Accused of climatoscepticism, criticism of multilateralism and hostile to the reforms of the institution with a view to better funding from developing countries, the resigning leader was probably not the best defender of international cooperation.
by Julien Bouissou
The World Bank will soon change its leader. Its president, David Malpass, announced on Wednesday February 15, that he would resign by June 30, almost a year before the end of his five -year term, without giving any precise reason. Placed in this position by the former President of the United States Donald Trump in April 2019, the 66-year-old American was criticized for his lack of voluntarism in the fight against climate change.
He was also under pressure from shareholders to reform the largest multilateral development bank in the world. Barely six days before the announcement of this resignation on Thursday, February 9, the American secretary to the Treasury, Janet Yellen, called the institution located in Washington to “quickly” resources to help develop countries to face the Crises, in particular health and climatic.
While the financing needs linked to the adaptation to the global warming increase and that many rich countries have left the COVVI-19 crisis, several shareholders of the World Bank want the institution to strengthen its financing capacities by leaving the private sector. A report, commissioned by the G20 countries and published in October 2022, had advanced several avenues for reforms. 2> “no clear vision” of the development-climate articulation
One of them consisted in increasing the amounts of “due capital” by the shareholder countries, namely a capital available if necessary but not mobilized, which allows the bank to raise more funds on the Markets without risking seeing its degraded note with rating agencies. Another recommendation: the sale of certain loans to the private sector, in order to lighten its balance sheet and find the room for maneuver in its funding.
“But the World Bank was reluctant to initiate some of these reforms,” said Clemence Landers, researcher at the Center for Global Development, a Washington -based reflection group. David Malpass especially had the trouble to convince of the sincerity of his fight against climate change.
Questioned three times on the role of fossil fuels in the global warming during a round table organized by the New York Times in October 2022, the former under-secretary to the Treasury of Donald Trump in charge of international affairs had refused to take a stand, by replying that he was himself “not a scientist”.
Even if he then denied being a “climatosceptic” and highlighted the $ 31.7 billion (29.6 billion euros) in climate finance in 2022, or 36 % of the institution’s loans , NGOs accuse him of continuing to finance projects using natural gas. “He failed to formulate a clear vision of the role of the World Bank in terms of development and fight against climate change, and above all to articulate the two subjects without opposing them,” said Clemence Landers.
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