Scott Bessent Calls Out IMF and World Bank, Pressures to Refocus
"Both devote disproportionate time and resources to issues like climate, gender, and social concerns—none of which fall within its mandate."
Quick overview
- U.S. Treasury Secretary Scott Bessent urged the IMF and World Bank to realign with their original mandates, criticizing their focus on vanity projects like climate change.
- Bessent emphasized the importance of these institutions in maintaining macroeconomic stability and development, warning that their expanded agendas undermine their core missions.
- He called for reforms to ensure the IMF and World Bank serve their stakeholders effectively, advocating for strict lending standards and technological neutrality in energy investments.
- Bessent highlighted that the Trump administration is willing to collaborate with these institutions as long as they adhere to their foundational purposes.
U.S. Treasury Secretary Scott Bessent called on the International Monetary Fund (IMF) and the World Bank to realign with their original mandates.
Bessent said that both institutions have strayed toward what he described as vanity projects—such as climate change initiatives—that dilute their effectiveness.
Speaking on the sidelines of the IMF and World Bank Spring Meetings, Bessent outlined his vision for U.S. engagement with the Bretton Woods institutions. He emphasized their crucial role in the global financial system but warned that their expanding agendas have undermined their core missions of macroeconomic stability and development.
“The Trump administration is ready to work with these institutions—as long as they stay true to their core mandates,” Bessent said in prepared remarks for the Institute of International Finance.
Bessent’s Message
“The IMF and World Bank still hold lasting value,” he stated. “But expanding their mandates has led them off course. We must pursue key reforms to ensure these institutions serve their stakeholders—not the other way around.” He also urged U.S. allies to join in the effort, noting that “‘America First’ does not mean America alone.”
Bessent stressed that the IMF should stick to its primary mission and maintain strict lending standards. “The IMF was once firm in promoting global monetary cooperation and financial stability. Today, it devotes disproportionate time and resources to issues like climate, gender, and social concerns—none of which fall within its mandate,” he said.
“At times, the IMF must be willing to say ‘No.’ It is under no obligation to lend to countries that refuse to implement necessary reforms.”
Regarding the World Bank, Bessent argued for technological neutrality and affordability in energy investments. “In most cases, this means investing in gas and other fossil fuel-based energy sources,” he said, while adding that the Bank could also support renewable energy projects, provided they include systems to manage intermittency in solar and wind power.
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