President Joe Biden announced the nomination of former Mastercard Chief Executive Officer (CEO) Ajay Banga to be the head of the World Bank on Thursday, praising his crucial expertise in global issues including climate change.The information was released just days after David Robert Malpass, a Donald Trump nominee, declared his intention to leave his position as director of the 189-nation body tasked with reducing poverty. In April 2024, his five-year term was set to end.Addressing the effects of climate change at the international bank is a priority for the United States. Prominent environmentalists have also urged the Joe Biden administration to use David Malpass early departure as an opportunity to restructure the significant financial organisation, which has come under fire for being hostile to programmes to tackle climate change and less developed nations.David Robert Malpass received fire last year for appearing to question the research proving that burning fossil fuels causes global warming in remarks made at a conference. However, he expressed regret and stated he had made a mistake, stressing that the bank frequently uses climate science.With more than 30 years of commercial experience, Banga, a Vice Chairman at the private equity company General Atlantic, has held a variety of positions at Mastercard and sat on the boards of the American Red Cross, Kraft Foods, and Dow Inc. He is the first Indian-born candidate for president of the World Bank.Biden mentioned in a statement, that “Ajay is uniquely equipped to lead the World Bank at this critical moment in history, he has critical experience mobilizing public-private resources to tackle the most urgent challenges of our time, including climate change.”Treasury Secretary Janet Yellen also gave a statement that Bangas experience “will help him achieve the World Banks objectives of eliminating extreme poverty and expanding shared prosperity while pursuing the changes needed to effectively evolve the institution,” which include meeting “ambitious goals for climate adaptation and emissions reduction”.The World Bank president is typically chosen by the United States. The International Monetary Funds chief executive officer generally hails from Europe. Yet, some have demanded that this arrangement end and that poor nations be given more voice in the two organisations.Know more about Ajay BangaAjaypal Singh Banga is an Indian-American business leader who was born on November 10, 1959. He is currently General Atlantics Vice Chairman. From July 2010 to December 31, 2020, he held the positions of President and Chief Executive Officer (CEO) and Executive Chairman, respectively, of Mastercard. On December 31, 2021, he retired from this post and joined General Atlantic. His 2020 compensation was 27.77 million dollars. Together with US Vice President Kamala Harris, he co-chairs the public-private Partnership for Central America and the Dutch investment holding company Exor.Current head of World BankDavid Robert Malpass, an American economist and former government official, has been president of the World Bank Group since 2019. Malpass previously worked for Donald Trump as Under Secretary of the Treasury for Foreign Affairs, Ronald Reagan as Deputy Assistant Treasury Secretary, and George HW Bush as Deputy Assistant Secretary of State. For the six years before to Bear Stearns collapse, he was the companys chief economist.US President Donald Trump declared in January 2019, that Jim Yong would be stepping down three years before the end of his five-year term in 2022, will be replaced by David Robert Malpass, who was named by President Trump as the choice for President of the World Bank in February 2019. On April 5, 2019, the executive board unanimously confirmed Malpass, and he started serving on April 9.How is the World Banks head chosenTraditionally, the United States chooses World Bank presidents, and its choices have invariably been American bankers or economists. Candidates should meet the following criteria:The ability to articulate a clear vision of the World Bank Groups development mission, a firm commitment to and appreciation for multilateral cooperation, effective and diplomatic communication skills, impartiality and objectivity in the performance of the duties of the position, and a track record of leadership experience in managing large organisations with international exposure are all required.
