The 25-member executive board of the World Bank has confirmed that Ajay Banga, former CEO of Mastercard, will take over as the first Asian president of the World Bank from David Malpass. The tenure of Ajay Banga will start on June 2 and will last for a period of 5 years.
Key points about the News
- Ajay Banga, an Indian-born American executive, will take over as the 14th President of the World Bank on June 2, for a period of five years.
- His nomination is considered a “face of change” for the global development lender.
- Banga’s tenure as the World Bank president will be crucial in shaping the organization’s efforts toward climate change.
- He has a strong belief in the need to tackle climate change urgently and plans to involve private players to address the issue.
- David Malpass, his predecessor, stepped down from the presidency before completing his tenure, due to his controversial stance on climate change but will continue in office till June 1.
More about the new World Bank President Ajay Banga
- Ajay Banga was born in Pune, Maharashtra into a Sikh family.
- His father, Lt. Gen. Harbhajan Singh Banga (Retired), had a challenging job that required frequent travel across India.
- He became a US citizen in 2007 after working and living in the United States for many years.
- He began his career at Nestle India’s subsidiary in the early 1980s.
- From 2010 to 2021, he led the payment company Mastercard for more than a decade.
- He has served on the boards of several prominent companies, including the American Red Cross, Kraft Foods, and Dow Inc.
- He was also a vice chairman at General Atlantic.
Ajay Banga’s Selection
- Ajay Banga was selected as the only candidate to become the new president of the World Bank, succeeding David Malpass.
- He underwent a four-hour interview with the World Bank board members and received the board’s final approval after several meetings in recent weeks.
- The decision was made through a vote by 24 board members, with Russia abstaining, which is different from the usual consensus-based process.
- Ajay Banga has extensive experience in finance and development and will play a crucial role in the World Bank’s efforts to deal with climate change.
- He aims to bring in private investment to tackle climate change and believes that poverty alleviation and managing nature are interlinked challenges.
About World Bank
- The World Bank is an international financial institution that provides loans and grants to support development programs in developing countries.
- Its primary goal is to reduce poverty and support economic development.
- The World Bank was established in 1944 and is headquartered in Washington, D.C., USA.
- It was created as part of the Bretton Woods Agreement, a series of agreements among the world’s leading economies aimed at rebuilding the global economic system after the Second World War.
- The organization is made up of two main bodies: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
- The World Bank also provides technical assistance and advice to member countries to help them implement development projects.
- Current President – David Malpass (9th April 2019 – 1st June 2023)
Significance of World Bank
The World Bank is a vital international financial institution that provides loans, grants, and other assistance to countries around the world to support economic development and reduce poverty.
Here are some of the key roles and significance of the World Bank:
- Providing financial and technical assistance: The World Bank provides financial and technical assistance to countries for development projects, including infrastructure, health, education, and poverty reduction programs.
- Reducing poverty: One of the primary goals of the World Bank is to reduce poverty in developing countries by providing loans and grants to support economic growth, create jobs, and improve living standards.
- Supporting economic growth: The World Bank provides financing and technical assistance to countries to help them improve their economies by investing in infrastructure, promoting private sector growth, and enhancing human capital.
- Advancing sustainable development: The World Bank aims to promote sustainable development by providing assistance for environmentally sustainable projects and helping countries transition to a low-carbon economy.
- Addressing global challenges: The World Bank also plays a crucial role in addressing global challenges such as climate change, food security, and pandemic response, by supporting programs and policies that promote sustainability and resilience.
Overall, the World Bank is a crucial institution for supporting economic development and reducing poverty in the world’s poorest countries. Its work is essential to achieving global development goals and promoting a more sustainable and equitable future for all.
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