Outgoing World Bank President Lauded by Once-Skeptical Employees

When, four years ago, President Trump nominated Wall Street veteran David Malpass to run the World Bank, the reaction from many in international development circles was predictably grim. A report in the Washington Post quoted observers as saying that he was a man of “dubious qualifications” “committed to undermining the multilateral mission of the bank,” and that his appointment “suggests a political agenda” by the administration aimed at hobbling a globalist institution.A report by National Public Radio quoted a senior fellow at the Center for Global Development, Justin Sandefur, as saying “David Malpass is a Trump loyalist who has committed economic malpractice on a wide range of topics.” A former Treasury Department official during the George W. Bush years, Tony Fratto, tweeted that “David Malpass would be a disastrous, toxic choice for World Bank president,” according to NPR’s report.If any of the employees at the World Bank had reservations at the time, they kept them to themselves. Now, after four years of working with Mr. Malpass, they have not been as reserved, with many saying in a public forum last week that Mr. Malpass has been one of the most effective and inspiring leaders the Bank has ever had.His priority was anti-poverty projects based on free market principles. Speaking at a town hall at the Bank’s headquarters in Washington last week, the Bank’s country director for Argentina, Paraguay, and Uruguay, Marianne Fay, said she initially had misgivings about his appointment, and described being summoned to Mr. Malpass’ office during his first month in the post to talk about sexual harassment in the workplace.“I was frankly terrified because I had no idea what this new president thought about the issue, whether he supports it or not,” Ms. Fay said. Over the course of a meeting that lasted twice as long as it was supposed to, she said, “David was asking the right questions and it was obvious that he cared and that he had a deeply grounded set of ethics and a deep commitment to decency in the workplace. The years that followed showed that I was right in my interpretation.”At the same meeting, the director of the bank’s Health and Safety Directorate, Brian Davey, praised Mr. Malpass for steering the bank through one of the deadliest public health crises in generations. “Throughout this period, we truly appreciated your flexibility, your interest and your frequent personal engagement with us as we confronted the ever-shifting spectrum of issues and challenges,” Mr. Davey said. “You always listened carefully to our inputs and recommendations and you never failed to provide us with pragmatic guidance in support of decisions,” Mr. Davey said. “Your leadership was fundamental in enabling us to provide the best possible support to our staff during this unprecedented time.”The list of areas on which Mr. Malpass focused his attention during his tenure — as described during the town hall — are hardly those one would expect of the average MAGA-affiliated appointee. Anti-racism and the role of women in the workplace. The role of the private sector in the Developing World. Supporting the bank’s effort to mitigate climate change, and for projects that offer quick and concrete results within the Bank’s dual missions of alleviating poverty and encouraging shared prosperity.Mr. Malpass himself summed up his agenda with one phrase: “Measuring success by impact, not just by how much you spend.”The lanky economist leaves the bank later this week one year shy of his initial appointment of five years. It was the topic of climate change that dogged him in his final days, when climate activists targeted him for being what they called a “denier” on the issue of man-made global warming. He was belittled behind his back by Vice President Gore and the Biden administration’s climate tsar.The duo agitated for for Mr. Malpass’s ouster and along with Treasury Secretary Yellen wanted the bank — established at the Bretton Woods parley at the end of World War II — to make climate change a priority. Mr. Malpass’s replacement is the former chief executive of MasterCard, India-born Ajay Banga, has in the past spoken much more forcefully on the need for urgent action on climate change.Writing in the Wall Street Journal what amounts to a farewell commentary on the state of the global economy, Mr. Malpass warned policy-makers around the globe that a coming era of slow growth tied to excessive debt is likely to hamper whatever actions his successor at the World Bank can take to encourage economic progress in the Developing World. A prolonged period of low interest rates has led many countries to emphasize investment in government instead of the private sector, he says.Unless the scourge of inflation is addressed “the likelihood is a long period of slow global growth and downward asset repricing,” he writes. “Capital will continue moving in the wrong direction, toward a narrow group of ‘sinks’— governments, big corporate borrowers, excess consumption — rather than to small businesses, working capital and forward-moving developing countries that could add to long-term global growth.”

Outgoing World Bank President Lauded by Once-Skeptical Employees

Outgoing World Bank President Lauded by Once-Skeptical Employees

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