U.N. steps up criticism of IMF and World Bank, the other pillars of the post-World War II global order

Antonio Guterres says the International Monetary Fund has benefited rich countries instead of poor ones. And he describes the IMF and World Bank’s response to the COVID-19 pandemic as a “glaring failure”

From the ashes of World War II, three institutions were created as linchpins of a new global order. Now, in an unusual move, the top official in one — the Secretary-General of the United Nations — is pressing for major changes in the other two.

Antonio Guterres says the International Monetary Fund has benefited rich countries instead of poor ones. And he describes the IMF and World Bank’s response to the COVID-19 pandemic as a “glaring failure” that left dozens of countries deeply indebted.

Mr. Guterres’ criticism, in a recent paper, isn’t the first time he’s called for overhauling global financial institutions. But it is his most in-depth analysis of their problems, cast in light of their response to the pandemic, which he called a “stress test” for the organisations.

His comments were issued ahead of meetings called by French President Emmanuel Macron in Paris on Thursday and Friday to address reforms of the multilateral development banks and other issues.

Neither the IMF nor the World Bank would comment directly on the secretary-general’s criticisms and proposals. But Mr. Guterres’ comments echo those of outside critics, who see the IMF and World Bank’s leadership limited by the powerful nations that control them — a situation similar to that of the United Nations, which has faced its own calls for reform.

Maurice Kugler, a professor of public policy at George Mason University, told The Associated Press that the institutions’ failure to help the neediest countries “reflects the persistence of a top-down approach in which the World Bank president is a U.S. national appointed by the U.S. President and the IMF Managing Director is a European Union national appointed by the European Commission.”

Richard Gowan, the International Crisis Group’s U.N. director, said there is a lot of frustration with the U.S. and its European allies dominating decision-making, leaving African countries with only “a sliver of voting rights.” Developing countries also complain that the bank’s lending rules are weighted against them, he said.