US Treasury Secretary Bessent accuses the IMF and the World Bank of the World Bank “Mission Riga” – what is it for the economy?
US Treasury Secretary Scott Besent asked the International Monetary Fund and the World Bank to return to the basic missions of its development and maintain macroeconomic stability. He said that two organizations were too involved in meaningless projects, making them less efficient.
In accordance MashThe IMF and the world bank have gradually shifted from its mandate to devote disproportionate time and resources for projects such as climate change, gender and social problems. He named projects “Vanity Projects”
He said, “The IMF and the World Bank have a steady value. But the mission's creeping has been shot from the course. We have to set the main reforms to make sure that Bretton Woods institutions serve their stakeholders – not the other way around.”
Bessent says the world bank should be technical neutral
Scott Bessent said the IMF should focus on its main mandate and follow the strong standards of his loans. According to him, the IMF sometimes has to say no. The group is not obliged to give money to countries that do not make reforms. It comes after Argentina hit a $ 20 Billion transaction.
Bessent also encouraged the World Bank to invest in gas and fossil fuels. He said the World Bank must be technical and prefer the affordability of energy investments.
“Mostly it means investing in gas and other fossil fuel -based energy production […] In other cases, this may mean investing in renewable energy with systems that help manage the wind and sun. ” He said.
In addition, Bessent said that the Trump administration was eager to cooperate with them when they could stay true to their missions. He added that the administration wants to increase US leadership in these groups: “America does not mean America alone.”
Project 2025 has not been able to get rid of IMF and the World Bank
Since the 2025 project, which is a hard right-wing Republican policy framework related to Trump's second term, Trump has fought against US-dependent foreign organizations. The Project 2025 named both the IMF and the World Bank “Dear Intermediate”, which will take us around the world.
After Trump pulled the US Climate Agreement and the World Health Organization in the United States, there is a concern about the future US participation in the IMF and the World Bank. In February, he also ordered to review all US -funded foreign organizations in 180 days.
However, the United States has benefited from these institutions both economically and with the projection of soft power. The US has the most votes in both the IMF and the World Bank, which means that it can effectively block big decisions.
If the US were pulled out, it could cause an immediate liquidity crisis for the IMF and the World Bank, which depends on US contributions for $ 1.5 trillion. Besides, the pulling of the US would be a strategic gift ChineseWhich has already spent a lot to grow its global influence.
But now the Chinese IMF or the World Bank hopes to weaken. This would cause countries that have difficulty in paying debt or infrastructure to get more towards Chinese institutions.
In addition, China and others founded the new BRICS countries in the southern Global South in 2015 (NDB). NDB is often considered a competitor to the World Bank. NDB challenges Western financial power by giving less a dollar in currencies and facilitating a loan.
If the United States left, the IMF and the World Bank should move their offices from Washington from DC, maybe Japan, which is their second largest supporter. It would work against the US.
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