Logo of Phnom Penh Post newspaper Phnom Penh Post - US Treasury official and Trump backer Malpass named World Bank president

US Treasury official and Trump backer Malpass named World Bank president

Content image - Phnom Penh Post
US Treasury official and Trump backer Malpass was unanimously chosen on Friday as the next president of the World Bank. AFP

US Treasury official and Trump backer Malpass named World Bank president

Treasury official and staunch supporter of US President Donald Trump, was unanimously chosen on Friday as the next president of the World Bank.

The 63-year-old has been a strident critic of global financial institutions, calling their lending practices “corrupt” and ineffective, and complaining they are overly generous to China.

Malpass – who has softened his message since being tapped to lead the World Bank – begins his five-year term on Tuesday, replacing former President Jim Yong Kim, whose surprise departure came not even halfway through his second term.

The announcement came as expected just prior to next week’s joint spring meetings of the World Bank and the IMF.

The bank said in a statement that Malpass’ selection by the board of directors followed an “open, transparent” nomination process in which citizens of all membership countries were potentially eligible.

But since the bank’s creation following World War II, all of its presidents have been US men, following an unwritten rule that also ensures European leadership at the top of its sister institution, the International Monetary Fund.

The US Treasury official in charge of international affairs, Malpass had been the lone candidate for the World Bank job and his nomination by Trump earlier this year sparked outrage among critics, who saw it as an affront to the global anti-poverty lender’s very mission.

Malpass now emphasises he is committed to the bank’s mission of eliminating extreme poverty, however, and that reforms enacted last year as part of a $13 billion capital increase addressed many of his criticisms.

In an open letter to bank staff on Friday, Malpass said the bank’s mission was “more urgent than ever”, adding that he had “listened carefully” in recent meetings with staff, board members and other stake holders.

In recent years, emerging market countries have challenged the unwritten arrangement on World Bank and IMF leadership, demanding a more open, merit-based selection process.

The bank has been at pains to stress that it has heard such criticisms and now allows a more open process. But the few non-US candidates in recent years have received little support from major bank shareholders. Many, including former Treasury officials from both political parties, have sharply criticised Malpass and his qualifications.

They pointed to his failure to foresee the 2008 global financial crisis during his time at the now-defunct investment bank Bear Stearns and his opposition, which later proved unjustified, to post-crisis Federal Reserve policies.

Malpass previously also held a senior role in the US State Department for Latin American affairs.

In a statement, US Secretary of the Treasury Steven Mnuchin and Ivanka Trump, the president’s daughter and adviser who has spearheaded a bank campaign for women entrepreneurs, both congratulated Malpass, citing what they called a commitment to poverty reduction in his career.

Mnuchin called Malpass “an ideal fit” to lead the bank while Trump said she believed he would be “an extraordinary leader”.

MOST VIEWED

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • PM urges end to ‘baseless’ international Ream base accusations

    Prime Minister Hun Sen urges an end to “baseless” foreign accusations surrounding the development of the Kingdom’s Ream Naval Base, as the US has consistently suggested that the base is being expanded to accommodate a Chinese military presence. Hun Sen renewed his calls while

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.