Georgieva: Both Trump and Harris Will Be 'Very Pragmatic' About IMF and World Bank If They Win

Photo: Kristalina Georgieva

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday, October 17, that she believes both US presidential candidates Donald Trump and Kamala Harris will be 'very pragmatic' about IMF and World Bank if they win. approach to the IMF and the World Bank (WB).

Georgieva told Reuters in an interview that the outcome of the presidential election on November 5 should be decided by the American people, and noted that she has had positive experience working with the current and previous administrations, including that of former President Trump.

When global financial leaders gather in Washington next week for the annual meetings of the IMF and World Bank, one of the big questions will be the future of American leadership at those institutions, given the tight race between Republican nominee Trump and Democratic challenger Harris.

Trump has promised to significantly increase tariffs on Chinese goods and other imports, part of his return to an “America First” policy and a move away from a multilateral approach to balancing imports and exports.

The conservative Republican “Project 2025” program, from which Trump has distanced himself, proposes withdrawing the United States from the IMF and the World Bank in order to support only bilateral aid and financing for the benefit of the United States.

Georgieva expressed a more optimistic view of the possible outcome of the US elections.

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“My experience with the United States, with any administration, has always been very positive, — Georgieva said. —The U.S. is very pragmatic. They approach things with a "we can do it" attitude. They are demanding, and I like that".

She worked with the Trump administration in 2018 as CEO of the World Bank, securing a $13 billion capital increase, and later, as head of the IMF, she quickly directed financial assistance to various countries to combat the impact of COVID-19 on the global economy.

At the time, the U.S. Treasury Department complained about the World Bank's excessive lending to China, and Georgieva said the Trump administration had demanded reforms to raise borrowing costs for middle-income countries to reduce such borrowing in exchange for support for capital increases.

“So from that perspective, I think we can expect the same very practical, pragmatic approach in the future from U.S. administrations,” she added.

On Tuesday, October 15, World Bank President Ajay Banga cited the 2018 capital increase as evidence that Trump recognizes the importance of American leadership at the two institutions. He added that the World Bank can provide development finance and help turn poor countries into thriving markets for American companies.

The United States is the largest shareholder in both the IMF and the World Bank, and has de facto veto power over major structural decisions.

Georgieva said that rather than condemning proposed new trade restrictions as “wrong,” the IMF is working to understand the reasons for the increase in trade restrictions, especially in developed countries like the United States and Europe.

“Let's try to understand what drives each country, and then analyze possible responses, their costs and benefits, and then work with countries to promote more rational decision-making,” she said.

Prepared by: Sergey Daga