Indian origin Ajay Banga set to be next President of World Bank

Contact Counsellor

Last Updated06/05/2023

Indian origin Ajay Banga was confirmed as the next President of World Bank.
The World Bank’s 25-member executive board last night elected the former Mastercard CEO to a five-year term as president.
The Indian-born finance and development expert was charged with revamping the lender to tackle climate change and other global crises.

It is an international financial institution that provides loans and grants to the governments of low and middle-income/developing countries for the purpose of pursuing capital projects.
It was established along with the IMF at the 1944 Bretton Woods Conference.
The WB is the collective name for the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), two of five international organisations owned by the WB Group.
The WB Group, which is the parent organisation of the WB, includes -

IBRD: It provides loans, credits and grants.
IDA: It provides low or no-interest loans to low-income countries.
International Finance Corporation (IFC):It provides investment, advice and asset management to private companies and governments.
Multilateral Guarantee Agency (MIGA): It insures lenders and investors against political risk such as war.
International Centre for the Settlement of Investment Disputes (ICSID): It settles investment-disputes between investors and countries.

These all serve the dual objectives of the WB Group, which are to end extreme poverty by 2030 and increase shared prosperity for the bottom 40% of the population worldwide.
As of 2022, the WB is run by a President and 25 executive directors.
IBRD and IDA have 189 and 174 member countries, respectively, and the US, Japan, China, Germany and the U.K. have the largest voting power.

The President of the WB, who is the President of the entire WB Group, is responsible for chairing meetings of the boards of directors and for overall management of the Bank.
Traditionally, the President of the Bank has always been a U.S. citizen nominated by the US, the largest shareholder in the bank.
The nominee is subject to confirmation by the board of executive directors to serve a five-year, renewable term.
The boards of directors consist of the WB Group President and 25 executive directors.
The President is the presiding officer and ordinarily has no vote except to break a tie.
The executive directors as individuals cannot exercise any power or commit or represent the Bank unless the boards specifically authorised them to do so.