Biden Nominates Ajay Banga to Lead World Bank
US Pres. Biden on Thursday nominated former MasterCard CEO Ajay Banga to head the World Bank, following the announcement of David Malpass' intention to resign last week....
- US Pres. Biden on Thursday nominated former MasterCard CEO Ajay Banga to head the World Bank, following the announcement of David Malpass' intention to resign last week.1
- The Bank stated Wednesday that it planned to interview a shortlist of up to three candidates, strongly encouraging female nominations. The bank aims to name a new leader by early May but it's unclear if other countries will put forward more candidates.2
- Banga currently serves as the vice chairman of the US private equity firm General Atlantic, with the Biden admin. describing him as a 'global leader' in technology, data, financial services, innovation, and inclusion, and 'uniquely equipped' to lead the World Bank.3
- As the largest shareholder in the World Bank, the US's nomination typically becomes its leader, however, the bank's board must officially approve the decision. The US Dept. of Treasury intends to push the bank more directly toward addressing climate change, though not at the expense of its traditional goal of fighting poverty.4
- 63-year-old Banga, the CEO of MasterCard from 2010-2021, has been described by US climate envoy John Kerry as the 'right choice' due to his climate change credentials. Outgoing Malpass has faced criticism after refusing to confirm whether he accepts the scientific consensus on climate change.5
- Biden's nomination comes as Chinese entities have surpassed Western organizations like the World Bank as the number one global creditor to developing countries, with PRC officials calling on international groups to take write-downs on the loans they've extended.6
Sources: 1Reuters, 2BBC News, 3Forbes, 4Wall Street Journal, 5CNN and 6Atlantic council.
- Pro-establishment narrative, as provided by The times of india. The nomination of Banga is a pragmatic choice that balances environmental action and the economic necessity for the world to grow out of poverty. The former head of the second-largest payment company, Banga has extensive economic experience in the private sector which many have great confidence will transition well into the World Bank.
- Establishment-critical narrative, as provided by Revolving door project. The Biden administration should withdraw this nomination. Neither MasterCard nor any of Banga's previous roles promote shared prosperity but rather contributed to growing global inequality. While Malpass needed to go, this nomination is not nearly adequate enough and simply perpetuates systemic problems.