U.S. Urged to Refocus World Bank and IMF on Debt Transparency and Reforms

Experts call for ending bailouts and pushing for policy changes to address unsustainable debt in developing countries.

Apr. 8, 2026 at 12:20pm

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As the World Bank and IMF hold their spring meetings, experts are urging the U.S. to use its influence to refocus these institutions on transparency, macroeconomic stability, and policy reforms, rather than supporting debt forgiveness or expanding global governance. Past debt relief efforts have failed to address the root causes of unsustainable debt, which has continued to rise as countries borrow from China and private creditors outside the Paris Club framework.

Why it matters

The U.S. has a significant voice in the World Bank and IMF, and how it chooses to wield that influence will shape the approach these institutions take to the growing debt crisis in many developing countries. Calls for debt forgiveness or expanding global governance bodies are unlikely to address the underlying issues, and may actually create new incentives for irresponsible borrowing.

The details

Experts argue that past debt relief efforts, such as the Heavily Indebted Poor Countries (HIPC) Initiative, have failed to solve the problem of unsustainable debt, as countries have simply accumulated new debts from China and private creditors. This has led to a 'borrow-and-bailout' cycle, with developing countries repeatedly seeking debt relief. The U.S. should instead push the World Bank and IMF to focus on transparency, sound policy reforms, and holding countries accountable, rather than supporting debt forgiveness or expanding global governance bodies like a 'global debt authority'.

  • The 2026 spring meetings of the World Bank and IMF will take place from April 13-19 in Washington.
  • The HIPC Initiative was launched in 1996 to address unsustainable debt in low-income countries.

The players

Brett D. Schaefer

A senior fellow at the American Enterprise Institute (AEI) who focuses on multilateral treaties, peacekeeping, and the United Nations and international organizations.

Scott Bessent

The U.S. Secretary of the Treasury, who has advised refocusing international financial institutions on transparency, macroeconomic and financial stability, and promoting sound policy reforms.

William Easterly

A former World Bank economist who argued that past debt relief initiatives merely created the capacity for developing countries to accumulate new unsustainable debt.

United Nations

An organization that has called for restructuring the governing bodies of the IMF and World Bank or creating a 'global debt authority' to oversee debt restructurings.

Paris Club

A group of 22 major bilateral donors that has previously forgiven or restructured debt and committed to provide future assistance at highly concessional rates or through grants.

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What they’re saying

“The U.S. should, instead, follow the advice of Secretary Scott Bessent and use its influence to press international financial institutions to 'get back to basics' by refocusing them on transparency, macroeconomic and financial stability and promoting sound policy reforms needed for a 'future that no longer relies on donor assistance.'”

— Brett D. Schaefer, Senior Fellow, American Enterprise Institute

“Debt relief simply opened space for governments to assume new debts and created an expectation, built on past debt forgiveness, that future unsustainable debt would also be forgiven.”

— William Easterly, Former World Bank Economist

What’s next

The U.S. should use its influence at the World Bank and IMF spring meetings to push for a renewed focus on debt transparency, sound policy reforms, and holding countries accountable, rather than supporting debt forgiveness or expanding global governance.

The takeaway

Past debt relief efforts have failed to address the root causes of unsustainable debt, which has continued to grow as countries borrow from China and private creditors outside the Paris Club framework. The U.S. should leverage its influence at the World Bank and IMF to refocus these institutions on core priorities like transparency and policy reforms, rather than supporting debt forgiveness or expanding global governance.