On Wednesday, the World Bank’s board of governors elected former Mastercard CEO Ajay Banga as president for a five-year term. Banga, an Indian-born finance and development expert, will revamp the lender to tackle climate change and other global crises. US President Joe Biden nominated Banga for the post in late February and was the sole contender to replace departing World Bank chief David Malpass. Banga will start his new job on June 2.
World Bank board members interviewed Banga for four hours on Monday before electing him. Malpass’ last day at the bank will be June 1. 24 of the board’s members voted in the election, with Russia abstaining, instead of using the usual consensus-based process, according to a source familiar with the process. Biden congratulated Banga on his “resounding approval” to run the World Bank and described it as “one of humanity’s most critical institutions to reduce poverty and expand prosperity around the globe.” He said that Banga “will be a transformative leader” and help steer the institution as it evolves to address global challenges affecting its core poverty reduction mission, including climate change. Treasury Secretary Janet Yellen said that Banga brought the “right leadership and management skills” to the job and would be critical in pushing forward with additional reforms. She said he would forge partnerships between the public and private sectors and nonprofit groups.
