Denthusiastic painting pass World Bank presidency began and ended with controversy. When Donald Trump picked the former investment bank economist and Treasury official in 2019, Mr Malpass was seen as someone who doesn’t believe in multilateralism and could sabotage the bank. When he announced his intention to step down in June on February 15, he was dogged by comments that seemed to question climate change – a key focus for the lender. However, between those dark clouds, Mr. Malpass was a surprisingly effective leader. He helped stabilize a failing institution and oversaw a major expansion of its lending operations.
Mr Malpass’s exit will come almost a year before his term expires, pointing to differences between him and the bank’s top shareholders, particularly his own country. Earlier this month, US Treasury Secretary Janet Yellen said the bank needed to act faster to reform how it operates, such as changing the way it analyzes global challenges like climate change and stretching its balance sheet to pay out more money. Ms Yellen’s comments had the makings of an ambitious new agenda for the bank – all the more reason for a new President endowed with a five-year term and strong support from member countries, rather than a lame duck in his final year. Mr. Malpass described his early departure as an “opportunity for a smooth leadership transition.”
Critics celebrated his departure. “This must be the first step towards real reform that puts the climate crisis at the heart of the bank’s work,” said Al Gore, America’s former vice president. Mr Malpass was met with contempt last year when he dodged questions about whether burning fossil fuels causes global warming, saying he was “not a scientist”. His response had revived earlier concerns that the staffer appointed by Mr Trump could not be trusted.
But his record was better than pessimists feared. His predecessor, Jim Yong Kim, had set out to reinvent the bank, bringing in consultants, cutting costs and centralizing its structure. Mr. Malpass inherited an institution that was demoralized and in disarray. Calls for new reforms that would include taking on more responsibility reflect the fact that he has helped steer the bank back to its pre-Kim identity.
In 2022, World Bank commitments — a broad measure of the funding it provides — reached $115 billion, nearly double the 2019 level when Mr. Malpass took over. This expansion reflects the bank’s role in helping poor countries emerge from the Covid-induced recession and energy-plus-food crisis following the Russian invasion of Ukraine. Notably, the bank also doubled its climate financing, reaching nearly $32 billion last year. Despite this tangible progress, Mr. Malpass tried not to appear as if his heart was really in it. “I see it more as a missed opportunity than a time when there was major turmoil or the institution couldn’t deliver,” says Masood Ahmed, president of the Center for Global Development, a Washington think tank.
America elects the President of the World Bank as part of a deal with European governments that elect the World Bank head IMF. Possible candidates include Samantha Power, director of the United States Agency for International Development (you said) and Raj Shah, a former head of you said. Following Mr. Malpass would do well to heed the lesson that careless words can undermine a good job. ■
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