Biden has appointed a businessman to head the World Bank

President Joe Biden nominated Ajay Banga, former CEO of Mastercard, to be the next president of the World Bank, an organization that Washington wants to give more prominence in addressing global issues such as climate change.

The 63-year-old Indian-born and US citizen will replace David Malpass – appointed by former President Donald Trump – who announced his retirement in late June and has been criticized for not focusing too much on issues such as global warming , a key issue on the Biden administration’s agenda.

While the official application process to replace Malpass opened on Thursday, with a final selection only expected in early May, Washington’s candidate traditionally becomes the leader of the World Bank, where the United States is the largest shareholder.

Traditionally, the World Bank is headed by an American, while the International Monetary Fund is headed by a European and the IDB by a Latin American.

Banga’s appointment It was a surprise because he was not included in a list cited by analysts in recent days, which included Samantha Power, head of the US Agency for International Development, and Ngozi Okonjo-Iweala, current head of the World Trade Organization, with dual Nigerian-American nationality. The World Bank board said Wednesday it would strongly encourage female candidates.

In a statement released Thursday by the White House, Biden stressed that Banga “has spent more than thirty years building and managing successful global companies that create jobs and drive investment in developing economies and lead organizations through periods of radical change.

Banga is currently a vice president of the US investment firm General Atlantic LP but before that he spent a decade as president and MasterCard Chief Executive Officer. He also held various positions at Citigroup Inc., including CEO of the Asia-Pacific region.

The United States, mainly through Treasury Secretary Janet Yellen, is promoting a change in the bank’s traditional approach so that loans focus not so much on the difficulties of each country but on global issues such as fighting climate change and pandemics .

The Biden administration had already kept a close eye on Malpass on this issue. Speaking at a conference last year, Malpass had questioned the scientific evidence that the use of fossil fuels causes global warming. He later apologized, saying he misunderstood himself as the bank routinely relies on climate science.

Raised in India, Banga has “a unique perspective on opportunities and challenges address developing countries and how the World Bank can deliver on its ambitious agenda to reduce poverty and expand prosperity,” Biden said.

He also highlighted another important aspect: “He has critical experience in mobilizing public and private resources to confront each other the most pressing challenges of our time, including climate change.

The former Mastercard chief has encouraged greater use of green bonds to boost climate finance in developing countries, the White House says. And he highlighted the challenge of financing climate-friendly projects in developing countries with high debt burdens.

However, the selection of Banga May Disillusionment Climate Change Activists who expected someone with a strong and specific background in environmental issues to be appointed. Other development experts question Banga’s limited experience in the public sector.

Banga co-led the Central American Alliance, an initiative launched by Vice President Kamala Harris to garner private sector support for the region to create more economic activity and jobs, with contributions of more than $4.2 billion dollars in about 50 companies and organizations.

Banga’s appointment has disappointed those who expected a woman in front of this body for the first time in history.

When asked about the decision to appoint a man, a government official said Banga has a “strong commitment to gender equality and inclusion” and that her experience growing up and having spent the early part of her career in India will help give you a different perspective than your predecessors.