Explained: Why The US Has Dominated The List Of World Bank's Past Presidents

Shortly after the nomination process for World Bank president began on February 23rd, US President Joe Biden nominated former Mastercard CEO Ajay Banga for the position.

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India-born Ajay Banga got US citizenship in 2007.

US Dominating The World Bank Presidents' List

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While there is still a month to go for the nomination process to end on March 29th, Ajay Banga¡¯s confirmation as the next World Bank President now seems to remain just a mere formality after the US President's nomination, as the World Bank presidency has traditionally been held by the United States always.

All 13 Presidents of the World Bank so far have been US citizens. IMF¡¯s Bulgaria-born chief Kristalina Georgieva, who had become World Bank¡¯s acting president briefly in 2019, is the only exception.

Besides her brief stint at the World Bank as its acting president, the World Bank¡¯s all 13 presidents have been from the US. The IMF chief has also tweeted to share her happiness about Banga's nomination.

Happy to hear that Ajay Banga, who I have known for many yrs, has been nominated as a candidate to lead @WorldBank. His exec leadership skills & drive for innovation are well known. But even more so I admire his commitment to sustainable devt, to do good & help those most in need pic.twitter.com/eIh8mJF8oa

¡ª Kristalina Georgieva (@KGeorgieva) February 23, 2023

Reasons Behind US' Dominance

So, is this connection between the United States and the World Bank presidency a coincidence? Well, it seems not.

The US is the single-largest shareholder in the World Bank, with 16.35 per cent of total capital subscription and over 15 per cent of the votes. The United States is also the only country with veto power over certain changes in the Bank's structure.

"The US has picked its president, using the appointment as a vehicle to advance American economic interests, power and development priorities around the globe," a report in The Wall Street Journal encapsulates the US domination of the World Bank.

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The genesis of the World Bank provides another reason for the pre-eminence of the United States. The World Bank was established towards the end of World War II, which devastated European economies but led to the emergence of the US as an economic powerhouse. Washington DC bought the most shares, controlled 35.07 per cent of the voting rights, and heavily funded the Bank, as per NDTV report.

In its early years, the World Bank focused on the reconstruction of Western Europe. The US, which largely escaped the war's tragedy, was in a pole position to take up the leadership role.

On the other hand, according to an informal understanding, the Europeans chose to lead the International Monetary Fund, which was also established alongside the World Bank. All Managing Directors of the IMF have been Europeans, with the current one being Bulgaria-born Kristalina Georgieva.

Also Read: NITI Aayog CEO Parameswaran lyer Named Executive Director Of World Bank

World Bank President Selection Criterion

The Board of Executive Directors of the World Bank Group had met last week under the Chairship of its Dean, Mr Koen Davidse, to discuss the selection process for the next President of the World Bank Group, following the announcement by David Malpass about his intent to step down from his position by June 30, 2023.

The World Bank Group Board of Executive Directors affirmed its commitment to an open, merit-based and transparent selection process for its next President.

Candidates for the position of World Bank President should meet the following criteria:

1.A proven track record of leadership and accomplishment, particularly in development;

2.Experience of managing large organizations with international exposure, and a familiarity with the public sector;

3.The ability to articulate a clear vision of the World Bank Group¡¯s development mission;

4.A firm commitment to and appreciation for multilateral cooperation; and,

5. Effective communication and diplomatic skills, impartiality and objectivity in the performance of the responsibilities of the position.

Candidate nominations should be submitted by March 29, 2023, at 6:00 p.m. EST, and must be made by Executive Directors, or by Governors through their Executive Director.

Candidates for World Bank president must be nationals of the bank¡¯s member countries. Executive Directors would strongly encourage women candidates to be nominated, World Bank has said.

Process For Selection After Shortlisting

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Following the close of the nomination period, the Executive Directors will decide on a shortlist of up to three candidates and publish the names of the shortlisted candidates with their consent. Formal interviews of all shortlisted candidates will be conducted by Executive Directors with the expectation of selecting the new President by early May 2023.

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

List Of Past Presidents At the World Bank

Here is the list of people who have served as presidents of the World Bank Group.

Now it remains to be whether ex-Mastercard CEO Ajay Banga goes on to become the next World bank President (who is also a US citizen), or some non-US candidate manages to take the position this year.

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