Yellen urges further World Bank reforms this year

THE World Bank should take on added reform measures this year, US Treasury Secretary Janet Yellen said on Wednesday, after initial steps to update the global lender’s mission and boost its financing capacity.

The revamp of the bank comes amid pushes for it to meet global challenges such as climate change.

“We should use the rest of the year to undertake additional reforms through a staged implementation approach,” Yellen said, at the start of a roundtable discussion.

The bank’s mission now “highlights the importance of inclusion, sustainability and resilience to global shocks,” she said, outlining various changes in the pipeline.

But she maintained that such goals remain “interconnected” with the World Bank’s existing work of poverty reduction and development.

Shareholders have also “agreed to undertake reforms that could add up to US$50 billion in financing over the next 10 years – while protecting the bank’s credit rating and long-term financial sustainability,” she added.

French Economy Minister Bruno Le Maire, who attended the roundtable with Yellen, said afterward that there is a “historic opportunity” to bring the necessary financial resources to developing countries – through the reform of development lenders.

He noted the need to narrow the growing gap between developed and developing countries, adding that “the situation now has become really critical.”

On Wednesday, Yellen said there needs to be efforts for further progress.

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Global leaders can tap upcoming events such as the Group of 20 Leaders’ Summit in September to “keep the momentum strong,” she said in her speech.

The United States is the largest shareholder of the World Bank Group.

In an interview with AFP ahead of the World Bank and International Monetary Fund’s spring meetings in Washington this week, Yellen said that key changes are expected to be unveiled at the gathering.

Other key issues on the spring meetings’ agenda include debt restructuring, and leaders at a global sovereign debt roundtable committed on Wednesday to further efforts to help speed up restructurings.

The debt roundtable is co-chaired by the IMF, World Bank and India, which currently holds the G20 presidency. AFP