Banga was nominated for the post by US President Joe Biden in late February and was the sole contender for the position. The decision was taken by 24 of the board’s members, with Russia abstaining, rather than through the usual consensus-based process.
Banga, who was born in India and became a US citizen in 2007, is an experienced finance & development expert who is expected to lead the World Bank in tackling global challenges such as climate change.
He has met with officials from 96 governments since his nomination, and recently completed a three-week world tour to meet with government officials, business leaders, and civil society groups.
The World Bank, which loans out hundreds of billions of dollars to developing countries, is working to increase its lending to help countries address climate change and other global crises. Banga’s appointment is expected to accelerate reforms at the bank, with one source calling him a “true change maker.”
US Treasury Secretary Janet Yellen has said that attracting more private capital for development goals will be a key area of focus for Banga. Yellen and her top aides began promoting Banga’s candidacy as soon as it was announced, according to sources.
Banga’s appointment marks a departure from tradition at the World Bank, which has been led by an American since its founding, while the International Monetary Fund has been led by a European.
With his wealth of experience in finance and development, Banga is expected to bring a fresh perspective to the role and help the World Bank address the toughest development challenges facing developing countries.
