Banga will take of David Malpass and hold office from 2nd June
On Wednesday, Ajay Banga, an India-American and former Mastercard CEO, was named the World Bank's 14th president. His term, which will last for the next 5 years starts on June 2, taking over from David Malpass who is stepping down early amid criticism over his stance on climate change. Following a selection process agreed upon by shareholders in 2011, states a 25-member executive board confirmed Banga for the position.
The World Bank has been led by Americans since its inception at the end of WWII. According to Reuters, Banga has impressed shareholders in recent weeks as a "true change maker" who will help accelerate reforms at the global development bank, which is under pressure to increase lending to developing countries to help them address global challenges such as climate change and conflict.
"The Board looks forward to working with Mr. Banga on the World Bank Group Evolution process," the development bank said in a statement issued immediately after executives voted to extend his leadership for another five years.
The bank also stated that it was excited to collaborate with Banga on "all of the World Bank Group's ambitions and efforts aimed at tackling the toughest development challenges facing developing countries."
A US resident has traditionally presided over the Washington-based development lender, whereas a European has presided over the International Monetary Fund.
Despite growing public concern about America's continued hold on the bank's presidency from developing and emerging economies, the trend continues with Banga, 63, who was born into a Sikh family in India and is a naturalised US citizen.
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