World Bank Group President Jim Yong Kim unexpectedly resigned on Monday, more than three years before his term ends in 2022, amid differences with the Trump administration over climate change and the need for more development resources.
In April 2018, the Bank Group's Governors overwhelmingly approved a historic USD$13 billion capital increase for IBRD and IFC that will allow the Bank Group to support countries in reaching their development goals while responding to crises such as climate change, pandemics, fragility, and underinvestment in human capital around the world.
Kristalina Georgieva, the World Bank's Chief Executive Officer, would act as interim president of the organization until a new President emerges.
"To that end, Kim has announced that, immediately after his departure, he will join a firm and focus on increasing infrastructure investments in developing countries".More news: Brian Flores Set for Multiple Head Coach Interviews
The World Bank has a remit to support worldwide development projects.
Under Kim, the bank set the goal of eliminating extreme poverty by 2030 and ramped up financing to developing countries. Its sister lending agency, the International Monetary Fund, has always been headed by a European.
But because "Trump has repeatedly voiced disdain for multilateral institutions and questioned USA foreign aid commitments", it's likely other countries - including developing nations - may push back against his authority, CNN noted.
The decision is likely to give US President Donald Trump decisive influence over the next leadership of the institution although Washington's control over the 189-member global development lender has faced mounting criticism.More news: No Deal Out Of 'Contentious' Shutdown Meeting At The White House
"Serving as President and helping position the institution squarely in the middle of all these challenges has been a great privilege", Kim said.
The Trump administration may face resistance from other countries if the president puts forward a candidate openly hostile to the bank, he said.
Kim's permanent successor will be decided by the World Bank's board of directors. He was born in Seoul and grew up in Iowa.
Kim cultivated close relations with Trump's daughter Ivanka, who works as a White House adviser.More news: Forget Concrete, Let's Build A Steel Wall Instead