More than two months after being nominated for the World Bank President role by US President Joe Biden, 63-year-old Ajay Banga has finally created history.
The former Mastercard CEO has become the first Indian-American to be elected as World Bank President. Pune-born?Ajay Banga?was also felicitated with the?Padma Shri?by the Indian government in 2016 in the field of trade and industry.
The World Bank confirmed yesterday that Ajay Banga will be its next president, and will take over the role from June 2, 2023, for a period of five years. Banga was elected unopposed. He will replace David Malpass, who is stepping down early amid criticism over his stance on climate change.
India's Finance Minister Nirmala Sitharaman showcased confidence that the incoming World Bank President Ajay Banga will utilise his corporate world experience in pursuing the goals of the multilateral lending agency.
"Hearty congratulations Ajay Banga on being selected as the President of @WorldBank. I am confident that you'll bring your wide experience in the corporate world for meeting the goals of the Bank," India's FM Sitharaman tweeted.
US President Joe Biden, who himself had nominated Banga for the role, said in a statement ¡± I want to congratulate Ajay Banga ¡ª my nominee for the next President of the World Bank ¡ª on his resounding approval by the Bank¡¯s Board of Governors. Ajay Banga will be a transformative leader, bringing expertise, experience, and innovation to the position of World Bank President.?
And together with World Bank leadership and shareholders, he will help steer the institution as it evolves and expands to address global challenges that directly affect its core mission of poverty reduction¡ªincluding climate change. Ajay will also be integral in bringing together the public and private sectors, alongside philanthropies, to usher in the fundamental changes in development finance that this moment requires.
I look forward to working with Ajay in his new role and to supporting his efforts to transform the World Bank, which remains one of humanity¡¯s most critical institutions to reduce poverty and expand prosperity around the globe."
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World Bank's press release mentioned that?the board looks forward to working with Mr Banga on the?World Bank Group Evolution?process, as discussed at the April 2023 Spring Meetings, and on all the World Bank Group¡¯s ambitions and efforts aimed at tackling the toughest development challenges facing developing countries.
Ajay Banga most recently served as Vice Chairman at General Atlantic. Previously, he was President and CEO of Mastercard.?
Under Banga's leadership, MasterCard launched the Center for Inclusive Growth, which advances equitable and sustainable economic growth and financial inclusion around the world. He was the 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. Banga served as Co-Chair of the Partnership for Central America, a coalition of private organisations 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.
Ajay Banga is also the co-founder of The Cyber Readiness Institute and was Vice Chair of the Economic Club of New York. He 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.
The Executive Directors followed the selection process agreed upon by shareholders in 2011. The process included an open, merit-based, and transparent nomination where any national of the Bank¡¯s membership could be proposed by any Executive Director or Governor through an Executive Director. This was then followed by thorough due diligence and a comprehensive interview of Mr Banga by the Executive Directors, as the press release mentioned.
Ajay Banga will be taking over many other key roles when he becomes World Bank President next month.
The President of the World Bank Group is also the Chair of the Board of Executive Directors of the International Bank for Reconstruction and Development (IBRD). The President 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).
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