The US President Donald Trump on Wednesday put forward David Malpass’s name to lead World Bank as its president. Malpass, who is a senior official at the US Treasury Department, is known for his open criticism of the international financial institutions like World Bank and International Monetary Fund and has called their lending practices “corrupt”.
Trump recommended his name for the post of World bank President as he believes that Malpass is “an extraordinary man” who is “the right person to take this incredibly important job.”
Trump reasoned his choice by saying, “America is the largest contributor to the World Bank. My administration has made it a top priority to insure that US taxpayer’s dollars are spent effectively and wisely.”
Malpass while talking to reporters at White House criticised international financial institutions for lending finances to relatively well-off countries like China, as in his opinion such nations should graduate from these institutions, allowing them to use their resources to combat extreme poverty and increase economic opportunities in the developing world.
He added that if appointed for the post, he would seek to implement reforms like increasing World bank’s lending capital by $13 billion, restricting loans to and charging higher interest rate to economically sound countries.
The 62-year-old said, “It doesn’t make too much sense for the higher income countries to be drawing so many resources from the bank when there are poorer countries that could make use of these resources.”
Malpass is one of the nominees of the position for which any of the 189 member-countries can propose a candidate.
The World bank’s board would accept nominations from February 7 to March 14 and would zero in on a name (to head it) by April, a position which has traditionally been held by Americans.
If Malpass wins the majority vote of Directors, he would replace Jim Yong Kim. Malpass’s appointment as the Bank’s president is feared and criticised, by many politicians, economic advisers and media organisations like New York Times and Wall Street Journal, for his failure to envision 2008 global financial crisis.
“David Malpass would be a disastrous, toxic choice for World Bank president,” said Tony Fratto, former Treasury assistant secretary who served during the George W. Bush administration.