Following the Trump administration’s unprecedented freeze on U.S. foreign assistance and the recent executive order calling for a review of all international intergovernmental organizations, whispers have begun to circulate about the possibility of the United States either diluting its share in the World Bank or pulling out entirely.
Experts told Devex that this is highly unlikely and there have been no official statements indicating that this is going to happen. The Trump administration could also take less radical steps and opt to cut contributions, seek to exert more control, or use its power and influence to reform the institution.
The U.S. is the largest shareholder in the World Bank — holding a 17.5% share. The next largest shareholder is Japan, which holds 7.3%. This not only gives the U.S. significant influence, but it also gives it veto power, which is only held by countries that have more than a 15% share. A withdrawal or dilution would not be in the best interest of the U.S., legal and development experts say.
About the author
Jesse Chase-Lubitz
Jesse Chase-Lubitz covers climate change and multilateral development banks for Devex. She previously worked at Nature Magazine, where she received a Pulitzer grant for an investigation into land reclamation. She has written for outlets such as Al Jazeera, Bloomberg, the Organized Crime and Corruption Reporting Project, and The Japan Times, among others. Jesse holds a master’s degree in Environmental Policy and Regulation from the London School of Economics.
