New World Bank Chief to Begin Global Tour with Peru

Facts

• The World Bank on Thursday said its new president Ajay Banga would visit Peru and Jamaica next week in the first leg of a seven-month-long global tour amid efforts to expand the lender's anti-poverty mission.¹
• Through December, Banga is expected to deepen relations with countries the Bank serves and rethink strategic partnerships with other multilateral banks and development organizations.²
• On his first day on the job last Friday, Banga asked the Bank's staff to double down on development and climate efforts, reportedly saying the Bank's mission is to "create a world free from poverty on a livable planet."³
• In February, the former Mastercard CEO was nominated by US Pres. Joe Biden to become the 14th president of the World Bank in its 77-year history, following the resignation of the Donald Trump-appointed David Malpass.⁴
• Last month, the 63-year-old India-born American businessman was approved by the World Bank's executive board to lead the global lender for a five-year term.⁵
• Meanwhile, in its recent half-yearly update, the Bank reported the pandemic, the war in Ukraine, and anti-inflationary procedures taken by central banks have disproportionately affected the world's most vulnerable countries.⁶

Sources: ¹Reuters, ²World Bank, ³Al Jazeera, ⁴New York Times, ⁵Wall Street Journal, and ⁶Guardian.

Narratives

• Pro-establishment narrative, as provided by Economist. Despite his lack of experience in development or governance positions, Banga will likely prove he was the right choice to lead the World Bank as the US and Europe seek capital to counter Chinese lending that takes advantage of vulnerable nations. He has succeeded in increasing MasterCard's stock prices more than 13-fold and can repeat it in the global lender.
• Establishment-critical narrative, as provided by Foreign Policy. The World Bank needs more money for its anti-poverty missions and national development programs. While Banga may get creative with the lender's balance sheet to increase lending, it will be hard for the Bank to counter China — which actually offers substantial resources — as the West relies on rhetoric to help developing countries.

Predictions