World Bank President David Malpass said on Wednesday that he will step down nearly a year before the end of his tenure, according to CNN, a US-based international news channel.
After more than four years in the position, Malpass will step down on June 30, the conclusion of the World Bank’s fiscal year.
The 187-nation World Bank provides loans to developing nations in an effort to fight poverty. Malpass was selected to lead the World Bank in 2019 by former US President Donald Trump for a five-year term. The United States traditionally appoints the World Bank’s president as it is the organization’s largest stakeholder. Malpass previously served as Under Secretary of the Treasury for international affairs.
During Malpass’ tenure, the organization responded to various emergencies, including a global pendemic, Russia’s war in Ukraine, and an international economic slowdown. According to the World Bank, Malpass responded to both by implementing historic financial increases. Additionally, he concentrated on measures that would spur economic expansion, lighten the burden of public debt, and lessen poverty.
The 66-year-old told the bank’s board of directors of his decision and was cited as stating, “After some consideration, I’ve chosen to seek new challenges.”
“This is an opportunity for a smooth leadership transition as the Bank Group works to meet increasing global challenges,” Malpass added.
However, CNN stated that his term had been contentious.
Malpass’ resignation comes months after calls for him to resign mounted as a result of his refusal to accept the scientific consensus that fossil fuels were responsible for global warming.
Climate activists criticized Malpass in September after he declined to say if he agreed with the scientific consensus that burning fossil fuels was dangerously warming the globe at a climate panel.
Malpass was commended for his service by Treasury Secretary Janet Yellen, who said, “While we all must continue to raise our collective ambitions in the fight against climate change, during President Malpass’ tenure the World Bank has made important recent advances in this area.”
“The world has benefitted from his strong support for Ukraine in the face of Russia’s illegal and unprovoked invasion, his vital work to assist the Afghan people, and his commitment to helping low-income countries achieve debt sustainability through debt reduction,” she added.
The resignation enables the Biden administration to appoint a new World Bank president.
The president of the World Bank, which is a five-year post, is selected by the US while the European Union selects the head of the International Monetary Fund.
