Ajay Banga confirmed as the next World Bank President

Ajay Banga has been confirmed as the next President of the World Bank, succeeding David Malpass. The appointment comes at a time when the bank is looking to reshape its role in tackling climate change. The World Bank Board voted to approve Banga’s leadership for a five-year term, during which he will work on the World Bank Group Evolution process, and the bank’s efforts to address the toughest development challenges facing developing countries. Banga, a naturalised US citizen, was previously the CEO of Mastercard and has served on several boards, including those of the American Red Cross, Kraft Foods, and Dow Inc.

Banga believes that greater private-sector funding is necessary to tackle financing for global problems. He wants the World Bank to set up a system that can share risk or mobilise private funds to achieve its goals. Some developing and emerging economies are becoming increasingly uneasy about the United States’ continued control over the presidency of the World Bank, and are calling for greater involvement from the private sector.

Banga’s assumption of the World Bank presidency comes amid a challenging global economic environment, characterised by slowing growth and high-interest rates in several major economies. To address the costs associated with climate change, conflict, and the pandemic, the World Bank has estimated that developing countries will require $2.4 trillion annually for the next seven years. Some countries are concerned that the World Bank’s new objectives may result in neglecting the urgent economic development needs of its developing economy members. Therefore, there is a need to ensure that the development agenda is not diluted by the climate agenda.