World Bank president David Malpass will step down at the end of June, nearly a year before the end of his term, following continued criticism of its response to climate change under his leadership.
The bank issued a statement on Wednesday saying that Malpass, who was appointed by former US president Donald Trump, informed the board of his decision to step down after four years “to keep the bags challenge”.
“It is a great honor and privilege to serve as president of the world’s leading development institution alongside so many talented and extraordinary people,” Malpass said in a statement.
In an internal staff email seen by the Financial Times, Malpass said that while his intention to resign in June would coincide with the end of the bank’s financial year, “the next few months” will “provide a great opportunity for a smooth leadership transition”.
The US and other major shareholders of the World Bank pressured the institution last year to step up its efforts to deal with global challenges, including climate change, alongside its traditional mandate of dealing with world poverty.
That pressure intensified after Malpass refused to say whether he believed in human-caused climate change at a conference in September, despite repeated questions. He later said that he had misunderstood.
Last week, US Treasury Secretary Janet Yellen urged the bank’s leadership to “quickly” put in place reforms to provide more money to address climate change.
Speaking in Washington on Thursday, less than two weeks after a trip to three African countries, Yellen focused on her concerns about the World Bank. It should “expand its vision to include responding to global challenges” and help lower costs for countries that need funds to do so, as well as participating in “stronger ” mobilizing private finance, he said.
The US is the largest shareholder of the World Bank, and traditionally appoints its president.
The reform of multilateral development banks, including the World Bank, has risen on the global policy agenda as rich countries are faced with increasingly pressing questions about who pays for the catastrophic effects of hurricanes, floods and fires.
Smaller and less wealthy countries are pushing to build a coalition at the UN to get funds that will help them deal with the consequences of global warming without increasing their debt burdens. at the lame level.
The US has led calls from developed countries for reform of the World Bank and other financial institutions. Last year, Yellen asked the bank to create an “evolutionary road map” to show how it would incorporate climate and pandemic preparedness into its operating models.
On Wednesday, Yellen thanked Malpass for his service at the World Bank, and said the US would nominate a candidate after a “transparent, merit-based and speedy nomination process”.
Yellen said the new candidate “will continue” the work “to reform the multilateral development banks to better meet the challenges of the 21st century”.
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