David Malpass to step down as World Bank President

Washington: World Bank President David Malpass on Wednesday announced that he will resign before the end of his term, reported CNN.

"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 leave his position on June 30, the end of the World Bank's fiscal year, after serving more than four years in the role, said the World Bank.

The World Bank, a group of 187 nations, lends money to developing countries to help reduce poverty. Former US President Donald Trump appointed Malpass as World Bank chief in 2019 for a five-year period. As the largest shareholder, the United States traditionally appoints its president.

During Malpass' tenure, the organisation responded to multiple crises, including a global pandemic and Russia's war in Ukraine. The World Bank said Malpass implemented record surges in finances in response to both. He also focused on policies to increase economic growth, reduce government debt burdens, and help reduce poverty.

But his tenure has been controversial, reported CNN.

Malpass' exit comes months after calls grew for him to step down after he declined to acknowledge the scientific consensus that fossil fuels were warming the planet.

Malpass faced criticism from climate activists in September after he refused to confirm during a climate panel whether he accepted the scientific consensus that burning fossil fuels were dangerously warming the planet, reported 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 departure allows the Biden administration to install a new head of the World Bank.

The US traditionally gets to pick the president of the World Bank, which is a five-year post, while the European Union selects the head of the International Monetary Fund.