This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2017/07/19/us/politics/world-bank-initiative-multilateral-institutions.html

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
With World Bank Initiative, a Change in Tone for Trump Administration With World Bank Initiative, a Change in Tone for Trump Administration
(about 9 hours later)
WASHINGTON — A billion-dollar World Bank initiative to advance women’s entrepreneurship, funded in part by Saudi Arabia and championed by Ivanka Trump, might seem a laughably easy target for reproach.WASHINGTON — A billion-dollar World Bank initiative to advance women’s entrepreneurship, funded in part by Saudi Arabia and championed by Ivanka Trump, might seem a laughably easy target for reproach.
There is Saudi Arabia’s treatment of women — they aren’t even allowed to drive alone — and the growing role of the “first daughter” as a presidential adviser. Then there are President Trump’s misogynistic comments.There is Saudi Arabia’s treatment of women — they aren’t even allowed to drive alone — and the growing role of the “first daughter” as a presidential adviser. Then there are President Trump’s misogynistic comments.
But despite the concerns around governance and ethics, the so-called Ivanka fund might be a sign that — despite its “America First” policy — the White House is not as combative toward multilateral institutions like the World Bank and the International Monetary Fund as many in Washington expected.But despite the concerns around governance and ethics, the so-called Ivanka fund might be a sign that — despite its “America First” policy — the White House is not as combative toward multilateral institutions like the World Bank and the International Monetary Fund as many in Washington expected.
“The fact that they were going to the World Bank to begin with shows that they are not completely hostile to the institutions, and it points to more of an open door,” said Scott Morris, a senior fellow at the Center for Global Development, who served as deputy assistant secretary for development finance and debt at the Treasury Department under President Obama. “The fact that they were going to the World Bank to begin with shows that they are not completely hostile to the institutions, and it points to more of an open door,” said Scott Morris, a senior fellow at the Center for Global Development, who served as deputy assistant secretary for development finance and debt at the Treasury Department under President Barack Obama.
“Not just on this one trust fund but the broader relationship is on pretty good footing going forward.”“Not just on this one trust fund but the broader relationship is on pretty good footing going forward.”
The future of both Bretton Woods institutions has been looking particularly dim with Mr. Trump’s anti-globalization rhetoric. He has signed an executive order to roll back American involvement in international institutions and proposed a budget that would slash $650 million in funding to multilateral development banks over three years. A House bill, proposed by the Appropriations Committee and expected to change significantly through the legislative process, suggests far deeper cuts.The future of both Bretton Woods institutions has been looking particularly dim with Mr. Trump’s anti-globalization rhetoric. He has signed an executive order to roll back American involvement in international institutions and proposed a budget that would slash $650 million in funding to multilateral development banks over three years. A House bill, proposed by the Appropriations Committee and expected to change significantly through the legislative process, suggests far deeper cuts.
Born from a decades-old tussle between John Maynard Keynes of Britain and Harry Dexter White of the United States, the Washington-based organizations are seen as a tool of soft power for the United States.Born from a decades-old tussle between John Maynard Keynes of Britain and Harry Dexter White of the United States, the Washington-based organizations are seen as a tool of soft power for the United States.
“These institutions are a vector for plugging these countries into the liberal order created by the United States,” said Daniel F. Runde at the Center for Strategic and International Studies, who previously worked at the United States Agency for International Development.“These institutions are a vector for plugging these countries into the liberal order created by the United States,” said Daniel F. Runde at the Center for Strategic and International Studies, who previously worked at the United States Agency for International Development.
If the United States neglects its leadership — starting with projects on trade and climate change — rising powers have indicated their interest in taking up that role through fledgling regional institutions like the China-led Asian Infrastructure Investment Bank.If the United States neglects its leadership — starting with projects on trade and climate change — rising powers have indicated their interest in taking up that role through fledgling regional institutions like the China-led Asian Infrastructure Investment Bank.
“The U.S. is not the strong, solitary economic power that it was in the past. It was so overwhelming in its economic power that it could almost unilaterally determine what was going to happen,” said Tom Bernes, a fellow at the Centre for International Governance Innovation who was previously a Canadian representative at international financial institutions. “But the world is changing.”“The U.S. is not the strong, solitary economic power that it was in the past. It was so overwhelming in its economic power that it could almost unilaterally determine what was going to happen,” said Tom Bernes, a fellow at the Centre for International Governance Innovation who was previously a Canadian representative at international financial institutions. “But the world is changing.”
Yet, the Trump administration may not pose the threat many initially feared. Compared with plans to reduce funding in federal government departments, the proposed budget cut is but a minor deviation from President Obama’s commitment. And more moderate advisers, like Gary D. Cohn, the director of the National Economic Council, and H. R. McMaster, national security adviser, are trying to steer policy in an internationalist direction. Yet, the Trump administration may not pose the threat many initially feared. Compared with plans to reduce funding in federal government departments, the proposed budget cut is but a minor deviation from President Obama’s commitment. And more moderate advisers, like Gary D. Cohn, the director of the National Economic Council, and H. R. McMaster, the national security adviser, are trying to steer policy in an internationalist direction.
Both institutions have worked to ingratiate themselves with the administration.Both institutions have worked to ingratiate themselves with the administration.
The World Bank, for example, has pledged to advise the administration on infrastructure investment. And it has certainly not hurt that its head, Jim Yong Kim, has developed a close working relationship with Ms. Trump after meeting her a few months ago.The World Bank, for example, has pledged to advise the administration on infrastructure investment. And it has certainly not hurt that its head, Jim Yong Kim, has developed a close working relationship with Ms. Trump after meeting her a few months ago.
Last week, Mr. Trump proclaimed his support for Mr. Kim, whose legitimacy came into question after his presidency was extended hurriedly ahead of the November election.Last week, Mr. Trump proclaimed his support for Mr. Kim, whose legitimacy came into question after his presidency was extended hurriedly ahead of the November election.
The Women Entrepreneurs Finance Initiative unveiled at the G-20 meeting came out of Ms. Trump’s conversations with Prime Minister Justin Trudeau of Canada and then Mr. Kim. According to the World Bank, the idea was formally brought to the organization during a March meeting by a German official, who said the proposal came from the White House. The Women Entrepreneurs Finance Initiative unveiled at the Group of 20 meeting came out of Ms. Trump’s conversations with Prime Minister Justin Trudeau of Canada and then Mr. Kim. According to the World Bank, the idea was formally brought to the organization during a March meeting by a German official, who said the proposal came from the White House.
The facility was set up with a speed unusual at the World Bank and will use the $325 million raised through donors to draw commercial finance. Its goal is to help women in developing countries gain access to the funding, technical assistance and networks needed to start businesses.The facility was set up with a speed unusual at the World Bank and will use the $325 million raised through donors to draw commercial finance. Its goal is to help women in developing countries gain access to the funding, technical assistance and networks needed to start businesses.
The White House says Ms. Trump, who wrote her book “Women Who Work” before her father became president, will not be involved in operations and fund-raising. Ms. Trump, who briefly sat in for her father at sessions in Hamburg this month, serves as a senior adviser to the president. Beyond her official role, however, political analysts say it is Mr. Kim’s relationship with the first daughter that has proved pivotal given Mr. Trump’s emphasis on personal connections and keeping his family involved in his administration.The White House says Ms. Trump, who wrote her book “Women Who Work” before her father became president, will not be involved in operations and fund-raising. Ms. Trump, who briefly sat in for her father at sessions in Hamburg this month, serves as a senior adviser to the president. Beyond her official role, however, political analysts say it is Mr. Kim’s relationship with the first daughter that has proved pivotal given Mr. Trump’s emphasis on personal connections and keeping his family involved in his administration.
While there are obvious governance concerns around Ms. Trump’s role, the new project is viewed by some as a pragmatic exercise in courting the bank’s largest shareholder: the United States government.While there are obvious governance concerns around Ms. Trump’s role, the new project is viewed by some as a pragmatic exercise in courting the bank’s largest shareholder: the United States government.
“That’s the job in some sense of the leadership of the banks, whether you like it or not, to keep their shareholders on board,” said Edwin M. Truman, a senior fellow at the Peterson Institute for International Economics, who previously served as assistant secretary of the Treasury for international affairs. “It’s unreasonable to say the leadership of international organizations should ignore the politics of their nation members. It would be suicidal.”“That’s the job in some sense of the leadership of the banks, whether you like it or not, to keep their shareholders on board,” said Edwin M. Truman, a senior fellow at the Peterson Institute for International Economics, who previously served as assistant secretary of the Treasury for international affairs. “It’s unreasonable to say the leadership of international organizations should ignore the politics of their nation members. It would be suicidal.”
The International Monetary Fund, too, has been eager to draw attention to issues where its work aligns with the interests of the new administration in recent communiqués emphasizing, for example, the international consequences of persistent trade surpluses in countries such as Germany. “The I.M.F. and the new administration have developed a good working relationship, especially in areas where the U.S. has expressed a particular interest such as exchange rates, global imbalances and anti-corruption,” said Gerry Rice, a spokesman for the fund.The International Monetary Fund, too, has been eager to draw attention to issues where its work aligns with the interests of the new administration in recent communiqués emphasizing, for example, the international consequences of persistent trade surpluses in countries such as Germany. “The I.M.F. and the new administration have developed a good working relationship, especially in areas where the U.S. has expressed a particular interest such as exchange rates, global imbalances and anti-corruption,” said Gerry Rice, a spokesman for the fund.
Douglas Rediker, who represented the United States on the executive board of the I.M.F. under President Obama, pointed to the country’s interests “being openly prioritized by the I.M.F. in a way that you didn’t see in 2016.”Douglas Rediker, who represented the United States on the executive board of the I.M.F. under President Obama, pointed to the country’s interests “being openly prioritized by the I.M.F. in a way that you didn’t see in 2016.”
“That is not either good or bad — it’s a reflection of the institution’s largest shareholder requesting a deeper dive on issues that are within the I.M.F. mandate and are meaningful to the U.S., and I don’t think there is anything more shocking about it,” he said. “Ironically, you could argue the U.S. is asserting more of an affirmative agenda.”“That is not either good or bad — it’s a reflection of the institution’s largest shareholder requesting a deeper dive on issues that are within the I.M.F. mandate and are meaningful to the U.S., and I don’t think there is anything more shocking about it,” he said. “Ironically, you could argue the U.S. is asserting more of an affirmative agenda.”
The biggest concerns for those who support multilaterals are now Mr. Trump’s top picks at the Treasury. Adam Lerrick, for example, helped draft a 2000 congressional report that recommended clipping the wings of both organizations.The biggest concerns for those who support multilaterals are now Mr. Trump’s top picks at the Treasury. Adam Lerrick, for example, helped draft a 2000 congressional report that recommended clipping the wings of both organizations.
His appointment as deputy under secretary of the Treasury for international finance awaits Senate confirmation. And many other senior positions are yet to be filled with consequences for the pace of decision-making.His appointment as deputy under secretary of the Treasury for international finance awaits Senate confirmation. And many other senior positions are yet to be filled with consequences for the pace of decision-making.
“By failing to appoint officials to senior positions — to the Treasury, State Department — there is nobody for other governments to talk to on these issues,” Mr. Bernes said.“By failing to appoint officials to senior positions — to the Treasury, State Department — there is nobody for other governments to talk to on these issues,” Mr. Bernes said.
“This is the first G-20 where the United States has not been at the forefront of helping to shape the debate,” he said.“This is the first G-20 where the United States has not been at the forefront of helping to shape the debate,” he said.
Republican administrations have historically questioned multilateral institutions. The I.M.F. is viewed as a lumbering relic bailing out reckless nations. The purpose of the World Bank, providing loans and technical assistance to low-income countries, comes into question as emerging markets more easily gain access to capital in global markets.Republican administrations have historically questioned multilateral institutions. The I.M.F. is viewed as a lumbering relic bailing out reckless nations. The purpose of the World Bank, providing loans and technical assistance to low-income countries, comes into question as emerging markets more easily gain access to capital in global markets.
Yet, the White House’s true stance on the organization will become clear only in a moment of crisis in a strategically important economy, such as Egypt or Brazil. More imminent is the United States’ decision to support fresh loans for Greece.Yet, the White House’s true stance on the organization will become clear only in a moment of crisis in a strategically important economy, such as Egypt or Brazil. More imminent is the United States’ decision to support fresh loans for Greece.
Pointing to President George W. Bush’s term, Lawrence H. Summers, former Treasury secretary and Harvard president, says it is often the leaders who “huff and puff” against the Bretton Woods institutions that turn to them in crisis.Pointing to President George W. Bush’s term, Lawrence H. Summers, former Treasury secretary and Harvard president, says it is often the leaders who “huff and puff” against the Bretton Woods institutions that turn to them in crisis.
“The international financial institutions are the cheapest and best lever we have to push to further defense of our economic and geoeconomic interests,” he said. “It would be a shame if these institutions either stagnated or their leadership came to embody values very different to those of the United States.”“The international financial institutions are the cheapest and best lever we have to push to further defense of our economic and geoeconomic interests,” he said. “It would be a shame if these institutions either stagnated or their leadership came to embody values very different to those of the United States.”