David Malpass, donald Trump’s pick for World Bank President, will be unveiled this week after being approved for the role.
Malpass, a Trump loyalist, was a senior economic adviser to the US president during his 2016 election campaign.
His appointment has stirred debate, as some worry that Malpass, a critic of the bank, will seek to reduce its role. In February, White House officials said Malpass, a long-time Republican, would be a “pro-growth reformer”.
Malpass said he was “honoured” by the appointment, saying, “our twin goals of eliminating extreme poverty and achieving shared prosperity are more relevant than ever,” he said.
The former Bear Sterns economist has criticised the World Bank in the past, along with other multilateral institutions such as the International Monetary Fund (IMF), for being “intrusive” and “entrenched”. ‘Not willing to fight’
To become World Bank president, Malpass won unanimous approval from the institution’s executive board, which has 25 members.
The US holds a 16 per cent share of board voting power and has traditionally chosen the World Bank’s leader.
China is the World Bank’s third-largest shareholder after Japan, with about a 4.5 per cent share of voting power.
Speaking on Malpass’ appointment, Prof. Christopher Kilby, an expert on the economics of foreign aid at Villanova University near Philadelphia, said it is likely that China and other shareholders did not push back on Malpass’ appointment as they “recognise that they are unlikely to succeed in derail- ing the US nominee.
“Since they have seen President Trump punish those who stand up to him, they are not willing to fight the US,” Kilby said.
In the past, China has also not sought more power within the World Bank as some of its aims, including promoting the rights of indigenous peoples, do not align with Chinese domestic and foreign policy, Kilby said.
BBC New York business correspondent, Michelle Fleury, said Malpass would need to establish his credibility quickly as the new president of the World Bank.
The legitimacy of the selection process came under renewed scrutiny after Donald Trump’s pick emerged as the only candidate to succeed Jim Kim.
And he’s been an outspoken critic of the institution he’s about to lead.
In the past, he’s described the World Bank as too big. He’s said he’d like to lend less to middle income countries like China, which he argues are financially strong enough. And he has challenged the global order.
Speaking at an event at the Council on Foreign Relations back in 2017 he said: “Multilateralism has gone substantially too far – to the point where it is hurting US and global growth.”