Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Indian-Origin Ajay Banga Confirmed As Next World Bank President

Indian-Origin Ajay Banga Confirmed As Next World Bank President

"The Board looks forward to working with Mr. Banga on the World Bank Group Evolution process," the bank wrote in a statement published shortly after the board voted to approve his leadership for a five-year term.
The World Bank confirmed Wednesday that Ajay Banga will be its next president, handing him the reins at a pivotal time as it looks to reshape its role to better address climate change.

"The Board looks forward to working with Mr. Banga on the World Bank Group Evolution process," the development lender wrote in a statement published shortly after executives voted to approve his leadership for a five-year term.

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 begin his new role on June 2, taking over from David Malpass who is stepping down early amid criticism over his stance on climate change.

More private sector participation

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.

Despite growing public unease over America's continued grip on the bank's presidency from developing and emerging economies, the trend continues with Banga, 63, who was born into a Sikh family in India and is a naturalized US citizen.

Banga previously ran the payments company Mastercard for more than a decade between 2010 and 2021. He has also served on the boards of the American Red Cross, Kraft Foods and Dow Inc.

He 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."

Climate concerns

Banga will enter his new role at a difficult time for the world economy, with slowing global growth and high interest rates in many major economies.

Low-income countries are expected to suffer a double shock from higher borrowing costs and a decline in demand for their exports due to the tough economic conditions, IMF chief Kristalina Georgieva said last month, adding that this could fuel poverty and hunger.

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.

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.

While plans to reform the bank have been broadly welcomed, there has been concern by some countries that new objectives could relegate the pressing economic development needs of members in developing economies.

"We want to make sure that the development agenda is not diluted in the climate agenda," Abdoul Salam Bello, a member of the bank's executive board representing 23 African countries, told AFP last month.

"Climate is important, but we don't want to have a trade-off where we have an agenda that will be climate versus development," he said.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×