US President Donald Trump’s protectionism is deteriorating the International Monetary Fund (IMF), the World Bank, and also the United States itself.
In an interview with CNBC on Oct 12, Scott Morris, a senior fellow of the research organization Center for
Global Development, appraised that the US was abandoning its position as the world’s financial leader
because of the leadership of the Trump Administration driving the country to move along the path of self-
isolation from the rest of the world, which could soon terminate its prestige and "soft power".
“In my opinion, in addition to the risk that the US will bypass other countries, there is a significant threat to
the institutions and organizations themselves,” he said. “The US can block IMF and World Bank decisions,
but the likelihood that China and other countries will seek other global financing platforms is growing.”
Morris judged that the main issue was the course on limiting the role of institutions applied by the U.S.
current administration, making other countries lose interests to invest in them.
When asked about the unsuccessful cooperation with the Asian Infrastructure Investment Bank (AIIB) under
the Obama administration, Morris appraised that the initial reaction of the retired president was erroneous,
and the White House would change its position in the near future to move closer to the AIIB, the World
Bank, and other organizations by making more trade agreements.
Talking about the slogan “First America”, the senior fellow stated that it was actually the U.S. departure from
its previous positions. “Trump’s desire to withdraw from multilateral agreements & international institutions
is totally detrimental and will crumble the United States.”
Morris also added that China – the world’s second-largest economy, which always sought to increase its
role in terms of economic and financial leadership, would benefit much from Trump’s decision.
“US officials seem willing to say "no" to any projects - "no" to the former ambitions of the World Bank, "no"
to trade agreements. It is difficult to imagine such an approach on the part of the US in a favorable light for
the rest of the world.”
The scenario that the world’s largest economy would lose leading positions has been warned dozens of
times by economists. The coming to power of Donald Trump seems to only accelerate this process.