United States Secretary of the Treasury Scott Bessent has criticized both the International Monetary Fund (IMF) and the World Bank, calling for stronger reforms, greater accountability, and renewed focus on helping developing countries achieve economic self-reliance.
Speaking during the World Bank Development Committee and IMF International Monetary and Financial Committee meetings, Mr. Bessent says IMF programs must return to their core mission of helping countries resolve balance of payments challenges and regain market access after meaningful reforms.
He has warned that too many nations now rely on IMF financing as a routine lifeline while maintaining weak policy frameworks.
He had added that the growing number of repeat borrowers shows IMF programs often fail to produce lasting results.
Mr. Bessent has further cautioned that IMF conditionality must remain within the Fund’s expertise and not drift into non-core areas, such as those under the Resilience and Sustainability Trust, which he says has diluted the institution’s effectiveness.
The US Treasury Secretary has stressed that while IMF support is critical, it is not always sufficient to restore stability, especially in countries at risk of debt distress.
He has urged for greater burden-sharing among creditors and criticized the IMF for allowing some lenders to escape responsibility, leaving struggling populations to bear the brunt of adjustment measures.
Turning to the World Bank, Mr. Bessent has called for a sharper focus on poverty reduction, growth, and energy access.
He has urged the Bank to end its support for China and redirect resources toward poorer nations with greater development needs.
He has also pushed for an “all-of-the-above” energy financing approach, including gas, oil, and coal, saying the Bank’s current 45 percent climate co-benefits target distorts priorities away from real growth.
Mr. Bessent has maintained that energy abundance sparks economic abundance, noting that achieving sustainable prosperity requires both the IMF and World Bank to strengthen reforms that build transparency, resilience, and private sector-led growth in developing countries.
The United States has further emphasized that these institutions exist to deliver policy advice and financial support to countries in need and not to expand bureaucracies.
He has raised concern over rising budgets and inflated executive salaries, commending the World Bank for holding a zero real budget increase this year, while urging both Boards to enhance transparency, impose fiscal discipline, and freeze administrative and leadership salaries for heads of both institutions going forward.
By Best Jere.
