Jim Yong Kim’s exit as World Bank chief could give Donald Trump leverage over development lending to China
- Jim Yong Kim abruptly resigned as president of the World Bank more than three years before the end of his term
- It potentially could spark an international tussle over who replaces him as the Trump administration questions the development lender’s purpose
The surprise early departure of World Bank President Jim Yong Kim potentially hands US leader Donald Trump a key lever over development lenders with whom his administration has been at odds.
After reshaping the US presidency, traditional alliances, trade relations and the US Supreme Court, Trump now could have a chance to influence how countries like China access concessional lending.
But if Trump wants an American in the post, he will need to pick a candidate who can win the support of most shareholders, and will likely face many challengers.
As the biggest shareholder, the United States has sway over the selection of the new World Bank president, a post for 75 years always filled by an American, with the backing of European nations.
But having uprooted those alliances in his two years in office, Trump will find it difficult to simply submit a nominee for acclamation, especially as there have been growing calls for the institution to be guided by someone from the countries it serves.
“This White House has a pretty challenging path ahead if they think they want to install a candidate,” said Scott Morris, a former US Treasury official who worked with the World Bank and International Monetary Fund.