Treasury Secretary Demands IMF and World Bank Return to Core Mandates

Treasury Secretary Scott Bessent told attendees at the IMF and World Bank Spring meetings that both institutions must abandon mission creep and return to their core mandates of economic growth and poverty reduction.

In his speech, Mr. Bessent claimed that the IMF improperly expanded into areas like climate change, gender, and social issues, which distract from its primary economic focus. Mr. Bessent stated that the institutions need to drop these extraneous topics to restore their relevance and impact on the global economy.

Mr. Bessent emphasized the need for greater financial discipline and accountability within both organizations. He argued for the World Bank to strictly implement a policy to transition wealthier countries away from Bank support to free up resources for poorer, less creditworthy nations. He also stated that both the IMF and World Bank should demonstrate accountability to their shareholders by maintaining flat administrative budgets and restraining generous staff and board compensation packages.

Addressing energy policies, Mr. Bessent said the World Bank must abandon its forty-five percent climate finance target, arguing that it distorts economic decisions and breeds inefficiency. He asserted that the Bank should support an "all-of-the-above" energy strategy that includes fossil fuels like coal, oil, and natural gas to promote energy abundance and economic growth.