$70 billion sounds like a large number. Even in Washington.
However, simply by withdrawing from the multilateral development banks – such as The World Bank – that’s how much would be returned to U.S. taxpayers.
And it is easy to do.
The Articles of Agreement for the International Bank for Reconstruction and Development – the main lending arm of the World Bank – state:
Any member may withdraw from the Bank at any time by transmitting a notice in writing to the Bank at its principal office. Withdrawal shall become effective on the date such notice is received.
There it is. The President sends the World Bank notice that the U.S. is withdrawing and its done.
There will be pushback that this requires Congressional approval. Yet, the authorizing legislation only “authorizes” the President to accept membership. It does not compel it.
The Bretton Woods Agreements Act states:
SEC. 2. 22 U.S.C. 286 The President is hereby authorized to accept membership for the United States … in the International Bank for Reconstruction and Development (hereinafter referred to as the ‘‘Bank’’), provided for … the Articles of Agreement of the Bank as set forth in the Final Act of the United Nations Monetary and Financial Conference dated July 22, 1944, and deposited in the archives of the Department of State.
The President should simply take the position that if he has the option to accept membership, he certainly has the option to withdraw.
Better yet, once the withdrawal is accomplished, we get our money back! $3.7 billion from the IBRD alone.
Again, from the Articles of Agreement:
(b) At the time a government ceases to be a member, the Bank shall arrange for the repurchase of its shares as a part of the settlement of accounts with such government in accordance with the provisions of (c) and (d) below. For this purpose the repurchase price of the shares shall be the value shown by the books of the Bank on the day the government ceases to be a member.
The agreements for all of the multilateral development banks and associated groups such as the international Development Association make similar provisions. The total is $70 billion.
For more detail, read our How to DOGE the World Bank: A Primer.
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This concerns a guarantee (with a 0,00001% chance that it will ever be called upon) not actual paid-in capital. As the risk is so low, the Treasury department doesn’t even hold assets against this risk. Leaving the World Bank would therefore not get the US taxpayer the $70 billion (this is fictional, just an IOU) but it would weaken America’s leadership in the most important development organization in the world.
Thank you for a very thoughtful comment. I thought it worth a new post rather than just a “reply” as those get buried.