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Subject

World Bank leadership change.

Significance

The arrival of Bulgarian economist Kristalina Georgieva as second-in-command at the World Bank Group may have a steadying effect on the institution, which faces uncertainties over its future size, shape and role as the United States retreats from multilateralism following the election of President Donald Trump.

Impacts

Georgieva’s insider background and experience as EU budget chief will help her argue for continued US funding of the Bank.

The concept of an ‘infrastucture finance cascade’ may weaken arguments that the Bank should withdraw from middle-income countries.

Should the US administration block a World Bank capital deal, emerging economies could desert the Bank and favour new alternatives.

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