US Treasury Secretary Bessent at the IMF conference says
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IMF, World Bank serve critical roles in international system.
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U.S. administration is eager to work with IMF and World Bank as long as they stay true to their missions.
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No one who financed or supplied the Russian war machine will be eligible for funds earmarked for Ukraine’s reconstruction.
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U.S. wants allies to work with it to rebalance international financial system and refocus IMF, World Bank to founding charters.
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Trump administration wants to help China and U.S. rebalance.
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China’s current economic model is built on exporting its way out of economic troubles.
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IMF devotes disproportionate time and resources to work on climate change, gender and social issues, crowding out macroeconomic work.
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IMF needs to call out countries like China that have pursued globally distortive policies, opaque currency practices.
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Economic stability and growth should be markers of IMF success, not how much money is lent.
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World Bank should no longer expect blank checks for vapid, buzzword-centric marketing and half-hearted reform commitments.
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World Bank can use resources more efficiently by focusing on increasing energy access.
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World Bank treating China, the second-largest economy in the world, as a developing country is absurd.
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World Bank must set firm graduation timelines to end lending to countries that have met graduation criteria.
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If China wants to play a role in the global economy commensurate with its actual importance, then the country needs to graduate up.
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China can start reform by moving economy away from export overcapacity, toward supporting its own consumers and domestic demand.
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Not every country is deserving of IMF support like Argentina; IMF must hold countries accountable to reforms.
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World Bank needs to use resources as efficiently and effectively as possible, demonstrate tangible value for member countries.
Bessent also adds:
- America first does not mean America alone
HMMM Plan B is starting as Plan A is not working that great
This article was written by Greg Michalowski at www.forexlive.com.
