logo
Developing countries should fast-track US trade deals: World Bank president

Developing countries should fast-track US trade deals: World Bank president

France 2426-04-2025

Ajay Banga was interviewed by AFP at the World Bank and International Monetary Fund's Spring Meetings, which have been held this year under a cloud of uncertainty about President Donald Trump's stop-start tariff rollout.
The Bank has been advising developing countries to get a deal done quickly with the United States, and to then focus attention on cutting trade barriers and boosting regional flows of goods, Banga said.
"You need to negotiate trade systems with the US at the earliest possible (opportunity)," he said. "If you delay, it hurts everyone."
Trump's tariffs have roiled financial markets, sent volatility surging and spooked investors and consumers.
Since returning to office in January, the US leader has imposed a "baseline" 10 percent tariff on most countries, with much higher duties on China, and 25 percent sector-specific levies on areas including steel, aluminum, and automobiles not manufactured in the United States.
He also introduced much higher tariffs on dozens of countries -- which have since been temporarily paused -- accusing them of having an unfair trade balance with the United States.
Bessent 'not wrong' on China
Banga also addressed the criticism leveled by US Treasury Secretary Scott Bessent at the Bank earlier this week.
Bessent criticized China's "absurd" developing country status and called on Banga and IMF Managing Director Kristalina Georgieva to "earn the confidence of the administration."
"I don't think he's wrong," Banga said of Bessent's comments on China.
"A country that is the size of China and the capability of China, at some point, should no longer be taking money from IBRD," he said, referring to the International Bank for Reconstruction and Development -- an arm of the World Bank that lends largely to middle-income countries.
Such a move would require the support of the World Bank's executive board, which is made up by member states.
China, Banga said, borrowed around $750 million from the IBRD last year, while paying billions of dollars to the institution in repayments and donations.
"My view is, I've brought it down to 750 (million), and I'm trying to figure out a way to deal with China to bring it down further," he said. "I want to get it done. And that's what I'm talking to the Chinese about."
Banga said the Trump administration's criticisms of the World Bank, which included "expansive policy overreach," were not unusual, citing newly elected governments in countries including France, Japan and Korea.
"I keep telling people this is a perfectly constructive request, to say, tell me and show me that you guys are the kind of people that advance the interests of my taxpayer, of my country," he said.
"I take it in that spirit," he said. "There's nothing wrong with it."
Energy at 'lowest possible cost'
Since taking the helm of the Washington-based development lender in 2023, Banga has pushed to streamline operations and encourage private sector participation, while focusing on job creation and electricity connectivity.
Among the Bank's current priorities is a push with the African Development Bank to connect 300 million people in sub-Saharan Africa to electricity by 2030 -- a process that will require a vast amount of new energy to be brought online.
"You should try and get (energy) in the best, accessible way and the lowest possible cost," Banga said, suggesting that in addition to renewable power, nuclear and gas could help provide a base load -- two energy sources the World Bank is currently hesitant to finance.
The Bank's executive board is set to discuss its energy strategy in June, Banga said, adding that funding for both nuclear and gas would likely be on the agenda.
Banga said the Bank is also pushing to encourage private sector job creation in developing countries -- beyond simply outsourcing jobs from advanced economies.
"Because then you end up with challenges in (advanced economies), and you can see that people are speaking about them with their votes," he added.
© 2025 AFP

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The most eye-catching products at Paris's Vivatech trade fair
The most eye-catching products at Paris's Vivatech trade fair

France 24

timean hour ago

  • France 24

The most eye-catching products at Paris's Vivatech trade fair

Here are some of the highlights of this year's show gathered by AFP on the scene: - Anti-counterfeiting AI - For humans, spotting the difference between a Lacoste polo shirt and a fake sporting the brand's crocodile logo can be tricky. But French startup Vrai AI believes its artificial intelligence model can tell the two apart based on a simple photo. "AI can detect micro-mistakes" made by counterfeit manufacturers of products like off-the-rack clothes, banknotes or even anti-malarial medications, co-founder Hugo Garcia-Cotte tells AFP. "It's more reliable than humans," he adds. Lacoste has been testing the AI model since November, with customs services in countries like Cameroon and Senegal also taking an interest. Robotic telemedicine Scooting around on castor wheels, column-shaped robots from Hong Kong firm Robocore can serve as mobile advertising billboards -- but for now are mostly deployed for medical purposes in hospitals and retirement homes. "We are in about 200 elderly homes in the United States, 1,000 elderly homes in Hong Kong, and we are in a lot of hospitals as well," boss Long Hei Roy Lim tells AFP. The robots, each a few feet high, use AI to navigate environments autonomously, including taking the lift. They can also analyse patients' medical data and have conversations powered by chatbots from American developer OpenAI or Chinese competitor DeepSeek. Robocore says its robots can save time for health workers, whose workload is cut to simply checking up on what the robots have distributed to patients -- hopefully limiting the impact of doctor shortages. With 50,000 units deployed across 33 countries, Robocore was hoping to expand into new markets thanks to its attendance at Vivatech. Nimble electric vehicles At just 79 centimetres (two and half feet) wide and 2.4 metres (seven and a half feet) long, French startup Aemotion's four-wheeled electric vehicle is designed to weave through traffic, saving commuters time spent in jams. Built in central France, the black transport that's not quite a motor scooter nor really a car is fully enclosed and can carry two people at up to 115 kilometres per hour (70 mph). "We aim to sell 5,000 of these a year within five years," company chief Alexandre Lagrange told AFP at the company's stand, where he is showing off the third version of Aeomotion's prototype. Pre-orders are already open for the vehicle, with the company aiming to get road licensing early next year, with a price tag of 20,000 euros ($23,000). The first drivers will get their hands on one in late 2026 or early 2027, co-founder Alain Dublin said. Smart shoes Imagine being guided on a walk around busy city streets not by brightly-coloured signs and traffic lights, but by vibrations in your feet. That's the promise of Japanese start-up Ashirase, which has developed a vibrating tool that slips into shoes aimed at making life easier for visually impaired people. 'We use AI for accurate positioning, by mixing the sensor data from the Ashirase device and location data from (a) smartphone,' development chief Ryohei Tokuda said. Users simply have to select a destination in the accompanying app and the buzzing inserts will let them know when to turn. Backed by carmaker Honda, Ashirase's smart shoe upgrades are already on sale in Japan. It hopes to bring them to Europe starting with a launch in Germany in September.

Protests over police killing in Kenya as govt presents budget
Protests over police killing in Kenya as govt presents budget

France 24

timean hour ago

  • France 24

Protests over police killing in Kenya as govt presents budget

The government carefully prepared its new finance bill with the aim of avoiding the massive protests over tax hikes that engulfed Kenya a year ago. But the killing of 31-year-old teacher Albert Ojwang while in police custody last weekend, after he was arrested for criticising a senior officer online, has reawakened anger over police brutality in the east African country. "You can't kill one of us in prison and then expect us to just lie down," said Tiffany, 22, a protester in Nairobi's business district who gave only her first name. Hundreds of protesters were spread in small groups across Nairobi's business district, with some throwing rocks at police who fired back with tear gas, while at least two cars were set alight. AFP reporters saw at least three people wounded by rubber bullets, with one taken to hospital. The unrest was limited compared to the protests last year that peaked when thousands stormed parliament on June 25, forcing President William Ruto to cancel a finance bill that would have raised taxes on many everyday items. At least 60 people were killed in the weeks of youth-led protests in June and July 2024, and rights groups say dozens more were illegally detained by security forces in the aftermath. The east African nation is a regional economic powerhouse but tensions have simmered over a rising cost of living, a stagnant job market and rights abuses. This year, the government played it safe with its finance bill, focusing tax hikes on businesses rather than consumers. Finance Minister John Mbadi acknowledged last year's protests had highlighted "the importance of values and principles of governance" and called for a minute of silence in parliament for protesters who lost their lives. "To win public trust, we have strengthened public participation in all policy formulation, including the budget-making process," he said, referring to a new online portal in which citizens could give their views. But there was anger last month when a software designer was arrested for creating her own website that criticised the budget and allowed people to email the government with complaints. 'Avoid controversy' Kenya faces a daunting task in boosting social services and investment at a time when its heavy debts mean interest payments outweigh its spending on health and education. Analysts say the new budget is unlikely to provoke the public anger of last year. It seeks to boost revenues by cutting government spending and closing tax loopholes, though critics say it still includes backdoor price increases and will hurt small businesses. "This year's finance bill is, in comparison to last year's, very much seeking to avoid controversy," said Patricia Rodrigues, of global consultancy Control Risks. But businesses will be impacted by increases in income taxes and social contributions, she said. In a difficult global environment, the World Bank has reduced its growth projections for Kenya from 5.0 to 4.5 percent in 2025. And rights abuses have become a volatile issue. "What we are demanding is for the deputy inspector general to resign, and then he should be arrested," said protester Anami Daudi Toure, 27, on Thursday. © 2025 AFP

New night train to connect 100 European cities by 2035
New night train to connect 100 European cities by 2035

Euronews

timean hour ago

  • Euronews

New night train to connect 100 European cities by 2035

Sleeper trains are enjoying a booming renaissance in Europe at the moment, but some travellers are still put off by the idea of sharing a cabin with strangers. While many night services offer two-bed or single cabins, they are usually an expensive option and tend to sell out quickly.. Now, a new company is launching sleeper trains with entirely private rooms - and they promise tickets won't be more than the price of a flight. Nox, a Berlin-based startup, says its mission is to offer a real alternative to short-haul flights in Europe. From 2027, the company plans to operate its first Europe-wide overnight trains with cabins designed for one or two passengers. 'Sleeping while a train gets you across Europe is a great concept. But today people have to share their cabins with strangers, beds are tight, and it's often more expensive than air travel,' says Thibault Constant, co-founder of Nox. 'We want to change that and make night trains an essential part of European travel.' Constant, who is known as 'Simply Railway' to his over half a million social media followers, has more than 400 night train trips worldwide under his belt. He says this experience has been a crucial influence on the design of the new sleepers. There will be three room categories: a single loft for one passenger with an upper-level bed and a seat and table; a double loft with a double upper-level bed and two seats and a table; and a double vista with easy-entry beds, the lower of which converts into seating. All three room categories will have two-metre-long beds, and enough space to stand up and store your luggage. Some cabins will also offer windows with panoramic views. Fellow founder Janek Smalla says the room design allows them to fit more people into their trains than traditional operators can. 'This, paired with a strict focus on standardisation and operational excellence, will allow us to offer affordable fares on over 35 European routes,' he adds. The aim is to offer night train connections between 100 European cities by 2035. These include Paris, Barcelona, Amsterdam, Copenhagen, Warsaw, Budapest and Rome. The company wants the network to become a viable alternative to short-haul flights, saying it aims to 'offer ticket prices as low as air fares'. Interested travellers can already explore planned timetables and prices on the Nox website. Single rooms will start at €79 and double rooms at €149. There will be a food and drink service on board, space for bikes, and wheelchair-accessible coaches. Travellers can join the free Early Bird Club to stay updated, receive discounted rates, and gain early access to bookings.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store