27th Parliamentary-Intelligence Security Forum – Keynote Remarks

Hon. David Malpass focused on the weakening of U.S. soft power and the broader breakdown of the global economic system. He described the world as being in a dangerous and unstable period, with deteriorating political and economic conditions in parts of Africa and Europe reflecting a broader leadership vacuum.

Drawing on his experience at the World Bank and in past administrations, Malpass argued that market-based systems and private-sector capital flows are essential for global growth. However, he said these are being undermined by China’s state-controlled economic model, capital controls, and influence in global institutions. He criticized China’s role in delaying sovereign debt restructurings in countries such as Zambia, Ethiopia, Sri Lanka, Ghana, and Suriname, particularly through the G20 Common Framework process. He contended that major global institutions including the G20, the WTO framework, and multilateral development banks are increasingly ineffective and in need of fundamental reform. He argued that the global trading system was built on market principles that are not universally shared anymore, limiting its functionality.

He also highlighted currency instability in developing economies, particularly across Africa, warning that many countries face solvency not just liquidity crises. He stressed that stable currencies are foundational for private sector growth, citing Malaysia’s recovery from the 1997–98 Asian financial crisis as an example of successful stabilization.

Hon. Malpass concluded that the international financial system, development strategies, debt restructuring processes, and climate financing commitments require major rethinking. With leadership changes occurring across G7 countries, he suggested there is now an opportunity for the United States to rebuild its soft power and reassert principled economic leadership globally.