Ajay Banga selected 14th President of the World Bank

Indian American executive to lead Bank Group’s “ambitions and efforts aimed at tackling the toughest development challenges facing developing countries.”

The Executive Directors of the World Bank have selected Indian American business executive Ajay Banga as President of the World Bank for a five-year term beginning June 2, 2023.

“The Board looks forward to working with Mr. Banga on the World Bank Group Evolution process, as discussed at the April 2023 Spring Meetings, ” the development lender wrote in a statement published shortly after his selection on May 3.

Read: Ajay Banga wants to give World Bank new direction (April 14, 2023)

The bank also said it looked forward to working with Banga on “all the World Bank Group’s ambitions and efforts aimed at tackling the toughest development challenges facing developing countries.”

Banga, the US candidate who was the sole nominee for the top job, will be taking over from David Malpass who is stepping down early amid criticism over his stance on climate change.

Under an unwritten arrangement, a US citizen has historically held the presidency of the Washington-based development lender, while the International Monetary Fund has been run by a European.

Banga, 63, who was born into a Sikh family in Pune, India is a naturalized US citizen. He most recently served as Vice Chairman at General Atlantic. Previously, he was President and CEO of Mastercard, a global organization with nearly 24,000 employees.

Under his leadership, MasterCard launched the Center for Inclusive Growth, which advances equitable and sustainable economic growth and financial inclusion around the world.

He was Honorary Chairman of the International Chamber of Commerce, serving as Chairman from 2020-2022. He became an advisor to General Atlantic’s climate-focused fund, BeyondNetZero, at its inception in 2021.

Read: Ajay Banga poised to become World Bank president (March 30, 2023)

Banga served as Co-Chair of the Partnership for Central America, a coalition of private organizations that works to advance economic opportunity across underserved populations in El Salvador, Guatemala, and Honduras. He was previously on the Boards of the American Red Cross, Kraft Foods, and Dow Inc.

He is a co-founder of The Cyber Readiness Institute and was Vice Chair of the Economic Club of New York. Banga was awarded the Foreign Policy Association Medal in 2012, the Padma Shri Award by the President of India in 2016, the Ellis Island Medal of Honor and the Business Council for International Understanding’s Global Leadership Award in 2019, and the Distinguished Friends of Singapore Public Service Star in 2021.

Banga told reporters that during his candidacy, he wanted to see greater private sector funding to help tackle financing for global problems.

“There is not enough money without the private sector,” he said, adding that an organization like the World Bank should set up a system that could share risk or mobilize private funds to achieve its goals. “These are all tools in the toolkit and I’m going to try and figure it out,” he said.

US Treasury Secretary Janet Yellen said last month that she was confident Banga has “the right experience and track record of bringing together governments, the private sector, and non-profits to deliver on our ambitious goals.”

Banga will take control of the bank shortly after member countries endorsed measures to allow it a $50 billion lending boost over the next decade — a key objective of outgoing president Malpass. The move is part of an ongoing evolution of the development lender amid pushes for it to meet global challenges like climate change.

Read: Ajay Banga Selected 14th President of the World Bank (May 3, 2023)

The bank estimates that developing countries will need $2.4 trillion every year for the next seven years just to address the costs of climate change, conflict and the pandemic.

The President of the World Bank Group is also the Chair of the Board of the Executive Directors of the International Bank for Reconstruction and Development (IBRD).
He is also ex officio chair of the Board of Directors of the International Development Association (IDA), International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and of the Administrative Council of the International Centre for Settlement of Investment Disputes (ICSID).

Read: Ajay Banga will be transformative at World Bank: Kamala Harris (February 24, 2023)

Read: Biden nominates Ajay Banga to lead World Bank (February 23, 2023)