WASHINGTON – President Trump plans to appoint David Malpass, Secretary of State for the Treasury Department for International Affairs, Chief of the World Bank. He selects an outspoken critic of the institution, which has revised its long-standing practices, government officials said Monday
The officials, who insisted on anonymity to confirm the election before the official announcement, said the president would make his election on Wednesday announce. The nomination must be approved by the Bank's Board of Directors, but traditionally the US, the largest shareholder, has long since named its president.
This viewpoint is associated with a broader skepticism that Trump's government faces various structures of the so-called liberal international order, including the World Trade Organization, the North Atlantic Treaty Organization, the European Union and a number of international agreements. Just last week, the government announced that it had suspended a nuclear arms deal negotiated by President Ronald Reagan in 1987, which had caused Russian fraud.
The World Bank, controlled by the world's most developed nations, gives developing countries money for infrastructure and infrastructure development projects. Mr. Malpass urged the World Bank last year from his position in the Ministry of Finance to commit to a number of changes, even as they sought the capital increase.
Mr. Malpass, whose loyalty to the president is deeply rooted, was also the outstanding representative of the Ministry of Finance in trade talks with China and traveled to Beijing last month to set the framework for last week's talks in Washington. At that time he was a member of the delegation, which met with Chinese officials to reach an agreement on March 1st.
Mr. Malpass, like Mr. Trump, cited the World Bank's ongoing loans to China as an example of its outdated approach to financing developing countries. "The World Bank's largest borrower is China," said Malpass in a forum sponsored by the Foreign Relations Council in 2017. "Well, China has plenty of resources."
At the same meeting, Mr. Malpass denied that the president's approach " America First "is an isolationism towards international institutions.
"I want to make a clear distinction between isolation We are against it, and we believe that multilateralism has gone too far – to the point of damaging the growth of the US and the world," he said. "This viewpoint is sometimes misnamed populism, but I think it is a pragmatic, realistic response to a multilateral system that often distances itself from our values of limited government, freedom and the rule of law."
During the Congressional Statement in 2017 He said those who benefited from the World Bank's loan practices were "the people who fly a top-notch ticket to advise governments."
The United States has reviewed Mr. Malpass's selection with other major bank shareholders and privately received positive feedback, according to one of the government officials. They introduced Mr. Malpass as a constructive reformer who, despite his criticism, will work with other shareholders.
If confirmed, Mr. Malpass would fill the position given up by Jim Yong Kim who abruptly announced last month that he would resign as World Bank President nearly three years before his term expires.
Mr. The 62-year-old Malpass, who was part of Mr. Trump's transition team, was chief economist at Bear Stearns, the liquidated investment bank, from 1993 until his collapse in 2008. In 2010 he was unsuccessful as a Republican candidate for the United States Senate in New York. Previously, he worked as Deputy Secretary of State under President George Bush and as Deputy Minister of Finance under Mr. Reagan.
The election of Mr. Kim's successor was overseen by Minister of Finance Steven Mnuchin; Mick Mulvaney, Acting Chief of Staff of the White House; and Ivanka Trump, the oldest daughter of the president. The president met in person with the finalists for the position.
Others whose names came into consideration included Indra K. Nooyi, former Chief Executive of PepsiCo; Ray Washburne, president of Overseas Private Investment Corporation; and Heidi Cruz, an executive of Goldman Sachs and the wife of Senator Ted Cruz, Republican of Texas.
Trump's role in the lawsuit has voiced some criticism from ethics watchdogs who said it could create a conflict of interest for the president's daughter to be involved in international economic affairs if she was not completely separated from her assets.
Mr. Malpass's election was reported Monday by Politico and other news agencies.