February 9, 2023

The reform of the World Bank, which should make it possible to better meet the financing needs of developing countries, should be able to begin in April, indicated Thursday the American Secretary of the Treasury, Janet Yellen.

“The first phase of implementation is expected to begin at the World Bank and IMF Spring Meetings in April,” said Joe Biden’s Minister of Economy and Finance, during a speech in Washington, at the Center for Strategic and International Studies (CSIS).

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This change was launched in October, during the annual meetings of the International Monetary Fund (IMF) and the World Bank, at the instigation of certain member countries, in particular the United States. “We are focused on evolving its vision, incentives, operating model and financial capability,” detailed Ms. Yellen.

This reform should indeed make it possible to mobilize funding more effectively, so that poor and developing countries are better able to cope with the crises posed by inflation, debt, or even climate change.

The management of the World Bank and the Board of Governors – the decision-making body, which represents the 189 member countries “are in in-depth discussion on measures to increase the financial room for manoeuvre”, said the Secretary of the Treasury.

“We are pursuing a phased implementation of this development”, she added and “The World Bank has produced an initial roadmap which it is now using as a guide for further discussions on specific reforms.”

Moreover, “We are coordinating closely with India as it makes the development of development banks a priority of its G20 presidency.”

A meeting of G20 finance ministers is scheduled for Bangalore, India, at the end of the month. Janet Yellen also felt that“we mightn’t stop there”, calling on the World Bank to put “quickly implement a second phase of work”.

The Minister of Finance has therefore requested that “additional reforms are decided upon and their implementation begins at the annual meetings of the World Bank and the IMF in October”. “We started with the World Bank. We then plan to do this with the regional development banks,” she added.