US President Joe Biden on Thursday nominated Indian-American business executive Ajay Banga to become World Bank president, praising his expertise in building public-private partnerships to address financial inclusion and climate change.
The World Bank said on Wednesday that it expects to select a new president in early May to replace David Malpass, who announced his resignation last week.
Banga’s US nomination all but ensures that he will assume a post overseeing billions of dollars in funding as the institution embarks on a major series of reforms to better respond to climate change and other pressing challenges facing developing countries.
“Ajay is uniquely equipped to lead the World Bank at this critical moment in history,” Biden said in a statement. “He has spent more than three decades building and managing successful global companies that create jobs and attract investment to developing economies, guiding organizations through periods of fundamental change.”
Biden also highlighted Banga’s experience in mobilizing public and private resources to address urgent challenges like climate change in a variety of organizations.
Historically, the bank has been led by someone from the United States, its largest shareholder, while a European leads the International Monetary Fund (IMF), but developing countries and emerging markets have pushed to expand those options.
Banga’s nomination is the first to be made public, but applications from other member countries will be accepted until March 29. Germany, another major shareholder, said this week the job should go to a woman, as the bank has never been run by one in its 77-year history.
Raised in India but now a US citizen, Banga is currently Vice President of General Atlantic, a US private equity firm. He retired in December 2021 after 12 years at the helm of Mastercard Inc MA.N, where he set a goal of incorporating 1 billion people and 50 million micro and small businesses into the digital economy by 2025.
He also serves as co-chair of the Partnership for Central America, where he worked closely with Vice President Kamala Harris to mobilize public, private, and nonprofit resources for northern Central America.
Treasury Secretary Janet Yellen said Banga’s experience at Mastercard and his work deploying private capital on climate solutions will help him achieve the World Bank’s dual goals of eliminating extreme poverty and expanding shared prosperity.
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