Trump to Nominate the Next World Bank Leader
President Trump is expected to nominate David Malpass as the next President of the World Bank. Malpass, currently the undersecretary for international affairs at the Treasury, has long been an outspoken critic of the bank. He has argued that the bank has become too focused on its expansion rather than fulfilling its role in helping developing countries combat poverty. He has questioned multilateral institutions, saying that such international groups’ missions have become “larger and more intrusive” and needs to get refocused. Last year, Malpass led the negotiations on a capital increase and reform package for the World Bank.
The vacancy was announced last month when the previous President Jim Yong Kim announced that he would be resigning as the World Bank’s head effective Feb. 1, three years before his term expires. Although the bank’s board must ratify the nomination, the United States is its largest shareholder and has been allowed to choose the World Bank’s President since its inception. Recently, however, other nations have pushed back, saying that the US has too much influence over the bank, and nominating such an open critic of the bank could increase the countries’ resistance.
Malpass previously served as Chief Economist at Bear Stearns from 1993 to the investment bank’s collapse in 2008, as well as the Deputy Assistant Secretary of state under George Bush and Deputy Assistant Secretary of the Treasury under Reagan. From his current position as a Treasury administrator, Malpass has pressed the World Bank to commit to change. He has pushed to overhaul the bank’s established practices, citing its continued loans to China as an example of its outdated approach to financing developing countries.
Others who were considered for the position included Indra K. Nooyi, the former CEO of PepsiCo, Ray Washburne, President of the Overseas Private Investment Corporation, and Heidi Cruz, a Goldman Sachs Executive and Republican Senator Ted Cruz’s wife. The process of choosing former World Bank President Kim’s successor was overseen by Treasury secretary Steven Mnuchin, acting White House Chief of Staff, Mick Mulvaney, and Ivanka Trump, with President Trump meeting with finalists himself to determine a nomination.