May 03, 2018
From the article:
WASHINGTON (Reuters) - The Trump administration is expected to support a $13 billion capital increase for the World Bank in a deal that will reform the development bank’s lending rules and increase China’s shareholding, three people close to the matter said on Friday.
U.S. Treasury Secretary Steven Mnuchin is expected to lend his support for the plan at next week’s World Bank and International Monetary Fund spring meetings, the sources said. But the deal will need an endorsement from the World Bank’s shareholders and approval from its board of directors.
“Barring unforeseen challenges, there will be a capital increase,” one of the sources told Reuters.
...Scott Morris, a former Treasury official who now is a senior fellow at the Center for Global Development, said the capital increase deal is a victory for World Bank President Jim Yong Kim, an Obama administration nominee who has cultivated a relationship with the Trump administration, launching a women’s empowerment fund in cooperation with President Donald Trump’s daughter Ivanka.
Morris said the increase in shareholding for China “reflects reality of the global economy” with China’s growing economic clout. But it is unclear how Mnuchin will characterize the shift given Trump’s threats to impose steep tariffs on Chinese goods over China’s intellectual property practices, he added.