The United States government has nominated Ajay Banga, a former chief executive of Mastercard, to be the next president of the World Bank.
The nomination makes Banga, 63, almost certain to become the next president of the group that has 187 nations as members. The U.S. is the largest shareholder.
– A key point to note
The U.S. historically nominates the head of the 77-year-old institution while Europe nominates the managing director of the International Monetary Fund. There have been increased calls for the positions go to other nations.
Oxfam International criticized the nomination, saying the World Bank is “not a U.S. bank, a commercial bank, or a private equity firm”.
Germany, another major shareholder, said the job should go to a woman since the bank has never been headed by a woman. It is yet unclear if other countries will put forward nominees after the U.S. nomination.
– Why this matters
Africa has tried but failed to pick the position. In 2012, the World Bank had to choose between former Nigerian finance minister Ngozi Okonjo-Iweala and Jim Yong Kim, the US’ nomination, but settled for the later.
“It is now generally agreed that Africa is the new frontier of development. Smart politics on the part of the top industrialised countries demands that they bring the continent to the table through an assimilation of its highly skilled technocrats on the global stage,” Wole Olaoye, a Nigerian writer, said in a piece on Sunday.
He argued the president of the African Development Bank was a good candidate for the post.
– Learn More
The current World Bank president, David Malpass, who was nominated by former U.S. president Donald Trump, announced last week he was leaving with less than a year left in his five-year term.
Critics had questioned his commitment to fighting climate change, with the former U.S. Vice President Al Gore called Malpass a “climate denier” after he refused to agree with scientific conclusions on man-made impacts on climate change.
Activists have since then urged President Biden to nominate a leader with a stronger background in the subject. In a statement Thursday, Biden said Banga had a “unique perspective” to address the challenges facing developing countries.
“He also has critical experience mobilizing public-private resources to tackle the most urgent challenges of our time, including climate change,” Biden said.
The World Bank’s board will take the final decision on who leads the body. It says it expects to select a new president by early May.
Banga, an immigrant who was raised in India and moved to the U.S. in 2000, is vice chair of General Atlantic, a U.S. private equity firm.
Reuters quoted American officials as saying the firm has invested over $800 million in electric vehicle charging solutions, solar power and sustainable farming.
He retired in December 2021 after 12 years at the helm of Mastercard.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.