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Trump’s nominee becomes World Bank new President

By News desk

The United State President, Donald Trump’s pick for World Bank president, David Malpass, has officially been approved for the role on Friday.

Malpass, a Trump loyalist, was a senior economic adviser to the US president during his 2016 election campaign.

His appointment has stirred debate, as some worry that Malpass, a critic of the bank, will seek to reduce its role globally.

It would be recalled that two months ago, White House officials said Malpass, a long-time Republican, would be a “pro-growth reformer”.

Reacting over his nomination, Malpass described it as a honoured, saying, our twin goals of eliminating extreme poverty and achieving shared prosperity are more relevant than ever.

The former Bear Sterns economist has criticised the World Bank in the past, along with other multilateral institutions such as the International Monetary Fund (IMF), for being “intrusive” and “entrenched”.

To become World Bank president Mr Malpass won unanimous approval from the institution’s executive board, which has 25 members.

The US holds a 16% share of board voting power and has traditionally chosen the World Bank’s leader.

China is the World Bank’s third-largest shareholder after Japan, with about a 4.5% share of voting power.

Professor Christopher Kilby, an expert on the economics of foreign aid at Villanova University near Philadelphia, said it is likely that China and other shareholders did not push back on Mr Malpass’ appointment as they “recognise that they are unlikely to succeed in derailing the US nominee.”

“Since they have seen President Trump punish those who stand up to him, they are not willing to fight the US,” Prof Kilby said.

In the past China has also not sought more power within the World Bank as some of its aims, including promoting the rights of indigenous peoples, do not align with Chinese domestic and foreign policy, Prof Kilby said.

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