INDIAN-AMERICAN AJAY BANGA NOMINATED AS WORLD BANK CHIEF BY US

Fri 24 February 2023:

US President Joe Biden announced that the US is nominating Ajay Banga, an India-American businessman who has served as the CEO of Mastercard, to be the president of the World Bank.

The decision was described by Bloomberg as a “surprise pick”, as the World Bank said on Wednesday that it would “strongly encourage” women nominees to replace the outgoing David Malpass. The latter announced his resignation and will be stepping down by June 2023, three years into a five-year tenure.

Bloomberg said that analysts had pegged Samantha Power, head of the US Agency for International Development, and Ngozi Okonjo-Iweala, the current head of the World Trade Organisation, a dual Nigeria-US citizen, as the favourites.

The report added that while the official nomination process to replace Malpass opened on Thursday, a final selection isn’t expected until early May. However, Washington’s nominee has traditionally taken the top spot because the US is the largest shareholder in the World Bank. The nominee is subject to confirmation by the board of executive directors, to serve for a five-year, renewable term.

The bank has historically been headed by someone from the United States, its largest shareholder, while a European heads the International Monetary Fund. The news agency Reuters said that though Banga’s nomination is the first to be made public, the bank will accept nominations from other member countries through March 29. Germany, another major shareholder, said the job should go to a woman since the bank has never been headed by one.

Banga is the first Indian-born nominee for the role.

In a statement, Biden said that Banga is “uniquely equipped to lead the World Bank at this critical moment in history. He has spent more than three decades building and managing successful, global companies that create jobs and bring investment to developing economies, and guiding organisations through periods of fundamental change. He has a proven track record managing people and systems, and partnering with global leaders around the world to deliver results.”

Biden’s emphasis on Banga’s ability to guide organisations through “periods of fundamental change” comes as his administration is attempting to overhaul the development lender from focusing on country-specific lending to global issues like climate change and pandemics. Malpass’s premature exit comes amid criticism of his stance on climate change – he was nominated by former US President Donald Trump in February 2019 and was seen as a supporter of his environmental policies.

The US president also noted that Banga has “critical experience mobilising public-private resources to tackle the most urgent challenges of our time, including climate change”. He added: “Raised in India, Ajay has a unique perspective on the opportunities and challenges facing developing countries and how the World Bank can deliver on its ambitious agenda to reduce poverty and expand prosperity.”

Banga currently serves as vice chairman at equity firm General Atlantic. He served as president and CEO of Mastercard for a decade and has held various positions at Citigroup Inc.

Bloomberg said that Banga’s nomination comes at a time when the World Bank and the International Monetary Fund are “facing growing demand for their assistance, with 60% of low-income nations at or near distress, with countries owing their creditors hundreds of billions of dollars”.

According to the New York Times, Banga’s selection “could disappoint some climate activists who have been calling on the Biden administration to nominate a president with a strong background in environmental issues”. The newspaper said his “lack of direct public sector experience could also be viewed with skepticism by some development experts”.

-The Wire

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