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Ajay Banga Confirmed as World Bank Leader

Ajay Banga, President Biden’s election to head the World Bank and broaden his ambitions to fight climate change, was confirmed by the Executive Committee on Wednesday.

Banga will take office on June 2, succeeding David Malpass, who has been in office for four years after being nominated by former President Donald J. Trump. Raised in India, his former Chief Executive Officer of Mastercard, President-elect brings deep experience in developing countries and financial expertise to a global institution facing a critical moment of transition.

Approval by the bank’s 25-member board of directors was not unanimous. Russia, largely isolated in international forums since its invasion of Ukraine, abstained. In March, Russia suggested it was trying to find an alternative candidate, but in the end Mr. Vanga was the sole candidate.

The President of the World Bank is traditionally an American citizen elected by the United States, and the Managing Director of the International Monetary Fund is elected by the European Union.

Vanga said he had high hopes and expectations about whether banks would change their lending model, ask for more money from shareholders, and how issues such as poverty, global warming and the war in Ukraine should be addressed. You will face an urgent question. He will also face a difficult diplomatic environment trying to satisfy US climate change ambitions while maintaining the Bank’s focus on development. And he will have to navigate a delicate relationship with China, a major shareholder and creditor.

The leadership change comes at a difficult time for the global economy, which has been plagued by pandemics, inflation and war over the past three years. These colliding crises have plunged millions into poverty and reversed decades of development progress.

The bank’s support for Banga, who was nominated by Biden in February, followed an extensive hearing tour that included visits to eight countries and dozens of meetings with government officials around the world.

Mr. Banga’s term of office is five years. His predecessor, Malpass, announced earlier this year that he was stepping down early after criticism that he was not sufficiently committed to reforming the World Bank’s climate policy.

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