The World Bank has elected Ajay Banga, a former Mastercard CEO, as its new president for a five-year term. Banga, an Indian-born finance and development expert, was nominated for the post by US President Joe Biden in February and was the sole contender to replace David Malpass, the former US Treasury official who is stepping down as World Bank chief. Banga, who has been a US citizen since 2007, will start his new job on June 2.
Biden congratulated Banga on his appointment, saying he would be a "transformative leader" who would help steer the World Bank as it evolves and expands to address global challenges such as climate change, poverty reduction, and pandemic preparedness. Treasury Secretary Janet Yellen also welcomed the appointment, saying that Banga brought the "right leadership and management skills" to the job and would play a critical role in pushing forward with additional reforms.
The World Bank, which has traditionally been led by an American since its founding after World War II, has been working to increase its lending to help developing countries address overlapping global challenges such as climate change, conflict, and future pandemics. Banga's appointment comes at a critical moment marked by emerging debt distress in lower- and middle-income countries and ongoing problems in food and energy markets as a result of Russia’s war in Ukraine.
However, some critics argue that the bank needs serious reform to tackle the widening gap between rich and poor, which will require huge new public investments and "guardrails around private finance that has run riot for too long." Nonetheless, the World Bank's board of governors looks forward to working with Banga on the organization's evolution process and all efforts aimed at tackling the toughest development challenges facing developing countries.