Malpass was appointed by former US president Donald Trump in the year 2019 and plans to leave by June 30, the end of the World Bank’s fiscal year
David Malpass, the World Bank President on Wednesday announced his surprise exit a year before his tenure is set to end. Malpass was appointed by former US president Donald Trump in the year 2019 and plans to leave by June 30, the end of the World Bank’s fiscal year. His five-year tenure was due to end in the month of April 2024. Malpass became the World Bank chief after acting as the top official for international affairs at the US treasury during the Trump governance.
According to reports, David Malpass informed about his decision to US Treasury Secretary Janet Yellen on Tuesday. Malpass during his tenure has faced many global crises including the pandemic and the Russia-Ukraine war. The official statement released by Mr. Malpass mentioned the successive financial surges during the times of global crises. The institution has received $150 billion in response to the Covid-19 pandemic and received an overlapping $170 billion in response to the Russia-Ukraine war. He also gave importance to policies and measures to address the ongoing global food crisis and assisted in pandemic prevention and response.
The current opening also provides a chance for President Joe Biden to elect an official who can help fight climate change while lowering energy costs for families and implementing the government’s green energy vision.
David Malpass stated that acting as the president of the World Bank Group has been an honor and privilege. “I am deeply grateful for the support of the Executive Directors, Officers, and staff across all five World Bank Group institutions,” stated David Malpass adding that the World Bank had reacted with speed, innovation, scale, and impact to the countries that faced unexpected hardships. However, Malpass had pressure to resign many times during his tenure and was not expected to be presented with a second term. He did not provide any specific reason for this surprise decision and mentioned that he is ready to pursue other challenges in a statement.
The World Bank is an international organization with 187 member states dedicated to providing financial assistance, advice, and research to developing nations to help reduce poverty by providing developmental assistance. The United States is the largest shareholder of the World Bank and traditionally appoints its chief. The US treasury chief stated that they would soon nominate a replacement for David Malpass and expects the board to commission a swift and transparent nomination process for the next world bank president.
A Call for Resignation
Malpass did have a great impact during his 4-year tenure, but it was not a smooth sail for him. Controversies now and then surrounded him and the latest one shook up his leadership and position. The Special Advisor to the UN Secretary-General called out the World Bank for not taking enough action on climate change.
In September he faced disapproval from climate activists after a refusal to confirm that burning fossil fuels were warming the planet alarmingly. Many opponents after this called for his resignation. He acknowledged later that fossil fuels are contributing to global warming and on Wednesday, the institution noticed that it had increased its climate financing to $32 billion in 2022.
Janet Yellen, the Treasury Secretary stated that Malpass stated that the world had profited from his support for Ukraine and his commitment to helping low-income countries achieve debt sustainability through debt reduction. “And while we all must continue to raise our collective ambitions in the fight against climate change, during President Malpass’ tenure the World Bank has made important recent advances in this area,” she said.