Budget Cuts Risk Loss Of US Global Influence |
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March 11, 2011
The US risks a sharp loss of influence at institutions such as the World Bank if Congress will not pay promised contributions, according to officials.
The US risks a sharp loss of influence at institutions such as the World Bank if Congress will not pay promised contributions, according to officials.
Funds for development banks are a prime target for Republicans in their quest to slash the federal budget. Their $61bn in proposed cuts for this fiscal year include almost two-thirds of Washington's $3bn in commitments to development banks and funds.
"At the World Bank, failure to finance the capital increase would lead to the loss of US power to veto changes to the governing agreement," said Timothy Geithner, Treasury secretary, in recent testimony to Congress.
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