World Bank President Jim Yong Kim resigns abruptly
Jim Yong Kim, the president of the World Bank, announced Monday that he is resigning at the end of January.
Kim’s unexpected departure, nearly three years before his term was set to expire, is likely to set off a fierce battle between the Trump administration and other countries that have complained about the influence the United States exerts over the World Bank.
The official announcement provided no reason for his sudden departure. It will give President Trump the opportunity to nominate his choice to fill the post.
The 189-nation World Bank is the largest government source for development funding, providing low-cost loans for projects around the world.
Since the creation of the World Bank at the end of World War II, its leaders have all been Americans. Its sister lending agency, the International Monetary Fund, has always been headed by a European.
Other countries, including China and other Asian nations, have complained about this pattern. The IMF, which provides emergency loans to countries in economic crisis, is currently headed by former French Finance Minister Christine Lagarde.
Kim, the former head of Dartmouth College, was tapped by President Obama to lead the World Bank in 2012. He was nominated by Obama for a second term in August 2016.
In his resignation statement, Kim said he planned to join a firm that will focus on increasing infrastructure investments in developing countries. He will also rejoin Partners in Health, an organization he co-founded more than 30 years ago to provide medical support to poor nations.
The World Bank said that beginning Feb. 1, Kim will be succeeded on an interim basis by Kristalina Georgieva, its chief executive.
“It has been a great honor to serve as president of this remarkable institution, full of passionate individuals dedicated to the mission of ending extreme poverty in our lifetime,” Kim said.
Kim’s permanent successor will be decided by the World Bank’s board of directors. The United States is the largest shareholder in the bank, which is headquartered in Washington.
Kim, the World Bank’s 12th president, faced a number of crises during his tenure, including marshaling resources to deal with the Syrian refugee crisis.
Your guide to our new economic reality.
Get our free business newsletter for insights and tips for getting by.
You may occasionally receive promotional content from the Los Angeles Times.