The World Bank’s board of governors chose former Mastercard CEO Ajay Banga to a five-year term as president on Wednesday, ushering in an Indian-born finance and development specialist to restructure the lender to address climate change and other global issues.
In late February, U.S. President Joe Biden selected Banga, 63, to succeed retiring World Bank director David Malpass, an economist and former U.S. Treasury official. His new employment starts June 2.
Banga was elected following a four-hour World Bank board interview on Monday. Malpass leaves the bank on June 1. A person familiar with the procedure claimed 24 board members voted, with Russia abstaining, instead of the traditional consensus-based method.
Biden commended Banga on his “resounding approval” to lead the World Bank, “one of humanity’s most critical institutions to reduce poverty and expand prosperity around the globe.”
“Ajay Banga will be a transformative leader, bringing expertise, experience, and innovation to the position of World Bank President,” Biden stated. “He will help steer the institution as it evolves and expands to address global challenges that directly affect its core mission of poverty reduction—including climate change.”
Treasury Secretary Janet Yellen said Banga had the “right leadership and management skills” and would help advance reforms by forming public-private and nonprofit partnerships.
“Ajay believes that our challenges—from combating climate change, pandemics, and fragility to eradicating extreme poverty and fostering shared prosperity—are fundamentally interconnected. “During his candidacy, he has effectively built a broad global coalition around his vision for the Bank,” Yellen added.
Katie Malouf-Bous, interim head of Oxfam International’s Washington office, said the bank required “serious reform” to address the growing wealth gap, but that would involve massive public spending and “guardrails around private finance that has run riot for too long.”
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