As shareholders gather in Washington for the annual spring meeting of the World Bank, all eyes are on Ajay Banga, who is widely expected to be confirmed as the bank’s president in the coming weeks and take over this summer. Banga’s leadership will be closely scrutinized, particularly in his approach to confronting climate change, which has become a pressing global issue.
Leaders and academics are urging the World Bank to do more to support poor countries grappling with the impacts of climate change. Critics have long argued that the institution has not done enough to address this crisis. In response to these concerns, major shareholders have already approved some initial reforms, including measures to increase the bank’s lending capacity and attract more private investment.
Banga faces a delicate diplomatic balancing act as he assumes his role. Nominated by the Biden administration, he is expected to align with the U.S.’s stance on countering China’s influence in the developing world and providing alternative lending options. However, this raises questions about China’s continued borrowing from the World Bank despite the ongoing debate on funding.
With climate change being a top global priority, Banga’s leadership at the World Bank will be closely watched to see how he addresses this urgent issue and steers the institution towards more effective responses. As discussions unfold during the spring meeting, stakeholders will be keenly observing the bank’s direction under its new president.
Source: nytimes.com
