David Malpass, a senior official at the US Department of the Treasury, on Friday was unanimously chosen as the next president of the World Bank.
The 63-year-old has been a strident critic of global financial institutions, calling their lending practices “corrupt” and ineffective, and complaining that they are overly generous to China.
Malpass is to begin his five-year term on Tuesday, replacing former World Bank president Jim Yong-kim, whose surprise departure came not even halfway through his second term.
Photo: AP
The announcement came as expected just prior to next week’s joint spring meetings of the World Bank and the IMF.
The bank said in a statement that Malpass’ selection by the board of directors followed an “open, transparent” nomination process in which citizens of all membership countries were potentially eligible.
Since the bank’s creation following World War II, all of its presidents have been US men, following an unwritten rule that also ensures European leadership at the top of the IMF.
The US Treasury official in charge of international affairs, Malpass had been the lone candidate for the World Bank job and his nomination by US President Donald Trump earlier this year sparked outrage among critics, who saw it as an affront to the global anti-poverty lender’s mission.
Malpass says he is committed to the bank’s mission of eliminating extreme poverty and that reforms enacted last year as part of a US$13 billion capital increase addressed many of his critics.
In an open letter to bank staff on Friday, Malpass said that its mission was “more urgent than ever,” adding that he had “listened carefully” in recent meetings with staff, board members and other stakeholders.
In recent years, emerging-market countries have challenged the unwritten arrangement on World Bank and IMF leadership, demanding a more open, merit-based selection process.
The bank has been at pains to stress that it has heard such criticisms and now allows a more open process. However, the few non-American candidates in recent years have received little support from major bank shareholders.
Many, including former Treasury officials from both political parties, have sharply criticized Malpass and his qualifications.
They pointed to his failure to foresee the 2008 global financial crisis during his time at the now-defunct investment bank Bear Stearns and his opposition to post-crisis policies by the US Federal Reserve.
Malpass previously also held a senior role in the US Department of State for Latin American affairs.
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