Bank / Credit Union

The World Bank president steps down, paving way for Biden overhaul

Image via Adobe Stock

February 21, 2023

David Malpass, president of The World Bank, will step down from his position, which paves the way for President Joe Biden to select someone focused on climate change initiatives. Malpass was appointed by Donald Trump and publicly spoke negatively about climate change science, according to a report by Politico.

However, there are several potential pitfalls as other world governments might resist a Biden appointment. In addition, Biden would need a major increase in investment from the bank's 189 member countries to invest in climate change strategies.

"The world wants to move quickly, but we have to move in a way that builds consensus and recognizes that not all 189 members see the tradeoffs and the balance between global challenges and country-focused development in the same way," Masood Ahmed, president of the Center for Global Development, a think tank, told Politico. "That's what the job is going to be for the next president, how do you build a way forward?"

Malpass has denied suggestions he was forced out, and said the World Bank provided $32 billion in climate finance in 2022. He also released a 20-page roadmap for how the bank could evolve.

"The process has been managed in a way where [Malpass] was able to save face enough to be able to exit gracefully," Jonathan Walters, a former senior World Bank official, told the news outlet. "If he had been a climate leader he would have invigorated the institution behind climate. But he wasn't, so he didn't."

However, some have raised concerns the climate change roadmap could sideline other efforts to reduce poverty, and that these efforts will negatively impact poorer countries.