Ajay Banga, former CEO of Mastercard and US citizen, has been elected as the next President of the World Bank, succeeding David Malpass. The 25-member executive board approved Banga’s appointment after several meetings and a formal interview on Monday, having been nominated for the position by US President Joe Biden in February. Banga will be the first non-American to lead the World Bank since the 1940s. He will take up his role on June 2 and serve for five years.
Banga’s appointment comes at a critical time for the World Bank, which is under pressure to increase its lending to address global challenges such as climate change and conflict. Banga’s mandate will focus on overseeing the ongoing comprehensive reform of the World Bank while bringing public and private sectors together to drive necessary changes to development finance. During his tenure as Mastercard’s CEO, Banga aimed to bring 1 billion people and 50 million micro- and small businesses into the digital economy by 2025. The World Bank will lend money to poorer countries on favorable terms, aimed at strengthening their economies and reducing poverty.
Banga, who was born in India, has more than 30 years of business experience and served in various roles at Mastercard, as well as on the boards of Kraft Foods and Dow Inc. He also co-founded The Cyber Readiness Institute and was awarded the Padma Shri Award by the President of India in 2016 and the Global Leadership Award by the Business Council for International Understanding in 2019. He is the first-ever Indian-American and Sikh-American to head either of the two top international financial institutions, the International Monetary Fund and World Bank. Biden congratulated Banga following the announcement, stating that he will be a “transformative leader” for the World Bank.
In an interview, Banga stressed the importance of the World Bank’s role in tackling global challenges, stating that he wants the organization to play its part in helping countries “get back on their feet and rebuild from the pandemic and tackling the challenges of climate change.” Banga has already won shareholders’ approval as a “true change maker” who will help accelerate reforms, according to sources cited by Reuters. As well as leading the World Bank, Banga will also chair the Board of Executive Directors of the International Bank for Reconstruction and Development.
In conclusion, Ajay Banga’s appointment as the next World Bank President marks a significant shift, as he will be the first non-American to lead the organization since the 1940s. He brings a wealth of experience and expertise in global business and the financial sector, having previously served as President and CEO of Mastercard. He will be expected to play a pivotal role in tackling some of the world’s toughest challenges, including climate change and poverty reduction, and help steer the World Bank through a period of comprehensive reform.
