Former Mastercard CEO Ajay Banga has been nominated by US President Joe Biden to lead the World Bank, with the expectation that the India-born executive’s ties to the private sector and emerging markets will accelerate the 77-year-old institution’s overhaul to better address climate change.
Thursday’s nomination by Biden of Banga, now 63 years old and a US citizen, virtually guarantees that he would assume a position overseeing billions of dollars in financing to help developing countries combat climate change.
The World Bank (WB) announced on Wednesday that it expects to select a new president by early May to replace David Malpass, who resigned last week after months of controversy sparked by his initial refusal to say whether he accepted the scientific consensus on climate change and pressure from Treasury Secretary Janet Yellen for him to adopt “bolder” reforms.
Biden cited Banga’s decades of experience in establishing multinational firms and public-private partnerships to support responses to climate change and migration, and stated that he has a demonstrated track record of collaborating with global leaders.
“Ajay is uniquely equipped to lead the World Bank at this critical moment in history,” Vice President Joe Biden said in a statement, praising the corporate executive’s Indian background, grasp of the challenges facing poor nations, and ability to marshal private finance to address major issues.
According to Krishnamurthy Subramanian, the former top economic adviser to the Indian government who now serves as India’s executive director at the International Monetary Fund, India was anticipated to support Banga’s candidacy.