Former Mastercard CEO Ajay Banga has been elected to lead the World Bank, becoming the first-ever Indian American to head the institution. Nominated by US President Joe Biden, Banga will replace David Malpass and begin his five-year term on 2 June. The US, the World Bank’s biggest shareholder, has traditionally selected the person to lead the institution, which lends billions of dollars to countries each year. Banga’s appointment comes at a consequential moment for the development organisation, with wealthy nations pushing the bank to increase its lending to fight climate change. The bank’s $100bn per year of loans to help developing countries cope with climate change falls far short of the $1tn they say is needed.
As detailed in BBC News, former Mastercard CEO Ajay Banga has been elected to lead the World Bank, becoming the first-ever Indian American to head the institution. Nominated by US President Joe Biden, Banga will replace David Malpass, who had faced criticism for questioning the role of humans in climate change. Banga’s appointment comes at a critical time for the World Bank, which has been under pressure to increase its lending to fight climate change. The bank’s current lending of $100bn per year falls far short of the $1tn needed to help developing countries cope with the effects of climate change.
Banga’s experience in the private sector and his focus on innovation and digital technology are expected to bring a fresh perspective to the World Bank. He started his career in India before working at Nestle and Citigroup, and then spending over a decade at Mastercard. President Biden called him “a transformative leader” who has the experience to run the World Bank.
In a statement, the bank’s executive directors expressed their support for Banga and their commitment to working with him on the institution’s efforts to tackle the toughest development challenges facing developing countries. The US, the World Bank’s largest shareholder, traditionally selects the person to lead the institution, which lends billions of dollars to countries each year. While developing countries have complained about this in the past, Banga was the only candidate for president and was elected with resounding approval from the executive directors.
Banga’s appointment comes at a time when the World Bank is facing increasing pressure to do more on climate change. Many developing countries are concerned that the focus on climate change will divert attention away from anti-poverty efforts. However, wealthy nations, including the US, have been pushing the bank to increase its lending to fight climate change. Banga’s experience in the private sector and his focus on innovation and digital technology are expected to help the bank strike a balance between these competing priorities.
In hindsight, the appointment of Ajay Banga as the new head of the World Bank is a significant moment for the institution. As the first-ever Indian American to lead the bank, Banga brings a fresh perspective and a focus on innovation and digital technology. His appointment comes at a critical time for the bank, which is facing increasing pressure to do more on climate change while also addressing poverty reduction efforts. With his experience in the private sector and his commitment to tackling tough development challenges, Banga is well-positioned to lead the World Bank into the future.