Against the backdrop of the coronavirus pandemic, World Bank President David Malpass has been a surprisingly outspoken advocate for policies to combat global warming, curb economic inequality and use multilateral institutions to mitigate the worst effects of the pandemic. combat.
Why it matters: Nominated by former President Donald Trump and long-time skeptic of multilateral institutions, many feared that Malpass would weaken the World Bank’s work on climate change or make it more ‘America First’ in its orientation. But that was not the case, as he explained on “Axios on HBO.”
The big picture: Malpass leads one of the world’s most powerful financial institutions whose mission is to reduce global poverty and is often the last resort for countries struggling to survive.
- “We’ve seen this growing, increasing inequality … it looks like the system we currently have is not working.”
- “There is less and less capital available for small businesses. And there is a centralization of wealth within the different economies.”
Where it is: In December, the World Bank raised its target and now expects 35% of its funding to deliver on average ‘climate side benefits’ over the next five years. That’s up from 28% in 2019 and an 18% target under Malpass predecessor Jim Yong Kim.
- The Bank was also a strong supporter of the implementation and support of the Paris climate accord, with Malpass telling “Axios on HBO” that the Bank was “deeply involved in this effort”.
About inequality, Malpass is one of the most outspoken critics of the current state of affairs and the way central banks have dealt with the issue.
- “Inequality is a major challenge for political systems and also for people’s health, for their livelihoods,” said Malpass.
- “There isn’t much for people at the bottom of the scale. The main thing that helps them is education and jobs. And both have been harmed during the COVID crisis.”
Flashback: When Malpass was nominated in 2019, Stewart Patrick, a senior fellow at the Council on Foreign Relations, wrote that Malpass held views that were “contrary to the Bank’s mission.”
- Patrick also said Malpass shared Trump’s “misguided view that multilateral institutions are inherently at odds with US sovereignty and national interests, and that he can count on him to undermine the bank’s invaluable work worldwide.”
- “He’s exactly the wrong person at the wrong time to run the bank,” Patrick concluded.
Kim reportedly left his post three years early due to disagreements over the Trump administration’s position on climate change, including Trump’s claim that climate change was a “hoax” and his plans to pull out of the Paris Agreement.
The last word: “Climate change, poverty and inequality are defining issues of our time,” Malpass said in a recent speech.