After a 4 year career at the helm of the World Bank starting April 2019, David Malpass will be exiting the Washington based lender as head and passing on the mantle to Ajay Banga. Malpass announced that he would be stepping down earlier in February 2023 after criticism over his stance over climate change. Banga will be the 14th President of the World Bank.
According to a press release by the lender on 03 May Wednesday, Banga was by a 25 member board of executive directors voted successor for the top job.
“The Board looks forward to working with Mr. Banga on the World Bank Group Evolution process,” the development lender wrote in a statement published shortly after executives voted to approve his leadership for a five-year term.
Banga comes at a time when the world grapples with climate change and rising debt with emerging and frontier markets in distressed positions. Poverty levels have widened, effects of the Russo – Ukraine war continue to pressure soft commodity prices with massive global ambiguity. With the rising tension between China and the US amidst geopolitical and trade war tensions, all eyes will be on Banga.
Many feel that Ajay Banga may what a frail world needs right now. The Indian born finance and development expert once served as Chief Executive of Mastercard. In late February 2023 US President Joe Biden nominated Banga. The approval was not unanimous as Russia abstained of the 25 board of executive directors.
Traditionally, World Bank Presidents are US citizens while those of the International Monetary Fund are chosen by the European Union.
Despite stepping down with controversy around his stance on climate change, Malpass will still be remembered for his ‘warrior’ mentality towards fighting for frontier markets at a time they needed support during debt restructure decisions. At the last World Bank and Spring meetings Malpass was vocal in assisting frontier nations such as Zambia with fiscal reconstruction efforts.
The Kwacha Arbitrageur
