World Bank President Malpass To Step Down. Set To Pursue New Challenges

After more than four years in the position, World Bank Group President David Malpass has informed the organization’s Board of Executive Directors of his intention to retire on June 30, the end of the Bank Group’s fiscal year.

During Malpass’s time in office, he put a strong emphasis on seeking stronger policies to boost economic growth, reduce government debt, alleviate poverty, and raise living standards.

The COVID-19 pandemic, the war in Ukraine, the sharp global economic slowdown, unsustainable debt burdens, climate change, and food, fertilizer, and energy shortages were just a few of the global crises that the five institutions that make up the Bank Group—IBRD, IDA, IFC, MIGA, and ICSID—responded to quickly over the past four years. They also mobilized a record $440 billion in response to these issues.

“It has been an enormous honor and privilege to serve as President of the world’s premier development institution alongside so many talented and exceptional people. With developing countries facing unprecedented crises, I’m proud that the Bank Group has responded with speed, scale, innovation, and impact. The last four years have been some of the most meaningful of my career. Having made much progress, and after a good deal of thought, I’ve decided to pursue new challenges. I want to thank our staff and Boards of Directors for the privilege of working with them every day to strengthen the effectiveness of our operations in the most challenging of times.” said Malpass.

Malpass frequently met with world leaders to discuss supportive policies, such as debt reduction to break the cycles of unsustainable debt, as developing countries were under severe financial pressure. The Bank Group’s climate finance for developing countries more than doubled under his direction, reaching a record $32 billion last year.

In addition to providing thought leadership for the Bank Group’s analytical products on fiscal and monetary policy, currency systems, and governance reform, Malpass led efforts to facilitate and increase private sector investment and trade. In addition, Malpass improved the organization’s management and staff. As a result, the Bank Group will depart with improved finances and fundraising efforts to support its AAA credit rating.

According to Malpass, the Bank Group is “fundamentally strong,” “financially sustainable,” and “well positioned” to increase its development impact in the face of urgent global crises.

As the Bank Group works to meet increasing global challenges, facilitate private investment, sharpen its focus on global public goods, and maintain strong momentum on operational delivery and portfolio performance for client countries, this is an opportunity for a smooth leadership transition.

The Bank Group accomplished the following during Malpass’s tenure:

In response to the COVID-19 pandemic and the Ukrainian war, record increases in funding of over $157 billion were implemented.

Completed capital increases for IBRD and IFC, record replenishments for IDA19 and IDA20, and a rapid ramp-up in the issuance of medium- and long-term bonds.

Facilitated vaccination and emergency health services in more than 100 nations.

Obtained emergency funding for Ukraine totaling $18 billion to support the continuation of vital government services.

Commenced a procedure with shareholders of the Bank Group to improve the institution’s vision and mission, operating model, and financial capacity and model in order to increase development resources.

Launched the Bank Group’s Climate Change Action Plan to better link growth and development to climate and biodiversity.
put $30 billion into projects to deal with the food, fertilizer, and fuel shortages that are affecting developing nations.

Launched the Pandemic Fund with initial pledges of $1.6 billion from 25 nations and donors to increase preparedness.

Improved nutrition, access to clean water, electricity, and funding for fragile and conflict-affected regions, as well as increased staffing and funding.

Developed the Bank Group’s relationship with China by focusing on reducing marine plastic pollution and global public goods rather than lending money.

Introduced novel financial instruments to provide results-based support for emission reduction, such as a joint bond issuance with UNICEF, wildlife conservation bonds, an emission reduction-linked bond in Vietnam, and a concessional financing trust fund.

Promoting debt transparency and sustainability, which are crucial to reestablishing investment and growth, was one of Malpass’s main initiatives. The Bank Group, under Malpass’s direction accomplished these:

Commenced the “Roundtable” process for the Global Sovereign Debt of 2023 with the IMF to strengthen the debt restructuring procedure.

Issued the timely report titled “Global Waves of Debt” in December 2019, which called for “debt management and transparency to be top priorities for policymakers—so they can increase growth and investment and ensure that the debt they take on contributes to better development outcomes for the people.” This report was published at a time when “debt management and transparency” was in high demand.

Collaborated with world leaders to end debt cycles that were unsustainable.

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Implemented the Sustainable Development Finance Policy (SDFP) of the Bank to encourage countries to move toward sustainable and transparent financing.

Fortified obligation compromise and announcing, including national bank trade lines, On the planet Bank’s primary information base, International Debt Statistics (IDS).

Enhancing Bank Group management’s efficiency was another major focus. During his residency, Malpass achieved these:

Transparency of internal and external activities, including financial and climate disclosures, was prioritized.

A significant realignment of World Bank operations was carried out to improve integration and collaboration between the Global Practices and Regional Operating units.

Pushed for fiscal discipline, increased cost recovery from trust funds, and a reduction in the Bank Group’s real estate footprint.

Collaborated with the presidents of six Historically Black Colleges and Universities (HBCUs) to encourage the exchange of talent and knowledge between HBCUs and developing nations.

Improved by double digits in Staff Engagement Surveys on working together, strategy clarity, and progress toward an open and trusting culture.

Initiated the Task Force on Workplace Culture, the Anti-Racism Task Force, and the Sexual Harassment Working Group to aid in the creation of a workplace that is better, more cohesive, collaborative, and responsive.

Managed multiple threats to the safety of staff, such as staff evacuations from Afghanistan, Myanmar, Sudan, and Ukraine and coup d’états in the Sahel following.