US Treasury chief backs IMF, World Bank shift; says institutions on ‘right track’ after criticism

US Treasury Secretary Scott Bessent on Tuesday said the International Monetary Fund and the World Bank are moving in a “constructive way” signalling a softer stance a year after sharply criticising both institutions, AFP reported.Bessent said the two global lenders are now aligning more closely with their core mandates as he addressed an event on the sidelines of their spring meetings. He congratulated the leadership of both institutions, saying they were progressing positively in addressing global economic challenges.“The IMF is working on bringing Venezuela back in, to make it look more like a normal economy,” Bessent said, adding that he expects the fund to play a “very important role” there.On the World Bank, he said its leadership on energy and development was improving. “World Bank leadership in terms of energy and unlocking resources and stability for the very poorest countries, I think, it's back on a great trajectory,” he said.The remarks mark a shift from last year, when Bessent criticised the IMF and World Bank for focusing too much on social and climate-related issues instead of economic growth.He had then said the IMF was spending “disproportionate time” on topics such as climate change and gender, and urged the World Bank to prioritise core functions like boosting growth, reducing poverty and increasing investments.On Tuesday, Bessent said “I think the World Bank has made a good pivot,” particularly pointing to its renewed focus on nuclear energy.The World Bank had last year announced a return to nuclear energy financing after decades, as part of efforts to meet rising electricity demand in developing economies.Bessent said the institution is now taking a more supportive stance towards “energy abundance” and is “getting back to the core mission of lifting people out of poverty.”He also criticised an emphasis on social and climate issues, describing such priorities as “luxury beliefs.”