World Bank CEO Nominated by Biden

Following the announcement by the World Bank's current head David Malpass to step down early, US President Joe Biden stated on Thursday that Washington is selecting former Mastercard Chief Executive Ajay Banga to lead the organization.

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The development lender has just begun taking nominations for candidates, and the bank has stated that women candidates would be "highly" encouraged. The nomination period is scheduled to go through March 29.

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While the head of the International Monetary Fund is normally European, the president of the World Bank is typically American.

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Banga, an Indian-American who is currently vice chairman of the equity firm General Atlantic, is 63 years old.

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He formerly served as Mastercard's CEO.

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According to a statement from Biden, Banga has "important expertise leveraging public-private resources to solve the most serious challenges of our day, including climate change."

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The current World Bank President, David Malpass, said last week that he will leave the position almost a year early. Malpass was appointed for the position by Biden's predecessor, Donald Trump, in 2019.

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Originally, his term would have expired in 2024.

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The nomination of Banga comes at a time when development bankers are being urged to restructure and better tackle global challenges like environmental concerns.

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Janet Yellen, the US Treasury Secretary, previously stated that the fundamental lending models, in which nations borrow to undertake specific investments addressing developmental challenges, are "insufficient to meet the moment."

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The largest shareholder in the World Bank is the United States.

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Senior US government official: "Ajay has made addressing climate change and raising private financing to help power the green transformation a priority at Mastercard and General Atlantic."

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The official stated, "These are the experiences and priorities that will direct and drive his work in the years to come at the World Bank."

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Yellen made a second statement on Thursday in which she praised Biden's choice.

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The World Bank needs a leader at a crucial time in its history, and Banga "has the requisite leadership and management abilities, experience living and working in emerging nations, and financial knowledge," according to Yellen.

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She continued by saying that his track record of establishing alliances across the public, private, and nonprofit sectors will be useful to him in "mobilizing the private capital and pressing for the reforms needed to accomplish our common aspirations."

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When asked about the World Bank's support of female candidates, a US official responded that Banga, who was born, bred, and spent the first part of his career in India, a developing market, had a "personal conviction and strong track record" in fostering diversity in his work.