World Bank and similar institutions, US Treasury Secretary Tim Geithner warned on Thursday.
With Republicans in Congress threatening to cut foreign aid budgets in a determined attack on government spending, Geithner told the Senate Foreign Relations Committee it was a matter of US national interest to keep supporting the World Bank and other multilateral development institutions.
"We have a very strong national security interest, national economic interest in supporting growth and development in emerging markets and developing economies," he said.
"In Egypt, Afghanistan, Pakistan and countries around the world, our investments in institutions like the World Bank are among the most powerful and cost-effective ways we have to promote US interests - our economic interests and our security interests."
"And it's worth emphasising that if we cede influence in these institutions or if we deprive them of resources, we will cede influence to China and other countries on the global stage."
"Many of you on this committee, after travelling to Africa, to Asia, to Latin America, have expressed concern about the dramatic expansion of commercial activity by China and other countries.
"For many countries, the only alternative to financing from institutions like the World Bank is to turn to China."
In 2010, the US budgeted $2.0 billion for the World Bank and six other development banks and funds, like the Asian Development Bank and African Development Bank.
Geither told the senators the US contributions are only five percent of the country's total foreign assistance budget.
"But they mobilise funds that total more than one-and-a-half times the entire US foreign assistance budget," he said.
http://www.channelnewsasia.com/stories/afp_world_business/view/1114301/1/.html
Washington, China will come to dominate Africa and other developing regions if Washington stops supporting the World Bank and similar institutions, US Treasury Secretary Tim Geithner warned on Thursday.
With Republicans in Congress threatening to cut foreign aid budgets in a determined attack on government spending, Geithner told the Senate Foreign Relations Committee it was a matter of US national interest to keep supporting the World Bank and other multilateral development institutions.
"We have a very strong national security interest, national economic interest in supporting growth and development in emerging markets and developing economies," he said.
"In Egypt, Afghanistan, Pakistan and countries around the world, our investments in institutions like the World Bank are among the most powerful and cost-effective ways we have to promote US interests - our economic interests and our security interests."
"And it's worth emphasising that if we cede influence in these institutions or if we deprive them of resources, we will cede influence to China and other countries on the global stage."
"Many of you on this committee, after travelling to Africa, to Asia, to Latin America, have expressed concern about the dramatic expansion of commercial activity by China and other countries.
"For many countries, the only alternative to financing from institutions like the World Bank is to turn to China."
In 2010, the US budgeted $2.0 billion for the World Bank and six other development banks and funds, like the Asian Development Bank and African Development Bank.
Geither told the senators the US contributions are only five percent of the country's total foreign assistance budget.
"But they mobilise funds that total more than one-and-a-half times the entire US foreign assistance budget," he said.
http://www.channelnewsasia.com/stories/afp_world_business/view/1114301/1/.html
