Mumbai (India), 4th May 2023: The World Bank declared Wednesday that Ajay Banga will be its next president, appointing him at a critical juncture in the organisation’s efforts to restructure its role in order to effectively combat climate change.
On Wednesday, the World Bank’s 25-member Executive Board elected Ajay Banga as its President. US President Joe Biden had previously nominated Banga for this position.
Ajay Banga has been elected for a five year term, the Development Bank said in a statement, “The Board looks forward to working with Mr. Banga on the World Bank Group Evolution process.”
The World Bank added that it was looking forward to work with Banga on, “all the World Bank Group’s ambitions and efforts aimed at tackling the toughest development challenges facing developing countries.”
On June 2, Banga, the lone US candidate for the top position, will start in his new position and succeed David Malpass, who is resigning early due to the criticism he is facing for his position and ideas on climate change.
The Washington-based development lender has traditionally had a US citizen as its president, while the Europeans have led the International Monetary Fund, according to an unspoken agreement. The trend is followed by Banga, 63, an Indian Sikh who became a US citizen after the process of naturalisation.
However, This is the first time an Indian-born individual has been chosen to lead the World Bank. General Atlantic, one of the world’s largest private equity firms, hired Ajay as vice chairman.
Banga formerly served as CEO of Mastercard for more than a decade, from 2010 to 2021. In addition, he has served on the boards of the American Red Cross, Kraft Foods, and Dow Inc.
During his campaign, he told reporters that he wants to see more private sector investment to help with global crisis financing.
He had said, “Without the private sector, there isn’t enough money.” Further, adding that an organisation like the World Bank could build up a way to share risk or mobilise private capital to fulfil its aims.
“These are all tools in my toolkit, and I’m going to try to figure it out,” he explained.
