Advancing Economic Freedom: A Core Mission for World Bank’s Next Chief

National News

David
Malpass, President Donald Trump’s nominee to be the next president of the World
Bank, made a reassuring case for himself in a recent commentary in Financial
Times.

“The
World Bank has the opportunity to play a key role in fostering broadly shared
economic growth and meeting the challenges presented by the 21st-century
economy,” Malpass writes, adding:

This begins with a commitment to prioritize activities that will lead to broad-based growth in each borrower and to a stronger, more stable global economy. … [T]he bank should also facilitate the adoption of best practices for encouraging broadly shared growth and prosperity.

Undisputedly,
development assistance through the World Bank has been an important part of
America’s economic engagement with the world. Exercising strong leadership in
improving the effectiveness of multilateral development assistance and holding
the bank accountable for its development practices long has been in the U.S.
interest.

Not surprisingly, Malpass, 62, has proven credentials to carry on that critical task as the next chief of the World Bank, of which the United States is a founding member and the largest donor. He is a well-qualified advocate for what he calls “pro-growth policies including low taxes, spending control, stable money for the poor as much as for the rich, and the rule of law.”

Malpass, an economist, currently is the Treasury Department’s undersecretary for international affairs. He has been chief economist for the investment banking company Bear Stearns, a deputy assistant secretary of state for President George W. Bush, and an assistant treasury secretary for President Ronald Reagan.

In
transforming the World Bank into a more effective and performance-based
institution, Malpass will be well positioned to encourage policies and projects
that advance economic freedom.

That
undertaking is essential because it is not only at the core of the World Bank’s
mission, but also at the heart of America’s engagement with the bank. It is
clearly in America’s interest to take a leading role to enhance the bank’s
effectiveness in promoting economic freedom around the world.

Indeed,
at the core of encouraging economic development and reducing poverty is the
mission of advancing economic freedom so that dynamic and inclusive growth can occur
meaningfully for a greater number of ordinary people.

Economic
freedom, cultivated by the rule of law, limited government, regulatory
efficiency, and market openness, is critical to generating the widespread economic
dynamism that brings more opportunities for people to work, produce, and save.

This
multidimensional relationship between economic freedom and development has been
well documented in The Heritage Foundation’s Index of Economic Freedom. Not
only are high levels of economic freedom clearly correlated with greater levels
of prosperity, but economic freedom also facilitates progress in overall human
development.

As
the index has shown unambiguously over the past 25 years, adopting polices that
advance economic freedom is the key to unlocking broad-based growth reinforced
by a virtuous circle of opportunity, empowerment, and development.

Ensuring
and spreading economic freedom has proven to be the best way to alleviate
poverty
, lift the
standard of living
, and empower women
as well as men to participate fully in their countries’ economies.

Fortunately,
Malpass knows the power of economic freedom and seems determined to focus the
World Bank on what works in delivering measurable, tangible outcomes.

As
a free-market economist, David Malpass is a welcome candidate for the World
Bank presidency, which under his leadership could strengthen its role as a
force for encouraging growth and long-term economic development based on
advancing economic freedom for all.

https://www.dailysignal.com/2019/02/11/advancing-economic-freedom-a-core-mission-for-world-banks-next-chief/

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