Biden nominates Indian-American businessman Ajay Banga to lead World Bank

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Biden nominates Indian-American businessman Ajay Banga to lead World Bank

The President of the United States, Joe Biden, has named Indian-American businessman, Ajay Banga, to lead the World Bank, following the resignation of its current chief.

According to BBC, the development was instituted as the US called for reforms at the bank, including more programmes to address climate change.

Banga who was raised in India led credit card giant Mastercard for more than ten years. He retired from Mastercard in 2021. He is currently a vice chairman at private equity firm General Atlantic.

US officials noted Banga has the experience to help the bank work with the private sector toward achieving its goals. However, the bank’s board has the final decision to officially appoint its next president.

The current president of the bank, David Malpass, who was nominated by former US President Donald Trump, announced his plans to leave the organisation earlier this month.

He had been criticised by environmental advocates for being slow to direct the bank’s resources to address climate change.

Meanwhile, the bank specified on Wednesday, that it planned to interview a shortlist of up to three candidates and targeted to name a new leader by early May.

The US, the World Bank’s biggest shareholder, has conventionally been in control of choosing the person to lead the institution, which lends billions of dollars to countries each year.

In a statement, Treasury Secretary Janet Yellen said she wanted to see the World Bank serve as a “force multiplier for good by setting the right agenda and catalyzing action from across the spectrum.”

She said Banga was “uniquely” equipped to take on that charge, pointing to his track record initiating partnerships between governments, companies and non-profits.