The World Bank has selected David Malpass as its 13th president. He began his five-year term on April 9, 2019. This appointment has made Malpass one of the strategic leaders nominated by President Donald Trump.
Prior to his appointment, Malpass was the Co-Chief Economist for President Trump during the 2016 presidential campaign and later appointed as a Senior Officer in the U.S. Treasury Department. Unanimously chosen by the World Bank’s executive directors on April 5, 2019, Malpass secured his position within the world biggest lender. Representing the financial institution’s 189 member countries, this role is essential to the World Bank’s continued commitment to international development, economic prosperity, and infrastructure resilience.
However, one question remains unanswered; what is specifically unique to Malpass’ appointment and how will this impact the future direction of World Bank projects?
The World Bank’s primary goal is to achieve the United Nations’ 17 Sustainable Development Goals (SDGs) and Agenda 2030 by ending poverty and promoting shared prosperity. With this objective, the World Bank has committed to financing around $200 billion worth of projects, mainly in support of countries that have climate-related initiatives. As the new incumbent, Malpass is expected to tackle climate change under his leadership through World Bank funded projects such as Connect4Climate and other multi-donor projects.
Malpass’ appointment leaves critics wondering if he will continue to bring forward climate change issues to the upcoming World Bank agenda, or rather set these issues aside and prioritize the domestic agenda of the Bank’s biggest shareholders. The answer to this would provide greater insight into how the next 5 years will unfold.
Malpass’ appointment has sparked a critical concern among the international community, especially regarding how the Bank will continue to tackle the issue of climate change. This is a legitimate concern, given that he was appointed by President Donald Trump who is a well-known opponent to climate-related regulations and a big supporter of fossil fuels and coal energy. Although Malpass already committed his leadership to supporting the issue of global environment protection during the World Bank-IMF Spring meeting, there is always the possibility that his conservative political allegiance could shift the direction of the World Bank’s future agenda.
The previous incumbent, Jim Yong Kim, had championed the World Bank Group’s Climate Action Plan that directed more than a quarter of the Bank’s funding for climate change projects. Additionally, the International Finance Corp., as the private sector of The World Bank group, is projected to increase its sustainable energy investment and climate finance sectors from 21% to 28% by 2020.
The international community should monitor this new leadership to ensure the continued support of the Bank’s core mission of ending world poverty and climate change. Having been appointed by President Donald Trump who stands opposed to environmental regulations, Malpass will likely come under fire from those who have long been in support of the organization’s work in combatting climate change. Thus, agendas relating to or working indirectly with the energy and environmental sectors will face further challenges in the future.
Although it is still questionable how Malpass will continue the legacy of his predecessors, he is expected to maintain the World Bank’s policy under the mandate of ending poverty. The World Bank’s leadership should be mindful of any political interests that prevent the creation of inclusive and equitable solutions for the community that it is serving. This responsibility then lies with member countries and the international community to carefully supervise and bring forth favorable ecosystems for investment in developing countries. Therefore, investors should also be mindful of future World Bank policies that will influence developing countries in deciding investment practices. The World Bank’s leadership should be a cognizant force, void of national political interests which could discourage solutions that are inclusive, equitable, and empowering.
