World Bank and IMF Urged to Refocus Amid U.S. Skepticism

U.S. Treasury Secretary Scott Bessent has called on IMF and World Bank leaders to regain the Trump administration's confidence by refocusing on core missions. The $4 billion U.S. pledge to the World Bank hangs in balance, contingent on institutional reforms returning to macroeconomic stability and development basics.

U.S. Treasury Secretary Scott Bessent emphasized that IMF chief Kristalina Georgieva and World Bank President Ajay Banga must refocus on core missions to earn the Trump administration's trust. Bessent highlighted the need for these financial institutions to return to their original goals, such as macroeconomic stability, instead of engaging in what he termed 'vanity projects' like climate change initiatives.

He announced that the $4 billion pledge to the World Bank's fund for the poorest countries remains undecided, hinging on U.S. budget talks and the bank's focus on development outcomes. At the institutions' spring meetings, Bessent emphasized the importance of preventing 'mission creep,' urging reforms to ensure these institutions serve their stakeholders' needs effectively.

As the U.S. reviews its participation in international bodies, Bessent's remarks underscore ongoing concerns, especially given America's status as the largest IMF and World Bank shareholder. IMF and World Bank officials acknowledge the need to adapt, with initiatives focusing on structural reforms, private sector cooperation, and broader energy policies to enhance efficiency and effectiveness.

(With inputs from agencies.)