Treasury Secretary Scott Besent on Wednesday called for a major overhaul for the International Monetary Fund and World Bank missions, but said that the United States is committed to maintaining its leadership role in global economic institutions.
In a speech on the occasion of the spring meetings of the IMF and the World Bank, in a moment of concern between policy makers that the Trump administration can completely withdraw the United States from funds and banks.
The United States has increased the global trade system in recent months, and the ideas of Trump administration on climate change, international development and economic equity are often with other nations that are shareholders in global institutions.
On Tuesday, the IMF downed its approach to development globally and in the United States as a result of President Trump’s punished tariff. Trade tension between the United States and China, the world’s largest economies, threatens to weigh production this year and next year.
In his comment, Mr. Besant defended the business works of the Trump administration and asked China to curb economic practices that he said that he was destabilizing international commerce. He said that the United States was engaged in trade talks with dozens of countries and expresses optimism that these dialogues would help to unbalance the world economy and make the global trade system more fair.
It is not clear when, or if, the United States and China will begin to engage in dialogue. Mr. Trump has said that he is expected to talk with Chinese leader Xi Jinping, but no formal conversation has been set.
Talking to reporters after his comment, Mr. Besant rejected speculation that Mr. Trump was considering unilaterally reducing the tariff that he had imposed on China before any conversation with Mr. Xi. Mr. Besant insisted that any step will need to be mutual to de-size business stress.
He said, “I don’t think the two sides believe the current tariff levels are durable,” he said.
The Treasury Secretary said, “It is equal to an ambargo, and a break between the two countries on business is not in line with anyone’s interest.”
Guo Jiyakun, a spokesman for China’s Foreign Ministry, said overnight that “if the US really wants to resolve issues through dialogue and negotiations, it should be threatened and forced to stop, and attach to the conversation with China on the basis of equality, respect and mutual gains.”
Mr. Besant clarified that despite the concerns of the United States, the Trump administration does not plan to walk away from the IMF and the World Bank.
“America first” does not mean America alone, “said Mr. Besant. “Conversely, it is a call for deep cooperation and mutual respect between business partners.”
He said, “Away from the stepping back, the ‘US First’ wants to expand American leadership in international institutions such as IMF and World Bank.”
But the Treasury Secretary did not withdraw his criticism of institutions, which were created to stabilize the world economy after World War II in 1944.
“IMF is suffering from mission creep,” Mr. Besant said in a comment to the International Finance Institute. “IMF was once unbreakable in its mission to promote global monetary cooperation and financial stability. It now dedicates time and resources to work on climate change, gender and social issues.”
Arguing that its meditation has oversee its economic mission, Mr. Besant said: “These issues are not the mission of IMF.”
The Treasury Secretary also had a difficult criticism for the World Bank, which focused on combating climate change under the Biden administration.
“The bank should no longer expect a vacant check for Vapid, Buzzword-concentric marketing, with half the commitments for improvement,” said Mr. Besant. “As the bank returns to its main mission, it should use its resources as efficiently and effectively possible. And it should do in ways that display tangible values for all member countries.”
Mr. Besant appreciated the bank’s plan under the leadership of Ajay Banga to consider abolishing its restrictions on lending for nuclear power projects. He said that the bank should be “technical neutral” and should give priority to power in energy investment.
“In most cases, this means investing in gas and other fossil-fuel-based energy production,” said Mr. Besant. “In other cases, this may mean that it will help in managing air and solar intermittent intercourse with the system to invest in renewable energy.”
Mr. Banga has demanded to emphasize the bank’s attention as the key to economic development and to prioritize private sector participation in projects around the world.
Last week, Mr. Banga said that he continued talks with the Trump administration about the direction of the bank.
“We are having a creative conversation with the US administration,” said Mr. Banga. “I don’t know where it will end, but I have no problem with the dialogue that I am doing.”
He said, “They are asking the correct question, and we are trying to give them the correct answer.”
