WASHINGTON (AN) – Ajay Banga, a proponent of climate action who spent a decade as Mastercard's chief executive before serving as a vice chairman at American growth equity firm General Atlantic, is U.S. President Joe Biden's choice to lead the World Bank.
Biden announced Thursday the United States is nominating Banga for the role of World Bank president because he is a "business leader with extensive experience leading successful organizations in developing countries and forging public-private partnerships to address financial inclusion and climate change."
As the largest shareholder in the 189-nation World Bank, the United States traditionally nominates candidates for a five-year term as president. They are vetted during a months-long confirmation process by the bank’s 24-member executive board.
U.S. Treasury Secretary called Banga “a renowned executive" who has led a global organization with almost 20,000 employees, advocated for diversity and inclusion, and delivered results that align with the bank's aim to eliminate extreme poverty. Some 648 million people, or about 8% of the global population, live in extreme poverty, meaning they subsist on less than US$2.15 per day, according to the bank.
"Ajay Banga understands that those core objectives are deeply intertwined with challenges like meeting ambitious goals for climate adaptation and emissions reduction, preparing for and preventing future pandemics, and mitigating the root causes and consequences of conflict and fragility," Yellen said.
Some activist groups were dubios of the nomination, however, describing Banga as a Wall Street insider who's not exactly known for shaking things up. Biden's pick is "deeply disappointing," said Collin Rees, a U.S. program co-manager for Oil Change International, a Washington-based advocacy group against fossil fuels.
"This moment demands a World Bank leader who will prioritize the urgency of the climate crisis, not another Big Business executive with no experience in development, environmental work, or the public sector," said Rees.
“Banga’s long career at predatory banks and corporations does not inspire confidence that he would transform the World Bank into an institution that can work for people and the planet," he said.
Banga would replace David Malpass, who took over as president during the Trump administration in 2019 and came under fire last September after he declined to say whether he agreed with the scientific consensus that fossil fuel burning is a main driver of global warming. Malpass later clarified his remarks, and in February he said he would resign.
Banga appears more aligned with the Biden administration's emphasis on taking action to deal with an overheating planet and published a call to action for all companies, consumers and communities to collectively address climate change.
Joe Biden has nominated, Ajay Banga, the former chief executive of Mastercard, an Indian American, to be the next president of the World Bank. A smart choice, a matter of pride for Sikhs, and a downer for Hindu supremacists. pic.twitter.com/LeQPTzihlZ
— Ashok Swain (@ashoswai) February 23, 2023
Getting on board with climate action
Biden called Ajay "uniquely equipped" to lead the World Bank at a critical moment in history.
"He has spent more than three decades building and managing successful, global companies that create jobs and bring investment to developing economies, and guiding organizations through periods of fundamental change," the U.S. president said. "He has a proven track record managing people and systems, and partnering with global leaders around the world to deliver results."
Biden said his decision also was based on Banga's "critical experience mobilizing public-private resources to tackle the most urgent challenges of our time, including climate change. Raised in India, Ajay has a unique perspective on the opportunities and challenges facing developing countries and how the World Bank can deliver on its ambitious agenda to reduce poverty and expand prosperity.”
Malpass has been in charge of a global lending institution that is supposed to work to end extreme poverty and build shared prosperity, despite the apparent contradictions between that mission and some of the beliefs expressed by him and his main sponsor, former U.S. President Donald Trump.
Malpass said in announcing his resignation last week that he would step down by the end of the World Bank's fiscal year on June 30, after serving as president of one of the most important international organizations set up to help countries rebuild after World War II for more than four years. He formerly was a senior economic adviser to Trump during his 2016 presidential campaign.
He praised the World Bank's responses to global crises with its mobilization of a record US$440 billion in response to the COVID-19 pandemic, Russia's war in Ukraine, the sharp global economic slowdown, nations' unsustainable debt burdens, climate change, and food, fertilizer, and energy shortages.
“The last four years have been some of the most meaningful of my career," he said. “This is an opportunity for a smooth leadership transition.”
