Indian-origin Ajay Banga confirmed as World Bank's next president

The World Bank on Wednesday confirmed Indian-origin Ajay Banga as its next president. Banga has taken charge of the bank at a pivotal time as the development lender aims to address climate change in better ways.

"The Board looks forward to working with Banga on the World Bank Group Evolution process," wrote the bank in a statement published just after the board voted to approve his leadership which will continue for a five-year term. The US candidate, who was the only nominee for the job,will succeed David Malpass on June 2.

The bank further said that it is looking forward to working with Banga on "all the World Bank Group's ambitions and efforts aimed at tackling the toughest development challenges facing developing countries".

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Malpass has been facing criticism over his stance on climate change. Banga, aged 63, was born into a Sikh family in India and holds US citizenship.

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Previously, Banga headed the payments company Mastercard from 2010 and 2021. He was also part of the boards of Kraft Foods, American Red Cross and Dow Inc.

Speaking to reporters during his candidacy, Banga had said that he wanted to see increased private sector funding to manage financing for global problems.

"There is not enough money without the private sector," he stated, adding that an organisation like the World Bank should establish a system which can share risk and mobilise private funds for achieving its goals.

"These are all tools in the toolkit and I'm going to try and figure it out," he stated.

Last month, US Treasury Secretary Janet Yellen said that she was confident Banga has "the right experience and track record of bringing together governments, the private sector, and non-profits to deliver on our ambitious goals."

Banga will start his role when the world economy is going through a difficult phase with decreased global growth and increasing interest rates.

Banga will be heading the bank shortly after measures were endorsed by member countries to allow it a $50 billion lending boost in the next decade, which was a major objective of outgoing president Malpass.

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The step is part of the development lender's ongoing evolution amid pushes for it to solve global challenges like climate change.

A member of the bank's executive board, which represents 23 African countries, Abdoul Salam Bello said, "We want to make sure that the development agenda is not diluted in the climate agenda."

"Climate is important, but we don't want to have a trade-off where we have an agenda that will be climate versus development," he added.

(With inputs from agencies)

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