Janet Yellen: World Bank reform would bring in an additional $50 billion

Janet Yellen (our illustration photo) has been advocating for a modernization of the international financial system for months. REUTERS - ALTAF HUSSAIN

Text by: RFI Follow

2 min

The U.S. economy is expected to continue to grow despite the banking crisis. This is the forecast of Janet Yellen, who anticipates a decline in inflation. In an interview with AFP, the US Treasury Secretary also gave a preview of the spring meetings of the IMF and World Bank next week. According to Janet Yellen, who has been advocating for a modernization of the system for months, the reform of the World Bank will bring an additional fifty billion dollars over ten years.

Advertising

Read more

Fifty billion dollars over ten years is not nothing: such an amount would represent, says Janet Yellen, "a 20% increase in the level of sustainable lending by the International Bank for Reconstruction and Development (IBRD)", a subsidiary of the World Bank. The US Treasury Secretary, however, does not specify by what mechanism the Washington institution will expand its financial capacity. In recent months, the idea of a possible capital increase and work on instruments to mobilise more private funds have been raised.

Dusting

Beyond the amounts, the World Bank should start dusting off its mission. To this must be added, says Janet Yellen, who has been advocating for this for months now: "Building resilience" in the face of "climate change", "pandemics" and "conflicts". The Bank's business model, which will celebrate its 80th anniversary next year, should also be updated. This includes " integrating global challenges into diagnostic tools and country partnership strategies."

Reform process

These spring meetings are expected to be only the beginning of a reform process launched in October 2023. With the departure of its president, David Malpass, by the end of June, the Biden administration hopes to accelerate. Appointed during Donald Trump's term, he has often been criticized for not taking climate change into account enough.

► Read also: Côte d'Ivoire: the IMF releases $ 3.5 billion to support the development plan

Newsletter Receive all the international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

Read on on the same topics:

  • United States
  • Currencies
  • Finance
  • World Bank
  • IMF