World Bank board elects David Malpass as next president
The World Bank told Reuters on Friday that its executive board unanimously approved David Malpass, the US Treasury Department’s top diplomat, as the bank’s next president, continuing the 73-year tradition of an American leading the development lender.
By : migrator
Update: 2019-04-05 16:56 GMT
Washington
Malpass, the Treasury’s undersecretary for international affairs who advised US President Donald Trump’s 2016 election campaign, was the sole candidate for the job. He will start his new role next week, during the World Bank and IMF Spring Meetings, a bank spokesman said.
Malpass, a Trump loyalist and former campaign adviser, has raised some concerns that he will use the bank to further Trump’s controversial “America First” agenda.
While Malpass, a former Bear Stearns chief economist, has been critical of the World Bank’s growth and ample lending to China, in recent weeks he has adopted a more conciliatory tone, emphasizing his past experience in emerging market finance and goals for poverty reduction.
He also has touted his role in negotiating World Bank lending reforms aimed at focusing more resources on poorer countries as part of a $13 billion capital increase last year.
Malpass also has said he was committed to pursuing the World Bank’s goals on combating climate change, which have been at odds with the Trump administration’s support for coal. The lender has largely withdrawn from financing new coal-fired power projects in favor of renewable energy projects.
Pledging to stay the course on climate change goals will likely win support for Malpass from board members, said Scott Morris, a senior fellow at the Center for Global Development and a former Treasury official.
“He’s distanced himself from some of his past positions,” Morris said. “His message has been that he’s committed to implementing the bank’s agenda put forth in the capital increase last year. That’s an ambitious agenda, not one of dialing the bank back.”
Morris added that it would be “extremely unlikely” that Malpass would be rejected by the bank’s board in the absence of other candidates.
One of Malpass’ first issues to handle at the bank would be dealing with the aftermath of a U.S. Supreme Court ruling that opens the door to lawsuits against the International Finance Corp, part of the World Bank Group, in American courts over projects it finances.
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