WASHINGTON: Ajay Banga, former CEO of Mastercard, has been confirmed as the new president of the World Bank (WB). He will succeed David Malpass, who is stepping down amid criticism of his position on climate change. Banga was the sole nominee for the top position and will begin his five-year term on June 2, 2023.
The WB, a development lender, is presently undergoing a transformation to better resolve the challenge of climate change and other global problems. Banga’s appointment comes at a critical time for the World Bank, as low-income nations are expected to confront a double shock from higher borrowing costs and also declining demand for their exports due to the tough economic situation.
New President of World Bank
Banga has expressed his desire in order to see greater private-sector funding to support tackle financing for global issues. He says that the World Bank should also set up a system that can share risk to achieve its goals and targets. He will also take control of the WB shortly following member nations endorsed steps to permit it a 50 billion dollars lending boost over the upcoming years.
While plans to reform the WB have been welcomed, some nations have expressed concern that new objectives and targets could relegate the pressing economic development requirements of members in developing countries. Banga has promised to balance the development and progress agenda with the climate agenda.
The new president was born into a Sikh family in India and is a US citizen. He had also served on the boards of the American Red Cross, Dow Inc, and Kraft Foods. The US Treasury Secretary has also expressed confidence in Banga’s capacity to bring together the private sector, the governments, and non-profits to deliver on ambitious targets.
