New Delhi, February 24, 2023: Ajay Banga’s nomination for World Bank Presidency by US President Joe Biden has come as a surprise to many experts. Simultaneuosly, it has led to big celebrations among development sector stakeholders and climate change advocates!
So, what is the great deal about this announcement? The change in leadership of World Bank happens every 5 years. Also, it's just a nomination and not the announcement for the appointment World Bank for presidency. So, why is so much of celebration around this announcement by the US President?
Experts say, it's because the announcement carries lots of hope for pressing development issues ranging from ‘poverty alleviation’ concerns to global challenges like ‘climate change’. His alignment to social and environmental causes and past credential of taking meaningful initiatives towards these issues makes him the perfect choice for pocimakers and other stakeholders.
US Treasury Secretary Janet L. Yellen, who is in India for a gathering of finance ministers of the Group of 20, said that Mr. Banga’s background would make him an important partner at the World Bank for reducing poverty and combating climate change.
US President Biden lauds Bang’s climate credentials
While announcing the nomination for Ajay Banga, US President Joe Biden said that Banga has “critical experience mobilizing public-private resources to tackle the most urgent challenges of our time, including climate change.”
He added that “Ajay has a unique perspective on the opportunities and challenges facing developing countries and how the World Bank can deliver on its ambitious agenda to reduce poverty and expand prosperity.”
US Vice President Kamala Harris also, in her congratulatory message, said that “Ajay Banga will be a transformative World Bank President as the institution works to deliver on its core development goals and address pressing global challenges, including climate change.”
Special Presidential Envoy for Climate John Kerry, in his twitter message, said that “Ajay Banga is the right choice to take on the responsibilities of @WorldBank at this critical moment. The climate crisis requires new thinking and creative vision regarding finance, so that we can meet the challenge of the energy transition.”
The World Bank, a group of 187 nations, lends money to developing countries to help reduce poverty.
What media houses say?
The prestigious media houses have also referred to Banga’s past work which is indicative to his concerns and solution-driven approach towards the environment challenges.
News agency Reuters opined that Banga's nomination by the United States all but assures he will assume a job that oversees billions of dollars of funding as the institution embarks on a major series of reforms to better respond to climate change and other pressing challenges facing developing countries.
The agency detailed out Banga’s credentials as a socially and environmentally conscious business leader. “Raised in India but now a U.S. citizen, Banga, 63, is vice chair of General Atlantic, a U.S. private equity firm that has invested over $800 million in EV charging solutions, solar power and sustainable farming, and serves as honorary chair of the International Chamber of Commerce,” it noted.
According to The New York Times Mr. Banga has sought to carve out a public stance signaling his concern for climate change, including at Mastercard. In 2020, under his watch, the company announced the creation of the Priceless Planet Coalition, a group of about 100 firms that make corporate investments to preserve the environment.
“No matter who you are or what you do, climate change affects you. But, it has the biggest negative impact on those who are socially and economically vulnerable,” Mr. Banga said at the time.
Mr. Banga had described the challenge of climate change, which he called “humanity versus nature,” as a matter of trade-offs that has for years stumped politicians.
According to the US media house, a central part of the next World Bank president’s job will be re-engineering the institution to make it a more pivotal player in a coordinated effort by Western nations to address global warming, despite some developing countries’ concerns that the mission could overtake the bank’s poverty reduction goals.
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