World Bank Group President Ajay Banga is on a mission to reform the leadership and refocus the institution’s mission to confront climate change challenges.
Speaking at the Council on Foreign Relations in New York, Banga called for a shift from the World Bank’s current twin mandate of poverty alleviation and shared prosperity to include climate change, reported AFP.
Banga outlined his vision to redefine the World Bank’s core areas of focus, which he referred to as five key knowledge “verticals”: people, prosperity, planet, infrastructure, and digital.
His remarks come ahead of the World Bank and International Monetary Fund’s (IMF) annual meetings in Marrakesh. Banga, who assumed office in June, has already initiated several changes, such as establishing a 15-person private sector advisory board and committing to deeper collaboration with regional development banks.
Banga acknowledged the need to address internal “dysfunctionality” at the World Bank and pledged to improve its functionality during his tenure. Banga has also vowed to “fix the plumbing” at the bank, which he said suffered from “dysfunctionality” in the boardroom.
He emphasised the importance of the institution’s board, comprised of 25 executive directors representing its 189 member countries, in balancing the interests of the development lender and member states.
Banga also discussed proposals to reform the World Bank’s balance sheet, potentially adding $125 billion in lending capacity.
He also highlighted the need for increased collaboration with the private sector to address the substantial costs associated with climate change mitigation and adaptation.
To encourage private sector participation, Banga proposed that the World Bank help manage political risks and currency fluctuations associated with climate-related investments, particularly in middle-income countries.
Published On:
Sep 27, 2023
www.indiatoday.in
https://www.indiatoday.in/business/story/world-bank-chief-ajay-banga-dysfunctional-development-lender-fixing-the-plumbing-2441345-2023-09-27
