Following the announcement by the World Bank’s current head David Malpass to stand down early, US President Joe Biden stated on Thursday that Washington is nominating former Mastercard Chief Executive Ajay Banga to lead the organization.
The development lender has just begun taking nominations for candidates, and the bank has stated that women candidates will be “strongly” encouraged. The nomination period is scheduled to last until March 29.
While the head of the International Monetary Fund is usually European, the president of the World Bank is typically American.
Banga, an Indian-American who is presently vice chairman at the equity firm General Atlantic, is 63 years old.
He formerly served as Mastercard’s CEO.
According to a statement from Biden, Banga has “critical experience mobilizing public-private resources to tackle the most urgent challenges of our time, including climate change.”
The current World Bank President, David Malpass, announced last week that he would leave the position almost a year early. Malpass was appointed for the position by Biden’s predecessor, Donald Trump, in 2019.
Originally, his term would have concluded in 2024.
The nomination of Banga comes at a time when development financiers are being urged to restructure and better tackle global issues like environmental concerns.
Janet Yellen, the US Treasury Secretary, previously stated that the core lending models, in which nations borrow to make specific investments tackling developmental challenges, are “insufficient to meet the moment.”
The biggest shareholder in the World Bank is the United States.
Senior US government official: “Ajay has made combating climate change and mobilizing private capital to help power the green transition a priority at Mastercard and General Atlantic.”
The official stated, “These are the experiences and priorities that will direct and drive his work in the years to come at the World Bank.”
Yellen made a second statement on Thursday in which she praised Biden’s choice.
The World Bank needs a leader at a crucial time in its history, and Banga “has the right leadership and management skills, experience living and working in emerging markets, and financial expertise,” according to Yellen.
She continued by saying that his track record of establishing alliances between the public, private, and nonprofit sectors will be useful to him in “mobilizing the private capital and pressing for the reforms needed to meet our shared ambitions.”
When asked about the World Bank’s support of female candidates, a US official responded that Banga, who was born, raised, and spent the first part of his career in India, a developing market, had a “personal conviction and excellent track record” in fostering diversity in his work.
