Trump's stance on World Bank: What to expect if he wins
- Tension existed between the US and the World Bank and IMF, with the US typically ignoring their economic policy advice.
- Yellen praised World Bank President Ajay Banga for utilizing private sector resources for development despite political uncertainties.
- The outcome of the upcoming US presidential election may significantly affect the World Bank's stability and funding resources.
In 2023, tensions between the US and the World Bank and IMF, established at Bretton Woods in 1944, continued as the US often disregarded the Fund's economic policy advice. Despite two US presidential candidates, Kamala Harris and Donald Trump, ignoring guidance to cut borrowing and debt, Treasury Secretary Janet Yellen praised World Bank President Ajay Banga for his efforts concerning development and climate change. Banga's agenda focuses on leveraging private sector resources for substantial new lending. The political landscape shifted with the resignation of David Malpass, a Trump appointee, which highlighted the political nature of World Bank leadership. The uncertain future of the Bank could be influenced by the outcome of the upcoming presidential election, especially given Trump's skepticism toward multilateral institutions and proposed funding cuts from the Heritage Foundation. However, the World Bank managed to secure new funding in the past under Trump due to the involvement of Ivanka Trump.