Malpass, World Bank President, Resigns One Year Before Term Ends

[Asia Economy Reporter Kwon Haeyoung] David Malpass, President of the World Bank (WB), announced on the 15th (local time) that he will step down from his position in June, one year earlier than his term. There is speculation that his early resignation is linked to past remarks related to climate change.

[Image source=Yonhap News]

President Malpass stated in a post on Twitter that day, "I met with the World Bank Board this afternoon and conveyed my intention to step down at the end of the fiscal year on June 30." He explained, "After much thought, I have decided to take on a new challenge," adding, "This will be an opportunity for a smooth leadership transition as the World Bank strives to respond to increasing global challenges."

Since World War II, the World Bank President has effectively been appointed by the United States, while the International Monetary Fund (IMF) President is appointed by Europe. Janet Yellen, U.S. Secretary of the Treasury, issued a statement that day saying, "We expect the World Bank Board to conduct a transparent and merit-based expedited nomination process."

Malpass, a former U.S. Treasury Deputy Secretary, was appointed in April 2019 after his predecessor, Korean-American President Kim Yong, stepped down mid-term due to policy disagreements with then-President Donald Trump. The term for the World Bank President is five years, with the possibility of renewal.

Some are focusing on Malpass’s past remarks related to climate change as the background for his early resignation. In September last year, at a climate change event, when asked if he agreed with the assessment that fossil fuel use is a cause of climate change, he avoided answering by saying, "I am not a scientist," which led to accusations of climate change denial and pressure to resign. At that time, White House Press Secretary Karine Jean-Pierre stated in a briefing that she did not agree with Malpass’s response and expressed hope that "the World Bank will be a global leader in climate action."

This content was produced with the assistance of AI translation services.