U.S. Treasury Secretary urges refocus at IMF-World Bank annual meetings

U.S. Secretary of the Treasury Scott Bessent has issued a statement ahead of the Annual Meetings of the World Bank Development Committee and the International Monetary Fund (IMF) International Monetary and Financial Committee. In his remarks, Bessent outlined U.S. priorities for strengthening global economic stability and urged both institutions to focus on their core missions.

Bessent highlighted recent changes at the IMF, including the consolidation of its climate and gender units into a single unit focused on macro-financial and structural policies, as well as efforts to remove non-core issues from its Board Work Program. He also noted that the World Bank has shifted towards a broader approach to energy by lifting its prohibition on financing nuclear power generation and increasing emphasis on quality in procurement decisions.

Despite these developments, Bessent called for further action: “Nonetheless, the IMF and World Bank must take more concerted steps to focus on their respective core missions and deliver greater impact to the countries they support and greater value to taxpayers from the United States and other shareholders.”

He discussed domestic policy under President Trump’s administration, emphasizing tax cuts, energy policy changes, and regulatory modernization as measures intended to boost economic growth and manufacturing in the United States. According to Bessent, “Thanks to actions taken by the Trump Administration, businesses are investing in America again. A revitalized private sector will propel economic growth and maintain America’s position as the most dynamic economy in world.”

On global economic conditions, Bessent acknowledged persistent challenges such as regional conflicts, governance issues, and overregulation that continue to hinder growth in many countries. He stressed that “Strengthening resilience and pursuing policies and projects that boost productivity will help countries withstand shocks and grow while improving economic prospects worldwide.”

Bessent addressed concerns about IMF surveillance activities: “We expect the IMF to strengthen its surveillance activities and to do so with objectivity and evenhandedness. This work should be focused on macroeconomic and financial stability, rather than other areas beyond the IMF’s expertise like climate and gender.” He also called for improvements in how IMF programs address balance of payments challenges among borrower countries.

The statement raised concerns about some member states relying too heavily on IMF financing without making necessary policy reforms. Bessent argued for stronger program conditionality: “Loan amounts and phasing should be commensurate with the scope and scale of reforms needed…often with frontloaded reforms and backloaded financing to help ensure reform commitment remains resolute.”

He also pointed out that successful recovery after crises often requires burden sharing among creditors: “While the IMF has increasingly assumed responsibility for facilitating bilateral debt negotiations… it continues to let recalcitrant creditors off the hook too easily…”

On anti-corruption efforts within lending programs, he stated: “Strong commitments to governance, anti-corruption, and effective safeguards must underpin lending programs…”

Turning attention back to the World Bank, Bessent advocated prioritizing investments that increase access to affordable energy sources—gas, oil, coal—and promote poverty reduction. He said graduation from multilateral development assistance should be an objective for supported countries: “Country self-reliance—and graduation from continual need for MDB support—should be the objective of World Bank support…”

He encouraged ending support for China through World Bank resources so staff can focus on poorer nations where needs are greatest.

The statement welcomed ongoing efforts by both institutions regarding critical minerals supply chains but pressed for continued improvement in procurement practices at the World Bank.

Bessent commented on governance structures at both organizations. At the IMF he said there is enough funding currently available but future quota discussions require a new formula; at the World Bank he noted lack of consensus around shareholding realignments.

He concluded by calling for fiscal discipline within both organizations’ administrative budgets: “At a time when countries around the world are tightening their belts…we expect flat growth of administrative budgets next year…and freezes on salaries…”

“As I said in the spring,” Bessent stated,“America First does not mean America alone. The United States ‘is in it to win it’ at the World Bank and IMF…”