“RIB” David Malpas… It is now Ajay Banga who heads the World Bank, but the Americans are not giving up their privilege. Because if he was born and raised abroad, it is the United States that chose this candidate. Ajay Banga unsurprisingly became the new president of the World Bank (WB) on Wednesday May 3. The American of Indian origin will have the mission of restoring the image of an institution criticized for its governance and its efforts in the fight against global warming.
His term of office, for a period of five years, will begin on June 2, said the WB in its press release announcing the decision of its board of directors. US President Joe Biden immediately congratulated his favorite, ensuring that he was ready to “support his efforts to transform the World Bank, which remains one of the most essential institutions in the fight against poverty in the world”.
American privilege challenged
Traditionally, the WB is the preserve of the United States, a citizen of which has always led the Bank since its creation, in the wake of the Bretton Woods agreements in 1944. But this hegemony was increasingly called into question, in particular by the major emerging countries, led by Brazil, China, India and Russia, who have been wishing for several years to see their place in international financial institutions strengthened.
Amid rising geopolitical tensions, the US decision to nominate Banga, who grew up in India, was anything but trivial, as the United States tries to get closer to the other Asian giant to counter the Chinese influence in the region.
As soon as he was appointed, Ajay Banga embarked on a world tour, aiming to promote his candidacy and obtain the support of as many countries as possible, in particular emerging and developing countries. He was thus able to count on India, Kenya and even South Africa, which supported his candidacy.
Moving from theory to practice
“We believe that his experience will be very important in helping the WB to strengthen the mobilization of the private sector. During our discussion, he spoke of very interesting practical solutions to strengthen this commitment from the private sector,” added Mr. Bello.
“When we know that we may need funding, it is difficult not to support the candidate who will be elected”, confided to AFP an African minister present in Washington during the spring meetings of the WB and of the International Monetary Fund (IMF), in early April.
In a context where more than sixty poor and emerging countries are on the brink of or hit by a debt crisis, funding from the two institutions is even more essential to avoid a collapse of their national economies.
Especially since the rise in the rates of the main central banks affects the access of these countries to financing, while strongly increasing the costs, further complicating the budgetary situation of these countries.
However, the hardest part now remains to be done for Ajay Banga, who will have to meet expectations on two burning and linked issues: the reform of international financial institutions, starting with the WB, and an increase in the financing of the fight against global warming. climatic.