"A conservative plan to withdraw from global development banks threatens poor nations and U.S. credibility, analysts say."
"A conservative plan aimed at making the U.S. abandon global financial institutions threatens to topple efforts to steer more money toward battling climate change and other global challenges.
Such a move, which is called for in a 920-page governing playbook if former President Donald Trump wins a second term, could derail international efforts to push the World Bank and other institutions to increase programs for clean energy and climate adaptation, according to analysts. And it could make it harder for the bank to draw in more funding if its largest shareholder stops contributing.
The idea to withdraw from the world’s leading development banks is found in a single line within Project 2025, the playbook written by more than 100 conservative organizations with ties to Trump, the presumptive Republican nominee, and released by the Heritage Foundation.
It urges the U.S. to “withdraw from both the World Bank and the [International Monetary Fund] and terminate its financial contributions to both institutions,” saying they create “expensive middle-men” that “intercept” U.S. funding before it can be distributed for projects abroad.
Both banks are meeting for annual gatherings this week to discuss how they can squeeze more money out of their accounts, get it to countries faster and persuade major shareholders to inject more capital."
Sara Schonhardt and Scott Waldman report for E&E News April 17, 2024.
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