President Donald Trump is looking to David Malpass as the new head of World Bank. This would set this institution on a path that ensures all funds earmarked for less developed countries are accounted for in the future. According to reports, Trump’s course is now forcing Europeans to reconsider all institutions that are run by unelected bureaucrats and that they be held accountable for all actions going forward.
Although the World Bank’s most recent stated goal is is the reduction of poverty, originally it was a post WWII institution, tabled by several Americans and Europeans at the Bretton-Woods Conference in 1944. The purpose was to build a bank that would lend to all economies weakened by the great war and help those impoverished nations by building infrastructure.
Based in Washington DC, the World Bank, along with the IMF have drifted away from that original mandate, and have become far different institutions as the globalist creep that has moved into the United Nations, has also worked its way into the heart of World Bank and the International Monetary Fund. As such, billions of dollars earmarked for developing nations seems to have morphed into a kind of life support system, and this not only impedes targeted nations, but does not provide them with the building block they need to rise up on their own. Trump aims to hold all stakeholders accountable now, this is good news for developing countries.
A Brief History of Post WWII and Multilateralism
While the Bretton-Woods System is breaking down and burning, especially since the events of 1991 when the Soviet Union collapsed and the 2008 Great Recession, Globalism as we know it is giving way to Globalization, the old system of Nation States using the latest technology to trade, communicate and occasionally practice sensible immigration.
We at Classiarius believe that a sensible immigration policy, one that promotes a win-win situation for both parties has been proven again and again, as it delivers the economy people like Elon Musk, Barack Obama, Steve Jobs and others who founded firms like Apple, Google, and YouTube. Look at our audiovisual presentation from last month on World Bank – we saw this event coming. Globalization works better than Globalism in trade, technology transfer and immigration.
President Donald Trump has had a difficult relationship with World Bank and other multi-lateral institutions as he sees, as those who study geopolitics and demographics, like the works of Ian Bremmer (GZERO) and Peter Zeihan (Accidental Super Power), the globalist world order breaking down while Nation-based Globalization takes its place.
To accelerate the process breaking down the old world order, President Trump is now is said to be looking for a critic of Globalism in the US as the new Head of the World Bank. Note that since 1945 the World Bank head has been selected by the President of the United States so its not surprising that for the past 10 years, Chancellor Angela Merkel has tried to change that rule, Trump just laughed it off. Imagine the discussions in the European Union now, David Malpass, of the US Treasury, who is being put at the head of an institution that is the gold standard for Globalism. Now Trump and Malpass control its destiny.
The press in Europe are now saying that the judgement by the White House to pick Malpass is showing contempt for the institution as this selection falls short of international values and experience.
But to be clear David Malpass is focusing on Emerging Markets and more specifically, the economic growth of EM by making loans in development finance in countries that need it most. Imagine if, for the past 50 years, Haiti, Congo, Syria and other EM countries were the focus of World Bank and other institutions – the goal being to build their infrastructure with a target for strong economic growth in these countries – making them the new poster children of the EM community. This seems to be the stated goal for the NEW team at World Bank, efficient use of capital to build needy economies.
Mr Malpass told a congressional panel in 2017 that “globalism and multilateralism” had overstepped their bounds and had gone “substantially too far” and he went on to say that some multilateral institutions “were corrupt in their lending practices” and “the benefits do not actually get to the countries” that funds have been intended for. Who knows how many billions have been earmarked and lost for projects in the emerging market economies as these projects are never completed.
“David Malpass has a clear-headed vision of how development finance can best support the goal of greater prosperity for emerging market countries through productive economic growth,” is how one representative put it.
For Trump and Malpass the goal seems to be transparency and debt accountability for all funds spent in all emerging market countries- a position that Brussels strongly rejects. But imagine the number of institutions that actually need change, that actually need strong leadership who can bypass career bureaucrats.