World Bank chief steps down: David Malpass, the head of the World Bank, has announced his resignation almost a year early. He ending a tenure at the head of the development lender that was clouded by questions over his climate stance. The American Republican who had previously worked as Under Secretary of the Treasury for foreign affairs was appointed to the position in 2019 when Donald Trump was president. Malpass’s term would have originally ended in 2024.
February 2023 Current Affairs Quiz
The US traditionally nominates the head of the World Bank, with Europe nominating the heads of its twin Bretton Woods institution, the International Monetary Fund. Names mentioned by analysts as potential Biden administration picks include Samantha Power, head of the the US Agency for International Development, and Rajiv Shah, the president of the Rockefeller Foundation and a former head of USAID.
Up’s and Down’s of Malpass as a head of World Bank
- His tenure at the World Bank saw the organization grapple with global crises such as the Covid-19 pandemic, the Russian invasion of Ukraine and an international economic slowdown.
- Under (Malpass’s) leadership, the Bank Group more than doubled its climate finance to developing countries, reaching a record $32 billion last year
- His work to assist the Afghan people and his commitment to helping low-income countries achieve debt sustainability through debt reduction.
- As head of the anti-poverty lender, he pressured Beijing to provide more debt relief for developing nations.
What is World Bank and how it works?
A major source of technical and financial assistance for developing countries worldwide is the World Bank. They are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development. The World Bank Group comprises five institutions managed by their member countries. The World Bank promotes long-term economic development and poverty reduction by providing technical and financial support to help countries implement reforms or projects, such as building schools, providing water and electricity, fighting disease, and protecting the environment.
5 branches of World Bank
- IBRD: The International Bank for Reconstruction and Development
- IDA: The International Development Association
- IFC: The International Finance Corporation
- MIGA: The Multilateral Investment Guarantee Agency
- ICSID: The International Centre for Settlement of Investment Disputes