WASHINGTON – U.S. President Joe Biden announced on Thursday that the United States had nominated former Mastercard CEO Ajay Banga to lead the World Bank, citing his critical experience with global challenges such as climate change.
The announcement comes just days after Trump appointee David Malpass announced his intention to leave the 189-nation poverty reduction organization in June. His five-year term would have ended in April 2024.
The United States prioritizes addressing the effects of climate change at the multilateral bank. Leading climate figures have urged the Biden administration to use Malpass’s early departure to overhaul the powerful financial institution, which has been increasingly criticized as hostile to less-affluent nations and climate change efforts.
Malpass came under fire last year for appearing to cast doubt on the science that says burning fossil fuels causes global warming in remarks at a conference. He later apologized and said he had misspoken, noting that the bank relies on climate science regularly.
Banga, vice chairman of private equity firm General Atlantic, has over 30 years of business experience, having held various positions at Mastercard and on the American Red Cross, Kraft Foods, and Dow Inc boards. He is the first Indian-born candidate for World Bank President.
will help him achieve the World Bank’s objectives
“Ajay is uniquely qualified to lead the World Bank at this critical juncture in history,” Biden said, adding that Banga “has critical experience mobilizing public-private resources to address our time’s most pressing challenges, including climate change.”
In a statement, Treasury Secretary Janet Yellen said Banga’s experience “will help him achieve the World Bank’s objectives of eliminating extreme poverty and expanding shared prosperity while pursuing the changes required to effectively evolve the institution,” including meeting “ambitious goals for climate adaptation and emissions reduction.”
John Kerry, Biden’s climate envoy, said on Twitter that Banga was “the right choice.”
“He can assist in putting in place new policies that help deploy the large sums of money required to reduce global emissions and assist developing and vulnerable countries in adapting, building resilience, and mitigating the impact of greenhouse gases,” Kerry tweeted.
Traditionally, the United States has chosen the World Bank President. The International Monetary Fund’s chief executive officer has traditionally come from Europe. However, critics have called for the agreement to be scrapped and for developing countries to have a stronger voice in the two organizations.
The World Bank has promised an “open, merit-based
The World Bank has promised an “open, merit-based, and transparent selection process” and has stated that nominations will be accepted until March 29.
Eric LeCompte, executive director of the anti-poverty coalition Jubilee USA Network, said the United States was “looking to nominate people that will be supported by the developing world” and was “incredibly relevant” that Banga was born in India. “They want to be able to appoint people with experience and ties to other economies,” said LeCompte.
“I can’t think of a more intense time for someone to start this job,” said Clemence Landers, a policy fellow at the Center for Global Development, a Washington think tank.
The bank is under pressure to broaden its mandate, which will almost certainly require the next president to persuade donor countries to provide more funds.
Critics argue that the bank should do more to assist poor countries in financing projects to combat and prepare for climate change without putting them in debt. Landers also stated that it needs to better address cross-border issues such as pandemic surveillance and broad vaccination programs.
SOURCE – (AP)
