“It would be helpful if other G7 countries try to put pressure on the United States to tell them that what you are doing is forming two blocs in the world, and that will be difficult,” said on the sidelines. the American economics professor. G7 ministerial talks in Japan.
“We may be in a sort of strategic competition, but that doesn’t mean we have to be so hostile,” he added.
Stiglitz also warned that competition between US Democrats and Republicans over displays of hostility toward China could undermine international action on climate change and other global crises.
He argued that recent moves by Washington to try to reduce Chinese influence in important supply chains cannot be explained simply by concerns about China’s political system.
“We have a lot of authoritarian friends, but what we don’t like is economic competition and political competition,” he said.
“Significant” risk of default
Meanwhile, the West is investing “very little” in developing economies compared to countries like China, said Stiglitz, 80, a former chief economist at the World Bank.
“We tell them what to do, while they give them money,” he said, referring to Nadira.
Finance ministers from India, Brazil and Indonesia joined their G7 counterparts and central bank chiefs on Thursday for a three-day meeting in the Japanese city of Niigata.
Leaders of these and other countries, including Vietnam and Comoros, which hold the African Union presidency, have also been invited to attend the G7 summit next weekend in Hiroshima.
“It might help some of the other countries here to convince the G7 that part of the problem is that the G7, especially the United States, has no presence in Latin America and Africa. So even if we say that we’re competing, we’re not investing,” Stiglitz said.
China is financing infrastructure projects around the world through its massive Belt and Road Initiative, which Washington and its allies say is adding to the debt load of recipient countries.
It is unclear whether the G7 will announce any concrete investment plans after talks next week, although efforts to “de-risk” key sectors such as semiconductors by diversifying out of China will be on the table.
Speaking of the US debt ceiling crisis, the day after Treasury Secretary Janet Yellen said it was “out of the question” for Washington to default on its debt, Stiglitz warned that “the risk of not achieving to an agreement is high”.
He criticized Republicans’ insistence on deep spending cuts in return for raising the ceiling, saying: ‘It wouldn’t be politically rational, but politics in America is in a very strange state. .”
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