CGD in the News

The U.S. Doesn’t Deserve the World Bank Presidency (The Atlantic)

February 12, 2019

From the article:

During his time in office, President Trump has named a climate-change skeptic and an energy lobbyist as the heads of the Environmental Protection Agency, a foreclosure profiteer to head the Treasury, a low-wage employer to run the Labor Department, and a critic of public schools to manage the Department of Education. His Energy Secretary once argued that the department should be abolished, and his one-time leader of the Consumer Financial Protection Bureau has argued that the bureau should not exist.

--

Nor does Malpass represent a strong or reassuring policy vision for the world’s most important anti-poverty institution. “I care deeply about the mission and about breaking out of poverty and achieving growth, and I am sure the World Bank can succeed,” Malpass assured reporters last week, as reported by the Wall Street Journal. But in Congressional testimony, he said institutions like the bank are “not very efficient,” and are “often corrupt in their lending practices and they don’t get the benefit to the actual people in the countries.” He has argued that the institution should do less and be less, and looks likely to nudge it to do less and be less.

As a result, development experts and global economists have broadly criticized the pick. “I frankly view him as a bad candidate,” said Scott Morris of the Center on Global Development, the influential Washington think tank. “He has a track record, both in views that he’s expressed and policy as [Treasury] undersecretary, which is pretty clearly hostile to ambition in the World Bank.”