On Wednesday, the World Bank’s board of governors announced the election of Ajay Banga, a former CEO of Mastercard, as the organization’s new President for a term of five years. Banga, a finance and development expert of Indian origin, has been tasked with revamping the lender to address pressing global issues such as climate change.
He was nominated for the post by the U.S. President Joe Biden in February and was the sole candidate to replace outgoing World Bank chief David Malpass, a former U.S. Treasury official who served in the Trump administration. Banga is scheduled to assume his new position on June 2.
Following a four-hour interview with Ajay Banga on Monday, the World Bank board conducted a vote in which 24 of its members elected Banga as the new President. However, Russia abstained from voting, breaking from the usual consensus-based process, according to a source familiar with the matter. Banga is set to take over from David Malpass, who will leave the bank on June 1. U.S. President Joe Biden congratulated Banga on his “resounding approval” to lead the World Bank, calling it one of the world’s most critical institutions in the fight against poverty and the promotion of global prosperity.
U.S. President Joe Biden expressed his confidence in Ajay Banga, stating that he would be a transformative leader who will bring his expertise, experience, and innovation to the position of World Bank president. Biden further emphasized Banga’s importance in helping the organization to evolve and address pressing global challenges, including climate change, which directly affect its mission of reducing poverty.
Treasury Secretary Janet Yellen also praised Banga, stating that he possesses the necessary leadership and management skills for the job, and will be instrumental in advancing additional reforms. She specifically cited his ability to form partnerships between the public and private sectors and nonprofit organizations as crucial for the World Bank’s success.
Treasury Secretary Janet Yellen highlighted that Ajay Banga recognizes the interrelated nature of the challenges the World Bank is facing, including climate change, pandemics, and extreme poverty. She also noted that Banga has been successful in building a broad global coalition around his vision for the bank during his candidacy.
According to one source familiar with the selection process, board members view Banga as a “true change maker” who will help expedite reforms at the World Bank. The bank already provides loans totaling billions of dollars to developing countries, but it is striving to increase its lending to support these nations in addressing global challenges, such as climate change.
The World Bank’s board of governors on Wednesday elected Ajay Banga, a former Mastercard CEO, as the new president for a five-year term. Banga was nominated for the post by US President Joe Biden in February and was the sole candidate to replace departing World Bank chief David Malpass. Banga’s appointment will be effective from June 2, and he will be responsible for revamping the bank to address global issues such as climate change and poverty reduction. The decision to appoint Banga was made by a vote of 24 board members, with Russia abstaining.
Treasury Secretary Janet Yellen said Banga has the right leadership and management skills for the job and will play a critical role in pushing forward with additional reforms. The World Bank has been traditionally led by an American, while the International Monetary Fund has been led by a European.
Banga’s extensive outreach efforts have included meetings with officials from 96 governments since his nomination, according to the source. During a three-week world tour, he traveled to eight countries and met with government officials, business leaders, and civil society groups, covering a total of 63,643 kilometers.
