Trump expected to tap critic of the World Bank to lead it

Trump expected to tap critic of the World Bank to lead it

Trump expected to tap critic of the World Bank to lead it

President Donald Trump is expected to tap David Malpass to lead the World Bank, despite the Treasury official's documented conservative critiques of the institution.

Justin Sandefur, a senior fellow with the Center for Global Development, said the choice showed that the Trump administration was trying to undermine a key global institution and urged other countries to nominate alternative candidates.

One World Bank board source said that there was little appetite among member countries to mount a challenge to a USA candidate seen as qualified and reasonable, but it was unclear yet whether enough viewed Malpass as fitting that description.

China is the World Bank's third largest shareholder after Japan, with about a 4.5 percent share of voting power. Malpass is a former adviser to Presidents Reagan and Bush Sr. and served as chief economist at Bear Stearns.

Malpass' public forecasting has at times been misguided and arguably shaped by his political leanings. In 2007, he wrote a Wall Street Journal op-ed titled "Don't Panic About the Credit Market"-less than a year before the collapse and subsequent sale of Bear Stearns amid the 2008 financial crisis".

White House Press Secretary Sarah Sanders declined to confirm that Malpass is the president's pick to lead the world's largest development lender.

Kim did not provide any reason for his resignation, but his exit provides a new opportunity for the Trump administration change the direction of the World Bank. "Highly respected and a strong member of the team".

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Malpass would succeed Jim Yong Kim, who announced in January that he is stepping down three years before his term was set to expire.

The Trump administration's decision to nominate Malpass was first reported by Politico.

The US has historically been allowed to choose the head of the World Bank, although that dynamic has more recently faced resistance from other parts of the world.

Trump has railed against multilateral institutions and questioned United States foreign aid commitments, and his choice for the World Bank could precipitate a clash with other nations over the US' continued dominance of the global development bank.

Malpass, or any other US nominee, would still need to win approval from the World Bank's 12-member executive board.

Kim's unexpected departure is likely to become a contentious fight between the Trump administration and other countries who believe the United States exerts too much influence over the bank, which is based in Washington.

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