On Friday, President Donald Trump’s nominee to the World Bank Group, David Malpass, was unanimously approved by its executive board to serve a five-year term as president.
Malpass is a senior U.S. Treasury official and is seen as a loyalist to the president because he served as senior economic advisor during Trump’s 2016 campaign. He was nominated by Trump in February, according to TIME. No other countries nominated a candidate.
The president of the World Bank is traditionally chosen by the U.S., which holds the most significant voting power at 16.7%, followed by Japan at 7.2% and China at 4.6%.
Malpass has been regarded by some as a controversial pick because in the past he has frequently criticized the World Bank and its sister organization, the International Monetary Fund, calling them “intrusive” and “entrenched,” the BBC reported.
In a 2011 speech, Malpass said that for 25 years he had been an opponent to the IMF and the World Bank.
“For 25 years, literally, I’ve been an opponent of the IMF and the World Bank and of the global — the system of trying to globalize US foreign policy and defer to foreign authorities in setting our policy,” Malpass said, according to CNN. “So I’ve been outspoken. I’ve done dozens of articles in the Wall Street Journal on how the IMF could be revised in order to make it less damaging.”
“I was the senior Treasury person in charge of the World Bank and all of those agencies when I was in the Reagan administration and they destroyed — we, we the United States, through our foreign aid programs, have destroyed countless countries,” Malpass added.
One of The Wall Street Journal articles that Malpass may have been referring to is one he penned in 2001 where he wrote the World Bank “systematically impoverishes foreigners.”
“[T]he IMF keeps using its money, much of it from the U.S. taxpayer, to support economic policies that would never be tolerated in the U.S,” Malpass added. “The Clinton administration championed this double standard, and the Bush administration has gone along.”
One of Malpass’ biggest criticisms of the World Bank was its lending to China, which he believes should borrow on global capital markets. Malpass said he hopes to focus on helping poorer countries as opposed to China, which he believes is too wealthy to need the aid.
Despite his criticism, Malpass helped secure the organization a $13 billion funding increase for the bank last year, reported Fox Business.
In response to criticism, Sean Rushton, a spokesman for the Treasury Department, said Malpass would “enhance the Bank’s effectiveness and efficiency,” in a statement to CNN.
“Throughout his 40-year career, Under Secretary Malpass has worked to improve and reform the multilateral development banks. When policies at the MDBs (multilateral development banks) have failed to relieve poverty and direct resources where they were needed most, he has spoken out,” Rushton wrote. “In 2018, Malpass successfully advocated for a World Bank capital increase, including a major reform package negotiated with World Bank Management and shareholders around the world. There is no one better positioned now to oversee implementation of these reforms, which will enhance the Bank’s effectiveness and efficiency. He looks forward to listening to World Bank staff on how to best focus its practices and achieve its mission. ”
On the U.S. Department of Treasury’s website, Malpass’ bio says that in 2018 he “successfully advocated for the World Bank’s capital increase as part of a larger reform agenda featuring improved monitoring and evaluation of World Bank lending, more efficient use of capital, and a focus on improving living standards in poor countries.”
After being selected on Friday, Malpass told World Bank employees that “Our twin goals of eliminating extreme poverty and achieving shared prosperity are more relevant than ever,” reported Fox Business.
“The Bank Group is strong financially and well equipped with the tools and talent to achieve measurable successes,” Malpass added.
The previous president of the bank was Jim Yong Kim who was appointed by the Obama administration but reportedly stepped down in February — three years early — to join a private equity infrastructure fund.
While a member of the Trump administration, Malpass has reportedly represented the United States in several international economic settings including at IMF and World Bank Meetings, and the Group of 20 summits.
During the George H. W. Bush administration Malpass, 63, served as Deputy Assistant Secretary of the Treasury for Developing Nations and under the Ronald Reagan administration he served as Deputy Assistant Secretary of State for Latin American Economic Affairs.
Trump congratulated Malpass on the appointment on Friday.
“Congratulations David, a very big deal!” Trump tweeted.
Malpass’s term will begin on April 9.