Former Mastercard CEO, Ajay Banga becomes the first ever Indian American become the President of World Bank; he will succeed David Malpass on June 2
Ajay Banga has made history by becoming the first Indian American to lead the World Bank. The World Bank’s Executive Directors appointed Ajay Banga as President of the World Bank for a five-year term commencing June 2, 2023. President Joe Biden announced in February that the United States would nominate Banga, to lead the World Bank because he is “well equipped” to do so at “this critical moment in history.” After David Malpass’s tenure as World Bank President comes to an end, Banga will take over in that role on June 2, 2023. With this appointment, Banga becomes the first Indian American and Sikh-American to lead either the International Monetary Fund or the World Bank.
Banga’s role as President of the World Bank is pivotal not just because he is the first Indian American nominee for the most important global institution but also because it is imperative for the bank to mobilise private market financing. Banga is the current Vice Chairman of General Atlantic.
Selection
According to a World Bank press release, for the selection of Banga, the executive directors of the bank followed the selection procedure agreed upon by shareholders in 2011. “The process included an open, merit-based, and transparent nomination where any national of the Bank’s membership could be proposed by any Executive Director or Governor through an Executive Director. This was then followed by thorough due diligence and a comprehensive interview of Mr. Banga by the Executive Directors,” the release said.
Career
Banga has been a citizen of the United States since 2007. In his role as Co-Chair for Central America, he has generated public, private, and non-profit resources for Northern Central America in close collaboration with US Vice President Kamal Harris. He formerly served as President and CEO of Mastercard. Under Banga’s leadership, Mastercard reportedly scaled new heights, the company launched the Centre for Inclusive Growth, which helps progress economic growth that is both equitable, sustainable, and financial inclusive around the world.
Accolades
The President of India presented him with the Padma Shri Award in 2016. He was awarded the Ellis Island Medal of Honor and the Business Council for International Understanding’s Global Leadership Award in 2019.
Expectations
With global GDP faltering and interest rates rising in many major economies, Banga will take over the helm at a challenging time for the global economy. Poverty and the climate disaster are two of the most important concerns confronting the World Bank right now. Faced with these two global crises, top experts are optimistic that Banga will successfully meet these challenges.
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