Economist backs World Bank caution against hasty reaction to Trump policies
Banga: "I have dealt with him (Trump) in the past. He is a very practical man, he understands numbers, he understands leverage and he understands advantage
A renowned economist is backing the World Bank’s caution against hasty reactions by global officials to U.S. President Donald Trump’s drastic policy changes.
In a recent interview with Reuters, on the sidelines of the Mission 300 Africa Energy Summit in Tanzania’s commercial capital, Dar es Salaam, World Bank president, Ajay Banga, tipped policymakers worldwide to carefully assess which of Trump’s policies would be implemented before they could respond.
Trump’s first few days in office have been marked by a series of executive orders and policy proposals, including tariffs on Canada, Mexico, and China, as well as a review of all existing foreign assistance programs.
Banga described Trump as a practical leader who understands numbers and leverage, emphasizing the need for African leaders to carefully assess negotiation strategies that could secure favorable deals for their countries.
“I have dealt with him (Trump) in the past. He is a very practical man, he understands numbers, he understands leverage and he understands advantage. You have to go to him and explain to him what you bring.” – Banga told Reuters
Commenting on Banga’s remarks, UK-based Malawian economist Vellie Nyirongo acknowledged that Malawi could be directly affected by some of Trump’s executive orders.
However, he cautioned against panic citing that the U.S. is merely realigning its policies to serve its own strategic interests.
Nyirongo stressed that the US policy shifts should rather serve as a wake-up call for Malawi to take urgent action to revitalize its economy.
“But as for the Malawi economy, as in terms of our economy, in the short run, we will be affected if they stopped that kind of aid. So, for example, America has been there building lots of schools in Malawi. That means tenders, that means jobs, that means all of that.” – Nyirongo said
“America has been helping in the health sector. And that means unhealthy people in the economy because now, you know, these things, people are worried and said even there is order to stop helping World Health Organization.”
Among others, he highlighted the significance of expanding the country’s export base to enhance competitiveness in international trade and mitigate the impact of external shocks.
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