The World Bank lends money to poor countries on favorable terms with the aim of strengthening their economy and reducing poverty there. The organization is supported by 189 countries worldwide.
As expected, former Mastercard CEO Ajay Banga has been named the new President of the World Bank. The bank announced this on Wednesday in Washington. He succeeds David Malpass, who surprisingly announced his resignation in February. Banga’s term of office is five years. He was the only candidate for the post and is scheduled to take office on June 2.
US President Joe Biden nominated Banga in February as a candidate for the post of chief of the World Bank. Traditionally, the USA provides the head of the institution. The 63-year-old Indian-American manager was most recently deputy chairman at financial investor General Atlantic. His first challenge in the new job is likely to be the reform of the World Bank, which the institution is currently pushing ahead with.
Biden congratulated Banga. He will help steer the World Bank, which is currently evolving to address global challenges, the Democrat said. In this context, the new President will also focus on climate change. Banga will also play an important role in bringing together the public and private sectors to drive the necessary “fundamental changes in financing for development”.
Malpass’s resignation comes about a year before the end of the World Bank head’s term. The economist proposed by then US President Donald Trump was heavily criticized for a statement on climate change. Last September, Malpass dodged questions about whether burning fossil fuels contributes to global warming. Instead, the head of the World Bank said: “I’m not a scientist.” Malpass later appealed for damage control and said he regretted his choice of words.