Ajay Banga, U.S. President Joe Biden’s nominee to head the World Bank, is on a ‘listening tour’ of Africa to drum up support for his nomination. Banga kicked off his visit to the continent in Ivory Coast and Kenya.
As a veteran of the private sector (he was an executive at Citigroup before heading Mastercard), Banga is an unlikely fit for a job usually occupied by development finance experts. While he is officially a nominee and is campaigning for support, the fact that he was appointed by Biden basically makes him a shoo-in.
Banga would helm the World Bank at a uniquely perilous moment as it pivots from poverty alleviation to climate change mitigation and adaptation.
Some African governments aren’t happy about this shift. South African Finance Minister Enoch Godongwana griped: “[They should be] careful about shifting the mandate of the World Bank so that whatever additional mandate is being taken does not avert its focus on poverty reduction.”
But getting the buy-in from African governments is only one of Banga’s problems. Far larger is the WB and International Monetary Fund’s ongoing standoff with China.
Beijing now seems set on trying to push the Bretton Woods Institutions to accept losses as part of debt restructuring for bankrupt countries like Sri Lanka, a move that would overturn years-long conventions and change the development finance landscape.
WHY IS THIS IMPORTANT? Banga seems set to oversee massive changes at the World Bank, as the creaking institution already faces a drumbeat of complaints about slow payouts and its frequently problematic climate actions. His success or failure will likely be affected by geopolitical tensions between the U.S. and China.
SUGGESTED READING:
- Semafor: World Bank nominee Ajay Banga prompts mixed response from Africa watchers by Yinka Adegoke
- Australian Strategic Policy Institute: Imperatives for the World Bank’s next president by Ngaire Woods
