Oct. 5 (Bloomberg) -- The U.S. should maintain its leading role in multilateral development banks to keep China and other nations from taking the American shares, the U.S. Treasury’s top international official said today.
Lael Brainard, Treasury undersecretary for international affairs, called the U.S. leadership “essential” to have an “outsize influence as leading shareholders at these organizations.”
Brainard cited the World Bank as an example where the U.S. has veto power over changes to the articles of agreement that govern bank membership and leadership. At the African Development Bank, the U.S. holds its own board seat to influence regional developments, she said.
“Other nations, particularly China, are eager to take up our shares in these institutions if we do not meet our commitments,” Brainard said in a speech at the Center for Strategic and International Studies.
--Editors: Kevin Costelloe, Paul Badertscher
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