World Bank chief Kim’s resignation paves way for Trump appointee
World Bank President Jim Yong Kim’s surprising resignation has created a vacancy for US President Donald Trump to fill, a prospect that could cause other countries to clash with Washington over its influence at the world body.
Mr Kim was appointed twice by Mr Trump’s predecessor, Barack Obama, and had differed in opinion with the Trump administration on issues such as the use of coal, a sector that the American leader has sought to revitalise in his first two years in office.
Mr Kim had pushed financing for green energy and largely dropped support for coal power investments, but had avoided clashes with the Trump government and worked with his daughter Ivanka on a woman’s entrepreneurship initiative in 2017.
The bank has been led by Americans and chosen by the US president since its founding after the Second World War, so Mr Trump will have the power to select his own leader for the world lender. If Mr Kim had stayed on, Mr Trump would have had that power only if he had secured a second term in office. The White House has yet to confirm that the president will nominate a successor.
Mr Kim’s resignation, announced on Monday, was all the more surprising because it came three years before the end of his tenure. But sources close to him said that he left of his own choosing and was not forced out by the Trump administration.
His exit and Mr Trump’s influence at the bank will concern developing nations that seek greater representation from emerging markets instead of US hegemony at the institution. They also rely on World Bank lending, so Mr Trump’s decision will matter. As tensions rise between the US and China, coupled with rising US interest rates, any Trump candidate may change the bank’s use of its capital.
Mr Trump could select a candidate who shares his dislike for global institutions and follows his America First doctrine. The more hardline Mr Trump’s candidate is, the tougher it will be for him to get him or her through the door at the World Bank, experts said, because any candidate still has to be approved by the lender’s executive board.
Mr Kim held the role since 2012, and was chosen by Mr Obama because of his background as a development professional and was not a traditional pick from the financial sector.