US should support World Bank and IMF - Bank of England boss - Voice of Asia

Andrew Bailey, the Governor of the Bank of England, recently called on the United States to continue supporting two important global economic institutions: the International Monetary Fund (IMF) and the World Bank. Bailey stated that he is "extremely closely watching" whether the Trump administration will change its level of support for these two institutions. He believes continued support is crucial for global stability.

According to sources in Washington, these two major institutions have been included in a White House executive order review aimed at assessing the United Nations and other international organizations. Bailey emphasized that preventing the fragmentation of the world economy is crucial. He believes that the support and participation of multilateral institutions, especially those like the IMF and the World Bank, are essential for the normal functioning of the global economy.

Finance ministries and central banks around the world are increasingly concerned about the possibility of the United States withdrawing from these institutions. A report entitled "Project 2025," written by key current White House personnel, proposes a blueprint for a potential Trump presidential term, including withdrawing from the IMF and the World Bank and terminating financial contributions. The report claims that these institutions' "espoused economic theories and policies are antithetical to America’s free market and limited government principles."

Under the White House executive order, all international intergovernmental organizations in which the United States participates will be reviewed to determine whether they are "harmful to American interests" and "whether they can be reformed." The six-month review could present recommendations for withdrawal to President Trump. Sources from the Group of Twenty (G20) say that during Trump's first term, his team proposed abolishing the IMF at the 2018 Buenos Aires summit.

The IMF and the World Bank are specialized agencies of the United Nations. The United States is the largest shareholder in both institutions, which were both created by the Bretton Woods Conference 80 years ago. The IMF provides loans of last resort to countries in financial distress and is responsible for investigating economic issues. The World Bank provides funding and low-interest loans to developing countries for poverty reduction and development. Currently, the Trump administration has not appointed personnel responsible for this area, but the development spending of the United States Agency for International Development is becoming a focus for spending cuts by Elon Musk's government efficiency unit.

It is believed that some members of the current administration are particularly concerned about the World Bank's loans to China. Regarding the possibility of the United States withdrawing from the IMF, the IMF stated yesterday that the organization has maintained a "long-standing cooperative" history with successive U.S. administrations. This relationship is viewed as critical for addressing global economic challenges.