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First on CNBC: CNBC Transcript: World Bank President Jim Yong Kim Speaks with CNBC's Sara Eisen on "Squawk on the Street" Today

WHEN: Today, Thursday, April 14th

WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a FIRST ON CNBC interview with World Bank President Jim Yong Kim on CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET) today, Thursday, April 14th. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000509629

All references must be sourced to CNBC.

CARL QUINTANILLA: LET'S GET BACK TO SARA EISEN, WHO'S LIVE IN WASHINGTON AT THE IMF WORLD BANK SPRING MEETING. SARA?

SARA EISEN: HI, CARL. I AM HERE WITH ONE OF THE HOSTS OF TODAY'S MEETINGS, PRESIDENT JIM YONG KIM OF THE WORLD BANK. GOOD TO SEE YOU AGAIN.

JIM YONG KIM: SARA, THANKS FOR HAVING ME ON.

EISEN: EVERYONE WAS SO SURPRISED WHEN PRESIDENT OBAMA NOMINATED YOU FOUR YEARS AGO, A DOCTOR WHO SPENT MUCH OF HIS LIFE IN PUBLIC HEALTH CARE POLICY. WELL, NOW THAT'S COMING IN HANDY.

KIM: YEAH. YOU KNOW, WE'RE IN THE MIDDLE OF TRYING TO BUILD FINALLY A PANDEMIC RESPONSE SYSTEM. YOU KNOW, THE INSURANCE COMPANIES WILL SAY --

EISEN: YOU'RE TALKING ABOUT ZIKA.

KIM: YEAH, INSURANCE COMPANIES WILL SAY THAT PANDEMICS ARE A HUGE DOWNSIDE RISK TO THE GLOBAL ECONOMY AND WE'VE BEEN TRYING TO DO IT. AND THEN NOW ZIKA HAS ILLUSTRATED ONCE AGAIN WHY THIS IS SUCH A CONCERN. ZIKA'S IMPORTANT BECAUSE IT'S ONE OF THE THINGS THAT WE FEAR THE MOST, AN OLD BUG, AN OLD VIRUS THAT BEHAVES IN NEW WAYS. THAT'S ONE OF THE BIG CONCERNS. THE OTHER IS SOMETHING LIKE THE SPANISH FLU PANDEMIC THAT KILLED 25-PLUS MILLION PEOPLE. WE COULD VERY MUCH HAVE SOMETHING LIKE THAT TODAY AND STILL AS A WORLD WE'RE NOT PREPARED FOR IT. AND TALK ABOUT DOWNSIDE RISK --

EISEN: BUT WE'RE NOT TALKING ABOUT ANY DEATHS FROM ZIKA, YET.

KIM: NO, WE'RE NOT TALKING ABOUT ZIKA BUT, I MEAN, THIS IS VERY IMPORTANT. I THINK WHAT TOM FRIEDEN AT CDC DID WAS REALLY IMPORTANT --

EISEN: LAST NIGHT. A TURNING POINT?

KIM: IT WAS REALLY IMPORTANT, REALLY GOOD. IT WAS NOT EASY TO MAKE THAT ASSOCIATION. THEY HAD TO REALLY THINK AND BE CREATIVE TO MAKE THE ASSOCIATION BUT NOW THE ASSOCIATION'S VERY CLEAR WITH CHILDREN. AND AT W.H.O., THEY'VE ALSO MADE THE ASSOCIATION VERY CLEAR WITH ADULTS. SO, THIS IS A MAJOR ISSUE. IT'S NOT LIKE THE FLU PANDEMICS THAT KILL TENS OF MILLIONS OF PEOPLE, BUT IT IS AGAIN AN ILLUSTRATION THAT THERE ARE MANY DOWNSIDE RISKS TO THE GLOBAL ECONOMY THAT WE HAVE NOT REALLY BUFFERED. THE PANDEMICS IS ONE, CLIMATE CHANGE IS ANOTHER, THE REFUGEE CRISIS, FORCED DISPLACEMENT IS A THIRD. AND ALL OF THESE THINGS NOW, WE ARE REALLY STEPPING UP TO TRY TO SEE IF WE CAN PUT IN PLACE MECHANISMS THAT WILL BUFFER POTENTIALLY THE EFFECTS OF THESE KINDS OF CRISES.

EISEN: YOU MENTIONED WE WERE UNPREPARED ON ZIKA. THERE'S CURRENTLY A DEBATE OVER WHETHER CONGRESS SHOULD RELEASE $1.9 BILLION THAT PRESIDENT OBAMA HAS ASKED FOR FOR RESEARCH IN FIGHTING IT. IS THAT NECESSARY?

KIM: WELL, YOU KNOW, OUR VIEW IS THAT IF YOU LOOK AT THE POTENTIAL IMPACTS OF PANDEMICS, OF THINGS LIKE ZIKA, YOU KNOW, THE EARLIER YOU SPEND, THE BETTER. THE LATER YOU SPEND, THE MORE EXPENSIVE IT'S GOING TO BE. AND SO, WE THINK THAT PREPAREDNESS FOR ZIKA IN EVERY COUNTRY IN THE WORLD IS REALLY IMPORTANT. AND OF COURSE, YOU KNOW, AGAIN, EVERY MINUTE THAT YOU WAIT, THE COST GOES UP.

EISEN: AND YOUR ESTIMATION OF WHAT WE'RE LOOKING AT IN TERMS OF THE UNITED STATES AS WE GET INTO THE WARMER WEATHER, WHAT ARE WE TALKING ABOUT, SOMETHING OF CRISIS PROPORTIONS?

KIM: WELL, WE'VE HEARD 30 STATES, RIGHT? AND SO, IF IT'S 30 STATES AND WE KNOW THAT, FOR EXAMPLE, IN PREGNANT WOMEN, WE DON'T KNOW THE NUMBERS YET. WE DON'T KNOW WHAT PERCENTAGE OF PREGNANT WOMEN, FOR EXAMPLE, INFECTED WITH ZIKA WILL HAVE THESE EFFECTS. BUT THE THING IS, THE ONLY THINGS THAT WE'RE RECOGNIZING NOW ARE THINGS LIKE MICROCEPHALY, WHICH ARE VERY DRAMATIC EFFECTS. THE OTHER QUESTION IS, COULD THERE BE MORE SUBTLE EFFECTS THAT DON'T LOOK LIKE MICROCEPHALY BUT SHOW UP OVER TIME AS OTHER PROBLEMS WITH CHILDREN'S BRAINS?

EISEN: QUESTION ON BRAZIL, WHERE THEY'RE FEELING THIS CRISIS ACUTELY, NOT TO MENTION WHAT IS GOING ON WITH THE POLITICAL UPHEAVAL AND THE ECONOMIC PAIN AHEAD OF THE OLYMPICS THIS SUMMER. SUCH AN IMPORTANT MARKET FOR CORPORATE AMERICA. HOW DEEP IS THIS RECESSION? HOW MANY YEARS IS IT GOING TO LAST?

KIM: YOU KNOW, A LOT OF THE FUNDAMENTALS HAVE BEEN PUT IN PLACE. I MEAN, OUR CURRENT MANAGING DIRECTOR, CHIEF FINANCIAL OFFICER, WAS MINISTER OF FINANCE IN BRAZIL JUST BEFORE COMING, AND HE DID A LOT OF VERY GOOD WORK. THAT GOVERNMENT DID A LOT OF GOOD WORK IN GETTING SOME OF THE MACRO FUNDAMENTALS IN PLACE. RIGHT NOW, THOUGH, IT'S A POLITICAL CRISIS, AND WE DON'T SEE -- WE SEE NEGATIVE GROWTH AGAIN FOR BRAZIL THIS YEAR. WE THINK THAT IF THE POLITICAL CRISIS PASSES, THAT BRAZILIAN RECOVERY COULD BE PRETTY ROBUST, BUT THE POLITICAL CRISIS HAS TO PASS FIRST.

EISEN: I DID ALSO WANT TO ASK YOU ABOUT CHINA, YOU HAVE A GREAT HANDLE ON THE EMERGING MARKETS. THE GUYS WERE JUST TALKING ABOUT THE RELATIVE CALM THAT WE HAVE SEEN IN CHINA WITH GDP NUMBERS COMING OUT TONIGHT. THE QUESTION IS, IS THIS TEMPORARY? THEY CERTAINLY SEEM TO HAVE A HANDLE ON THEIR CURRENCY AND ON THEIR ECONOMY. OR IS THE WORST BEHIND US?

KIM: WE'VE BEEN WORKING WITH CHINA REALLY FOR ABOUT TEN YEARS IN DOING JUST WHAT THEY'RE DOING NOW. THEY'RE TRANSITIONING TO A DIFFERENT GROWTH MODEL. SO, WE SEE SOME SIGNS THAT ARE REALLY POSITIVE. SERVICE INDUSTRY IS NOW MORE THAN 50% OF THE ECONOMY. WE SEE CLEAR GROWTH IN CONSUMPTION. THERE ARE STILL SOME ISSUES THAT THEY HAVE TO DEAL WITH. THEY'RE STILL OVERCAPACITY, BUT THEY'RE VERY AWARE OF THAT. THERE IS STILL A HIGH LEVEL OF INDEBTEDNESS IN THE PRIVATE SECTOR, BUT AGAIN, THEY'RE VERY MUCH AWARE OF THAT. SO WHAT WE'RE SEEING IN CHINA IS A VERY DELIBERATE MOVE TOWARD MORE SUSTAINABLE, HIGHER QUALITY, BUT A LOWER GROWTH RATE, BUT WE STILL HAVE TO REMEMBER THAT CHINA HAS BEEN RESPONSIBLE FOR 30% TO 40% OF GLOBAL GROWTH OVER THE LAST FEW YEARS. THIS IS VERY IMPORTANT, AND I THINK THE CHINESE NOW UNDERSTAND FULLY THE WEIGHT THAT THEY HAVE IN THE GLOBAL ECONOMY. AND I JUST MET YESTERDAY WITH THE CENTRAL BANK GOVERNOR ZHOU XIAOCHUAN. HE IS COMMUNICATING SO MUCH MORE CLEARLY THAN HE DID EVEN NINE MONTHS AGO, AND HE KNOWS THAT IT'S IMPORTANT --

EISEN: WHAT'S HE DOING WITH THE CURRENCY? IS IT DONE DEVALUING?

KIM: SO, WHAT THEY'RE DOING IS SOMETHING THAT'S REALLY, AGAIN, UNPRECEDENTED. THIS IS A HUGE ECONOMY. THEY'RE JOINING THE SDR, AND THEY'RE NOW NOT JUST PEGGING IT TO THE DOLLAR, BUT THEY'RE PEGGING IT TO A NUMBER OF DIFFERENT CURRENCIES. THEY'RE BEGINNING TO COMMUNICATE ABOUT WHAT THOSE CURRENCIES ARE. AND THEY NOW KNOW VERY CLEARLY THAT COMMUNICATING WHAT THEY'RE DOING IS A CRITICAL PART OF THEIR WORK, AND HE IS VERY COMMITTED TO IT.

EISEN: WELL, CERTAINLY, INVESTORS HAVE BEEN A LOT CALMER ABOUT THE CHINA SITUATION. ALWAYS GOOD TO SEE YOU. THANK YOU FOR YOUR THOUGHTS. THAT IS PRESIDENT JIM YONG KIM, THE PRESIDENT OF THE WORLD BANK, TALKING CHINA, TALKING EMERGING MARKETS, AND OF COURSE, VERY FOCUSED HERE ON ZIKA. JUST A FLAVOR OF SOME OF THE CONVERSATIONS IN THE IMF BUILDING HERE AT THE WORLD BANK IMF SPRING MEETINGS, CARL.

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