New World Bank President: Bangga, Former Mastercard CEO

by Jo Youjin

Published 24 Feb.2023 10:22(KST)

[Asia Economy Reporter Yujin Cho] On the 23rd, U.S. President Joe Biden nominated Ajay Banga, former Mastercard CEO, as the candidate for the World Bank President. The new president will be finalized by the World Bank Board of Directors after a one-month candidate verification process. The United States, holding the largest share of 15.85% in the World Bank, has continuously appointed candidates recommended by the U.S. as the World Bank President since its establishment.

President Biden stated in a press release, "Former CEO Banga has a unique career to lead the World Bank at this historically significant moment." He added, "He has proven abilities to manage people and systems and to partner with global leaders from various countries to deliver results," and "He also possesses key capabilities to mobilize public and private resources to address the most urgent challenges of our time, including climate change."

Ajay Banga, an Indian-American, currently serves as Vice Chairman of the private equity firm General Atlantic. The New York Times (NYT) evaluated, "Former CEO Banga has experience leading vast organizations and a deep understanding of the digital economy," and "Having grown up in India, he also has a distinguished record related to solving problems faced by developing countries."

Earlier, on the 15th, current President David Malpass announced his intention to resign early, working only until the end of June. A former U.S. Treasury Deputy Secretary, he was appointed in 2019 during the Donald Trump administration and faced resignation pressure from the Biden administration last year after effectively denying the climate change impact of fossil fuels.

Al Gore, former U.S. Vice President and 2007 Nobel Peace Prize laureate, commented on this nomination, saying, "Those who have worked with former CEO Banga know he is an exemplary leader," and "He will bring new leadership to the World Bank in addressing the climate crisis challenge."

The NYT reported that no candidates have been nominated from countries other than the United States. The World Bank, established after World War II to support reconstruction funds for various countries, has its president effectively appointed by the United States, which holds the largest share. The term of the World Bank President is five years, with the possibility of reappointment.