World Bank: There are constructive discussion underway with the US about commitment

The World Bank’s Banga is speaking and says:

• Foreign aid is a temporary method to help challenged countries, but will not be the long-term solution for development

• The right regulatory environment must be created to encourage private investment in developing countries and to create jobs

• The ‘all of the above’ energy strategy will be discussed with the board in June

• The energy strategy will include natural gas, geothermal, hydroelectric, solar, wind, and nuclear—but will require board approval

• It’s unclear how much the U.S. or some European countries will contribute to the International Development Association

• There are constructive discussions underway with the U.S. about its continued commitment to the World Bank

The World Bank is an international financial institution that provides loans, grants, and technical expertise to developing countries with the goal of reducing poverty and promoting sustainable economic development.

USAid which works with the World Bank was briefly shuttered by DOGE measures but it continues to operate as the U.S. government’s primary agency for administering foreign aid and development assistance.

However, there have been ongoing political discussions about potentially restructuring or reducing the scope of USAID. Some proposals have included:

• Merging USAID into the State Department

• Cutting its budget significantly

• Shifting foreign aid strategy toward bilateral deals or strategic investments

But none of these proposals have resulted in the agency being shut down.

USAID continues to:

• Fund global health, food security, and humanitarian relief programs

• Operate missions in over 100 countries

• Collaborate with partners like the World Bank, UN agencies, and NGOs

This article was written by Greg Michalowski at www.forexlive.com.