washington: Ajay Banga, an Indian American, on Saturday, took over as the President of the World Bank, making him the first-ever person of colour to head either of the two global financial institutions, the World Bank and the International Monetary Fund (IMF).
Banga, 63, was selected by the World Bank's Executive Directors to serve as its 14th President for a five-year term on May 3.
President Joe Biden stated in February that Banga would be the U.S.'s choice to manage the World Bank. "Please join us in congratulating Ajay Banga on becoming the World Bank Group's next president. In a tweet posted on June 2 that included a photo of Banga entering the bank's headquarters here, the future Bank stated, "We are committed to creating a world free from poverty on a livable planet."
"I send my best wishes to Ajay Banga as he assumes his new position as President of the World Bank today. In a tweet, IMF managing director Kristalina Georgieva stated, "I look forward to continuing the deep partnership between our institutions to do good and help those most in need."
Banga is the first Indian-American to ever hold the position of World Bank president. David Malpass, who announced his resignation in February, is replaced by him. At General Atlantic, Banga recently held the position of vice chairman. Prior to that, he served as president and CEO of Mastercard, a large, international company with close to 24,000 workers.
Under his direction, MasterCard established the Centre for Inclusive Growth, which promotes global financial inclusion and equitable, sustainable economic growth. He presided over the International Chamber of Commerce as its Honorary Chairman from 2020 to 2022.
When BeyondNetZero, General Atlantic's climate-focused fund, was established in 2021, he joined as an advisor. In El Salvador, Guatemala, and Honduras, Banga served as Co-Chair of the Partnership for Central America, a grouping of private organisations that promotes economic opportunities for disadvantaged areas. He formerly served on the boards of Dow Inc., Kraft Foods, and the American Red Cross.
Banga served as the Vice Chair of the Economic Club of New York and is a co-founder of The Cyber Readiness Institute. In addition to the Ellis Island Medal of Honour and the Business Council for International Understanding's Global Leadership Award in 2019, he also received the Foreign Policy Association Medal in 2012, the Padma Shri Award from the President of India in 2016, the Padma Shri Award from the Business Council for International Understanding in 2019, and the Distinguished Friends of Singapore Public Service Star in 2021.
Banga and Treasury Yellen had a meeting at the Treasury Department on June 1. According to a press release, Yellen enthusiastically welcomed Banga's incoming leadership and expressed her strong wish for the Treasury to continue working closely with him to build on the significant advancements made thus far in the evolution of multilateral development banks (MDBs).
In order to maximise the bank's balance sheet, this includes continuing to implement the recommendations of the G20 Capital Adequacy Framework review, improving and increasing the amount of private capital mobilised for our shared global development objectives, and refining the operating model to improve the bank's responsiveness and agility.
Yellen emphasised once more how crucial it is for the World Bank to collaborate more closely with its sister development institutions. Yellen emphasised the importance of aiding the Bank's poorest members as they continue to struggle with a number of problems, such as ongoing global macroeconomic challenges made worse by Russia's conflict in Ukraine.
In a time of significant global challenge and potential, Yellen emphasised that she looks forward to having Banga's seasoned leadership and shown management skills in charge of this crucial multilateral institution.
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