28/02/2023
WASHINGTON: Ajay Banga, U.S. President Joe Biden's pick to run the World Bank, will face a tough slate of issues around the institution's finances and capital structure from the get-go, thorny problems he must address as he reshapes the bank into a force for combating climate change on top of its traditional role as a poverty fighter.
Biden and his team have ambitious plans for overhauling the 77-year-old World Bank, which critics have said under its outgoing chief David Malpass was too timid in financing climate initiatives and still funds substantial fossil fuel projects across the developing world.
The key to it all, of course, is money, and as organized and funded now, the World Bank would be stretched to meet those goals.
Banga's nomination, announced on Thursday, won a round of rapid endorsements as top finance leaders met on Friday in India, a sign his ascendance by early May - or possibly sooner - is all but assured, though other member countries can also submit nominations through March 29 before the World Bank's governors choose the president.
Even before he takes office, the former
Mastercard Inc chief is expected to start working his numerous constituencies as early
as April when top
officials meet in Washington at the World Bank and International Monetary Fund's spring meetings.
Member countries are expected to approve initial moves to stretch the bank's balance sheet to free up more funds for climate projects, pandemic preparedness and other priorities.
If confirmed, he will jump into high-profile talks in June hosted by French President Emmanuel Macron and Barbados Prime Minister Mia Mottley focused
on developing a new global financial pact
to reform how rich
countries finance poor countries grappling
with climate-driven damages.