World Bank’s President To Step Down June 30 Before End Of Tenure

David Malpass, the president of the World Bank Group, on Thursday informed the Board of Executive Directors of the multilateral institution of his intention to step down from his position by the end of the Bank Group’s fiscal year on June 30, prior to his tenure ending in 2024.

According to a statement Malpass shared in a LinkedIn post, addressed as “Intention to Step Down as President”,  having served more than four years, during his tenure, he focused on seeking stronger policies to increase economic growth, alleviate poverty, improve living standards and reduce government debt burdens.

It pointed out that over the last four years, the Bank Group responded quickly to global crises, mobilising a record $440 billion in response to the COVID-19 pandemic, war in Ukraine, sharp global economic slowdown, unsustainable debt burdens, climate change, food, fertilizer and energy shortages.

“It has been an enormous honor and privilege to serve as President of the world’s premier development institution alongside so many talented and exceptional people,” Malpass said.

“With developing countries facing unprecedented crises, I’m proud that the Bank Group has responded with speed, scale, innovation, and impact. The last four years have been some of the most meaningful of my career. Having made much progress, and after a good deal of thought, I’ve decided to pursue new challenges.

“I want to thank our staff and Boards of Directors for the privilege of working with them every day to strengthen the effectiveness of our operations in the most challenging of times,” he added.

Undoubtedly, with developing countries under severe financial pressure, Malpass met frequently with world leaders to discuss supportive policies, including debt reduction to break the cycles of unsustainable debt.

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Malpass said under his leadership, the Bank Group more than doubled its climate finance to developing countries, reaching a record $32 billion last year.

He also led efforts to enable and increase private sector investment and trade and contributed thought leadership to the Bank Group’s analytical products on fiscal and monetary policy, currency systems, and governance reform.

“Strengthened the institution’s management and personnel and will leave the Bank Group with solidified finances and fundraising to support its AAA credit rating,” the statement added.

“The Bank Group is fundamentally strong, financially sustainable, and well positioned to increase its development impact in the face of urgent global crises,” said Malpass.

“This is an opportunity for a smooth leadership transition as the Bank Group works to meet increasing global challenges, facilitate private investment, sharpen its focus on global public goods, and maintain strong momentum on operational delivery and portfolio performance for client countries.”

It pointed out that during Malpass’s tenure, the Bank Group accomplished the following: “Implemented record surges in financing of over $157 billion in response to the COVID-19 pandemic and $170 billion in response to the war in Ukraine; completed IBRD and IFC capital increases, record IDA19 and IDA20 replenishments, and rapid ramp-up of medium- and long-term bond issuance; provided emergency health and vaccine operations in more than 100 countries; mobilised $18 billion in emergency financing for Ukraine to support the continuation of essential government services, among others.

One of Malpass’s key initiatives was “to promote debt transparency and sustainability, key to rebuilding investment and growth,” it added.