WASHINGTON--The Trump administration has notified World Bank shareholders that President Donald Trump intends to pick senior Treasury Department official David Malpass as the U.S. nominee to lead the development lender, people familiar with the decision said on Monday.
The nomination of Malpass would put a Trump loyalist and a skeptic of multilateral institutions in line to lead the World Bank, which committed nearly $64 billion to developing countries in the year ended June 30, 2018.
Politico, which first reported the decision, said it would be announced on Wednesday, citing unidentified administration officials. Spokespersons for the White House and the U.S. Treasury declined comment.
A European diplomatic source said the Trump administration had notified several capitals of the Malpass nomination, adding that European shareholders of the bank were not likely to block it. Malpass, or any other U.S. nominee, would still need to win approval from the World Bank's 12-member executive board. While the United States holds a controlling 16 percent share of board voting power and has traditionally chosen the World Bank's leader, challengers could emerge.
If approved, Malpass, the U.S. Treasury's top diplomat as undersecretary for international affairs, would replace physician and former university president Jim Yong Kim in the role. Kim, first nominated by former U.S. president Barack Obama in 2012, stepped down on Feb. 1 to join private equity fund Global Infrastructure Partners, more than three years before his term ended, amid differences with the Trump administration over climate change and development resources.
The nomination signals that the Trump administration wants a firmer grip on the institution. Malpass in 2017 criticized the World Bank, the International Monetary Fund and other multilateral institutions for growing larger, more "intrusive" and "entrenched."
Over the past two years, Malpass has also pushed for the World Bank to halt lending to China, which he says is too wealthy for such aid, especially when Beijing has subjected some developing countries including Sri Lanka and Pakistan to crushing debt loads with its "Belt and Road" infrastructure development programme. China is the World Bank's third largest shareholder after Japan, with about a 4.5 percent share of voting power.
