Ajit Karn
The Credentials of Ajay Banga Will Allow Him to Pass the World Bank’s Evaluation Criteria
Janet Yellen, the secretary of the US Treasury, stated on Saturday that she believes the credentials of the US nominee to lead the World Bank, former MasterCard CEO Ajay Banga, will withstand any criticism of the selection procedure.
In an interview, Yellen expressed her support for the longstanding practise of the United States selecting the World Bank’s leader and Europe selecting the International Monetary Fund’s head.
She stated, however, that the privilege comes with the obligation to “nominate the most qualified candidate” for the position.
Yellen stated, “We’ve taken this matter very seriously and sought out a candidate with the appropriate skill set for this position.” “We also expect that our candidate will be widely accepted in both lending and borrowing nations.”
Yellen stated that she has been satisfied with the favourable feedback from G20 finance officials regarding Banga, a 63-year-old US citizen of Indian descent who has been lauded for his efforts to reshape Mastercard and help people in developing nations escape poverty.
But the speed with which President Joe Biden nominated Banga, as a surprise choice immediately after the World Bank’s board began accepting nominations on Thursday, prompted criticism from some non-profit groups, climate and development professionals that the United States never wanted an open competition for the job and sought to quickly deter competitors.
As the World Bank’s largest shareholder with 16,35% of its voting power, the United States exerts considerable influence over the bank’s policies, and the lender’s president collaborates closely with the Treasury Department.
“So much for a merit-based, transparent process in which women are actively encouraged,” said Claire Healy, Washington director of the E3G climate think tank, in reference to the board’s announcement of the selection process.
“Time is limited and the consequences are high, so concerns about the process will likely be set aside in order to complete the revisions,” Healy explained.
Yellen is exerting pressure on the World Bank to finalise a package of comprehensive reforms aimed at significantly expanding its lending resources and mission to combat climate change and other global challenges.
As he transforms the bank into a force for combating climate change in addition to its traditional function as a poverty fighter, Banga will be confronted with a difficult set of issues pertaining to the institution’s finances and capital structure from the outset.
Yellen stated, “There is widespread consensus that we must mobilise private capital.” I cannot honestly conceive of anyone else who has a greater possibility of being able to accomplish this than this person.
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She added that his background is “really quite distinct” from previous World Bank presidents, who were frequently selected from civil service positions.
“This individual grew up in emerging markets, spent the majority of his career working in Africa, the Middle East, and Asia, and has lived and worked in countries facing development challenges,” she explained.
