Ajay Banga, the former CEO of Mastercard, has been elected as the new president of the World Bank for a five-year term beginning on June 2, according to a statement released by the Bank on Wednesday. Banga, who is of Indian origin, will be tasked with repositioning the institution to tackle global crises, with a particular focus on climate change.
The appointment of Ajay Banga came after he was nominated for the position by United States President Joe Biden in February. He was the sole candidate to replace David Malpass, who announced earlier this year that he would step down in June, almost a year before the end of his five-year term. Malpass, a former US Treasury official, faced criticism for his stance on climate change, with some climate activists calling for his resignation.
The election of Ajay Banga followed a four-hour interview with World Bank board members on Monday, and his appointment was approved in a vote by 24 of the board’s 25 members, with Russia abstaining. This marked a departure from the Bank’s usual consensus-based decision-making process.
Biden congratulated Banga on his election, calling it a “resounding approval” and describing the World Bank as “one of humanity’s most critical institutions to reduce poverty and expand prosperity around the globe”.
Ajay Banga, who was born in India and raised in the United States, served as Mastercard’s CEO from 2010 to 2021. He is also a member of the International Cricket Council (ICC) Board and was appointed as a member of the US-India CEO Forum by the US and Indian governments in 2016.
He takes over the World Bank at a critical time, as the institution faces mounting pressure to tackle global crises such as climate change, poverty, and inequality. The election of Ajay Banga has been welcomed by some experts as a positive step towards addressing these challenges, given his background in finance and development. However, he also faces significant challenges, including the need to reform the Bank’s governance structure, address the impact of the COVID-19 pandemic, and promote sustainable development in a rapidly changing global environment.
How the US Nominated Ajay Banga to Head the World Bank
On February 23, 2023, US President Joe Biden nominated former Mastercard CEO Ajay Banga to become the next president of the World Bank. The move was welcomed by many who praised Banga’s business acumen and experience in tackling urgent global challenges such as climate change.
Biden cited Banga’s decades of experience building global companies and public-private partnerships to address pressing issues such as climate change, and said Banga has a proven track record of working with global leaders.
Since its inception at the end of World War II, the World Bank has been led by an American, while the International Monetary Fund has been led by a European. Banga was born in India and spent his early career there before becoming a US citizen in 2007.
