Candidate of the United States, business leader of 63 years, the American-Indian has assured, on several occasions, want to give priority, during his mandate, to the financing of the fight against global warming and the reform of the WB.

He is expected to take office for a five-year term on June 2, the WB said.

Traditionally, the WB is the preserve of the United States, whose citizen has always led the Bank since its creation, in the wake of the Bretton Woods agreements in 1944.

But this hegemony was increasingly being challenged, particularly by the major emerging countries, led by Brazil, China, India and Russia, which have wanted to see their place in the international financial institutions strengthened for several years.

Amid rising geopolitical tensions, the U.S. decision to nominate Banga, who was born and raised in India, was anything but innocuous, as the U.S. tries to move closer to the other Asian giant to counter Chinese influence in the region.

As soon as he was appointed, Ajay Banga embarked on a world tour, aimed at promoting his candidacy and obtaining the support of as many countries as possible, especially emerging and developing countries.

He was able to count on India, Kenya and South Africa, which supported his candidacy.

But not only, since Mr. Banga was also able to count on the support of a number of French-speaking countries, in particular, as recalled mid-April to AFP Abdoul Salam Bello, administrator of the WB representing 23 African countries.

"I think the campaign is going very well," said a US Treasury official at the end of March, "his experience is seen as essential, as is his knowledge of the private sector and the partnerships between private and public, essential within the framework of the World Bank."

Put theory into practice

"We believe that his experience will be very important in helping the WB to strengthen the mobilization of the private sector. During our discussion, he talked about very interesting practical solutions to strengthen this private engagement," Bello added.

"When you know that you may need funding, it is difficult not to support the candidate who will be elected," an African minister told AFP during the spring meetings of the World Bank and the International Monetary Fund (IMF) in early April.

World Bank President Ajay Banga in Abidjan on March 7, 2023 © Issouf SANOGO / AFP

In a context where more than sixty poor and emerging countries are on the brink or hit by a debt crisis, financing from both institutions is even more essential to avoid a collapse of their national economies.

Especially since the rise in rates of the main central banks affects the access of these countries to financing, while greatly increasing costs, further complicating the budgetary situation of these countries.

However, the hardest part now remains to be done for Ajay Banga, who will have to meet expectations on two burning and related issues: the reform of international financial institutions, starting with the WB, and an increase in financing for the fight against global warming.

Especially since the needs are enormous, as the IMF has repeatedly recalled: a minimum of 1,000 billion dollars per year will be needed, over the next few years, to help emerging and developing countries cope with them.

At the spring meetings, the WB's major contributors agreed to increase its financing capacity by $50 billion over the next ten years, a significant effort but notoriously insufficient compared to needs.

In order to respond, Ajay Banga did not hide his desire to involve the private sector.

"There is not enough money, whether in multilateral development banks, in major governments in the developed world, in civil society, even with the most philanthropic intentions," he insisted in early March.

Among the solutions advocated, Mr. Banga envisaged rethinking the project-specific financing approach in order to provide greater incentives to the private sector. He will now have the opportunity to move from theory to practice.

© 2023 AFP