With two divided approaches to investment in fossil fuels, increasing numbers of calls have arisen for the US to cut funding to the World Bank, which uses its funds to contradict the vision of today’s America.
World Bank chief Jim Yong Kim has announced he plans to cut support for the vast majority of global oil and gas development programmes and in turn will stump the growth of the world’s poorest countries.
Meanwhile, the US treasury’s position is to promote the use of fossil fuels in developing countries in order to aid economic development. The US has also said it will use its position on the World Bank to answer calls from the developing world to lift restrictions in funding for fossil fuels.
As a result of the conflict, there have been calls for US funding of the World Bank to be diverted to organisations such as USAID that would help achieve the goal of providing developing countries greater opportunities of prosperity.
The current mission of the World Bank is a stark difference to that of its founding members which set up the organisation to promote and encourage the development of struggling countries.
However, Professor Jason Kirk, author of ‘India and the World Bank: The Politics of Aid and Influence’ said he would: “expect developing countries to continue to exploit their oil and gas deposits even without the World Bank’s help, even if that means they reap less revenue from these industries due to their weaker bargaining power.”
The immeasurable impact that this change in direction has had on less developed economies will only change once a major player in these organisations, such as the US, takes a stand against the World Bank to help less developed countries grow.