Dhaka, May 2 -- The International Monetary Fund and the World Bank are in a difficult position. Established to uphold global rules and support development, they are now caught between an aggressively nationalist America - their largest shareholder - and the rest of the world. If their leaders speak truth to power, they risk US President Donald Trump's wrath. If they don't, they risk their own legitimacy.

The challenge of walking this tightrope was evident at last week's Spring Meetings of the IMF and the World Bank. The IMF's mandate is to stand guard over countries' exchange rates and policies that affect global financial stability. This involves "calling out" those whose actions will impoverish their neighbors. So far, the Fund has not...