David Malpass To Head World Bank The nomination of Treasury Department official David Malpass already has generated controversy in the international development community.
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Trump Nominates Outspoken Critic David Malpass To Head World Bank

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Trump Nominates Outspoken Critic David Malpass To Head World Bank

Trump Nominates Outspoken Critic David Malpass To Head World Bank

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ARI SHAPIRO, HOST:

Today President Trump nominated a longtime critic of the World Bank to be its next leader. Conservative economist David Malpass is now a top official at the Treasury Department. His nomination is already generating controversy, but the Bank's board is expected to approve it. NPR's Jim Zarroli reports.

JIM ZARROLI, BYLINE: David Malpass was chosen after a long search process overseen by Treasury Secretary Steve Mnuchin and the president's daughter Ivanka. With Malpass, they ended up choosing somebody already well-known to Trump.

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PRESIDENT DONALD TRUMP: He's been with me for a long time. He's been a supporter for a long time, a supporter in a financial sense. Even before I ran, he liked the job I did. I like those people somehow.

ZARROLI: The two men have known each other since their days in New York. Malpass was chief economist at Bear Stearns, the investment bank that crashed and burned during the financial crisis. He later started an economic forecasting firm. Before that, he served in the Reagan and George H.W. Bush administrations.

Malpass has long been a vocal critic of the World Bank. The Bank has 189 member countries with a mission to reduce poverty in developing nations. It lends out tens of billions of dollars a year for things such as power plants and factories. The loans are guaranteed by the U.S. and other member countries, and Malpass has complained that much of the money goes to places that don't need it, like China.

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DAVID MALPASS: And it doesn't make sense to have money borrowed in the U.S. using the U.S. government guarantee going into lending in China for a country that's got other resources and access to capital markets.

ZARROLI: Malpass has promised to bring what the administration calls pro-growth reform to the World Bank. His nomination was immediately criticized by those who see him as hostile to the Bank's mission. Tony Fratto, who served in the George W. Bush administration, says Malpass' nomination is toxic.

TONY FRATTO: You can scour David Malpass' background for any interests in, you know, alleviating poverty and working on development strategies, and you won't find anything.

ZARROLI: Whether the critics can do anything about the appointment is unclear. Malpass' nomination has to be approved by the World Bank's board, which can in theory appoint someone else. But Charles Kenny, a former World Bank employee now with the Center for Global Development, says the board has always deferred to the United States on who gets named president.

CHARLES KENNY: The rest of the world and the United States are finding lots to disagree on at the moment. I guess in the grand scheme of things, who gets to run the World Bank isn't, you know, top of the list of issues to add to that growing list (laughter).

ZARROLI: One World Bank official who didn't want to be named noted that in the Treasury Department, Malpass had overseen a big injection of money to the World Bank last year. That indicates he may not be as hostile to the Bank as his past rhetoric suggests. Jim Zarroli, NPR News, New York.

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