Whoever succeeds David Malpass will do well to heed the lesson that carelessly chosen words can undermine good work
Mr Malpass’s exit will come nearly a year before his term is due to expire, hinting at differences between him and the bank’s leading shareholders, including, notably, his own country. Earlier this month Janet Yellen, America’s treasury secretary, said the bank needed to move more quickly to reform its operations: for example, changing the way it analyses global challenges such as climate change and stretching its balance-sheet in order to disburse more money.
Critics celebrated his exit. “This must be the first step toward true reform that places the climate crisis at the centre of the bank’s work,” said Al Gore, America’s former vice-president. Mr Malpass met with scorn last year when he dodged questions about whether the burning of fossil fuels causes global warming, saying he was “not a scientist”. His response had revived earlier concerns that Mr Trump’s appointee could not be trusted.
But his record was better than pessimists feared would be the case. His predecessor, Jim Yong Kim, had been bent on reinventing the bank, bringing in consultants, slashing costs and centralising its structure. Mr Malpass inherited an institution that was demoralised and in disarray. The calls for new reforms, which would involve taking on more responsibilities, reflect the fact that he has helped steer the bank back towards its pre-Kim identity.
In 2022 the World Bank’s commitments—a broad measure of the financing it provides—reached $115bn, nearly double the amount in 2019 when Mr Malpass took over. This expansion reflects the bank’s role in helping poor countries overcome the covid-induced recession and the energy-plus-food crisis following Russia’s invasion of Ukraine. Strikingly, the bank also doubled its climate finance, reaching nearly $32bn last year.
America picks the World Bank’s president as part of an understanding with European governments, which choose the head of the. Possible candidates are believed to include Samantha Power, who runs the American agency for international development , and Raj Shah, a former head of. Whoever succeeds Mr Malpass will do well to heed the lesson that carelessly chosen words can undermine good work.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
World Bank president David Malpass to step down in June\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t
Read more »
David Malpass: World Bank leader who was called climate denier quitsThe White House has called for reforms to make the World Bank more responsive to climate issues.
Read more »
Influential local US banks fight back against Republicans’ ESG attacks\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT.
Read more »