US Senate Approved the Creation of a New Agency Aimed at Investment in Developing Countries

The new agency will allocate funds for infrastructure development and energy. The US intends to own shares in supported projects. The creation of a new agency to assist developing countrieswas approved in the US. The Senate passed the relevant bill by a majority of votes on Wednesday, October 3. President Trump is expected to sign it into law soon. The budget of the new international development agency will be $ 60 billion. These funds willbeallocated to projects in developing countries in such areas as energy, port and water infrastructure. Unlike previous practices, the United States intends to act as the owner of shares in the projects, and not just allocate funding. Thus, the American side wants to limit the influence of China, which receives the right to participate in decisionmaking in exchange for financial support for infrastructure projects in many African countries. In September, Chinese President Xi Jinping announced China’s intention to invest $ 60 billion in Africa, at least 10 of which will be allocated in the next 3 years. It is about intergovernmental aid, investment, and loans. In addition, 500 highly qualified Chinese agricultural specialists will be sent to Africa to develop the agricultural sector. DW