Guwahati: President of the World Bank David Malpass said on Wednesday that he will resign before the conclusion of his tenure.
“It has been an enormous honor and privilege to serve as President of the world’s premier development institution,” Malpass said in a statement. “With developing countries facing unprecedented crises, I’m proud that the Bank Group has responded with speed, scale, innovation, and impact.”
Malpass will step down on June 30, the conclusion of the World Bank’s fiscal year, after serving more than four years in the role, said the World Bank.
The 187-nation World Bank provides loans to developing nations in an effort to fight poverty. Malpass was selected to lead the World Bank in 2019 by former US President Donald Trump for a five-year term. The United States traditionally appoints its president because it is the largest stakeholder.
The organisation responded to numerous crises during Malpass’ time in charge, including a pandemic around the world and Russia’s conflict in Ukraine. According to the World Bank, Malpass responded to both by implementing historic financial increases. Additionally, he concentrated on measures that would spur economic expansion, lighten the burden of public debt and lessen poverty.
But there has been debate over his presidency.
Malpass’ resignation comes months after calls for him to resign mounted as a result of his refusal to accept the scientific consensus that fossil fuels were responsible for global warming.
Climate activists criticised Malpass in September after he declined to say if he agreed with the scientific consensus that burning fossil fuels was dangerously warming the globe at a climate panel, according to CNN.
Meanwhile, Treasury Secretary Janet Yellen thanked Malpass for his service and said, “While we all must continue to raise our collective ambitions in the fight against climate change, during President Malpass’ tenure the World Bank has made important recent advances in this area.”
“The world has benefitted from his strong support for Ukraine in the face of Russia’s illegal and unprovoked invasion, his vital work to assist the Afghan people, and his commitment to helping low-income countries achieve debt sustainability through debt reduction,” she added.
The resignation enables the Biden administration to appoint a new World Bank president.
The International Monetary Fund’s director is generally chosen by the European Union while the US traditionally chooses the World Bank’s president a five-year position.