U.S. Influence Challenged at World Bank Amid Development Funding Cuts

Germany's minister for economic cooperation, Svenja Schulze, emphasized that the Trump administration cannot dictate the World Bank's mission due to its international agreement-based goals. Schulze criticized U.S. Treasury Secretary Scott Bessent's call to refocus the bank's mission, highlighting the importance of addressing climate change despite U.S. funding cuts.

Germany's minister for economic cooperation and development, Svenja Schulze, has asserted that the World Bank's direction is not for the U.S. to decide, given its mission is shaped by multinational agreements. Her comments come amid tensions over recent calls by U.S. Treasury Secretary Scott Bessent to steer the institution back to its core mandates of macroeconomic stability and development, arguing an overreach into areas like climate change.

Dismissing Bessent's criticism, Schulze emphasized the foundational role of the World Bank in tackling global issues, including climate change, an area she insists should not be sidelined for what she termed 'vanity projects.' She also noted the shift in language within international institutions, with phrases like 'weather developments' being used to avoid directly referencing 'climate change.'

Schulze highlighted the negative impact of U.S. funding cuts on developing nations, pointing to a significant loss of trust. Her agenda at the World Bank meetings includes rebuilding this trust and reinforcing Germany's commitment to development aid, despite missing the United Nations' Official Development Assistance target. The incoming German coalition has agreed to an 'appropriate reduction' in the ODA quota following recent budgetary trends.

(With inputs from agencies.)