Ajay Banga was Joe Biden’s choice; now, the US president wants to support him to transform the World Bank

Ajay Banga has been elected as the next President of the World Bank, succeeding David Malpass. He was nominated for the position by US President Joe Biden in February 2022. The election was conducted by a 25-member executive board of the World Bank. Banga is expected to assume his new role on June 2, 2023, for a five-year term.

The appointment of Banga as President of the World Bank was applauded by both US President Joe Biden and Vice President Kamala Harris. President Biden expressed his admiration for Banga and congratulated him on his new role, stating that he looked forward to supporting Banga's efforts to transform the World Bank to reduce poverty and address global challenges, including climate change.

“I look forward to working with Ajay in his new role and to supporting his efforts to transform the World Bank, which remains one of humanity’s most critical institutions to reduce poverty and expand prosperity around the globe,” Biden said in a statement.

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Vice President Harris also congratulated Mr. Banga on his election, praising him for his past work and highlighting his role in delivering hope and opportunity in Central America.

Why did Biden nominate Banga?

Biden’s nomination of Banga was surprising to many. However, Biden had his reasons.

As per President, Ajay Banga is the perfect candidate to lead the World Bank during this crucial period. With over 30 years of experience in building and operating prosperous international businesses, he has created employment and investment opportunities for developing nations, Biden said.

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Banga has demonstrated his proficiency in managing individuals and systems and collaborating with international leaders to achieve objectives, he added. Furthermore, according to Biden, Banga has overseen organisational transformations, establishing his ability to manage change effectively.

Who is Ajay Banga?

Born, raised and educated in India, Banga became a US citizen in 2007. A finance and development expert, he has previously served on the Boards of the American Red Cross, Kraft Foods and Dow Inc. He was an adviser to General Atlantic's climate-focused fund, BeyondNetZero, and is a co-founder of The Cyber Readiness Institute. In addition, he served as a member of President Obama's Commission on Enhancing National Cybersecurity and the U.S. President's Advisory Committee for Trade Policy and Negotiations.

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Banga has received several awards for his contributions to international development and business, including the Padma Shri Award by the President of India, the Ellis Island Medal of Honor, and the Business Council for International Understanding's Global Leadership Award.

The World Bank Group Evolution process will be a key priority for Banga in his new role as President. The process aims to modernise the institution and make it more responsive to the needs of its clients. Mr. Banga is expected to bring his extensive experience in business and international development to the role and lead the institution in its efforts to reduce poverty and promote sustainable development.