The Biden administration’s nomination of Ajay Banga, former executive chairman of Mastercard, to be the next president of the World Bank comes at a time when climate activists have been clamouring for a person with a strong background in environmental issues.
That could be a big challenge for the 63-year-old executive vice-chairman of General Atlantic when the World Bank board meets to ratify his appointment. He has significant experience in the financial sector – something that would have loaded the dice in his favour – but none in handling climate issues. He has no public sector experience either.
The World Bank president’s job would require a deft jugglery between trying to address global warming and poverty reduction goals. Developing nations are especially worried that the excessive focus on global warming could reduce the Bank’s poverty reduction goals.
And the outgoing president David Malpass was found wanting, especially on this front. Since last September Malpass has been under fire for his views on climate change after he said “I am not a scientist” to a question on whether he accepted the scientific consensus that fossil fuel burning was causing temperatures to rise. He has had to quit one year before his tenure ended.
US Treasury Secretary Janet Yellen, who is in India for a gathering of finance ministers of the Group of 20, underscored this challenge: “Ajay Banga understands that those core objectives are deeply intertwined with challenges like meeting ambitious goals for climate adaptation and emissions reduction, preparing for and preventing future pandemics, and mitigating the root causes and consequences of conflict and fragility.”
But if selected, Banga, his friends say, can make the transition seamlessly. Son of an army Lieutenant General, Banga had a nomadic childhood, something, he said, has made him very adaptable. One example: he loves tuning in to Sikh radio, which airs traditional hymns. Yet he is also thoroughly Americanised. He loves baseball (the Mets), listens to Quincy Jones and Lady Gaga and is a diehard Elvis Presley fan.
c and has undergone random searches at US airports even though he runs a global company, underscoring the need for diversity in the multi-racial country.
Delivering the 2014 commencement address at New York University Stern School of Business’s convocation ceremony, he underscored the importance of diversity. Banga said even though he has felt different from others, he realised early in life that being comfortable with his identity and working hard is critical to succeed in life. In the lecture, he also said diversity in life and work place, drives better insights, better decisions and better products.
Banga would often talk fondly about his days at IIM-Ahmedabad where he enjoyed his time, “perhaps a little too much.”
His primary education was Hyderabad Public School, followed by BA in Economics from St Stephen’s College. He did a post-graduation degree from the Indian Institute of Management, Ahmedabad.
He started his career in Nestle, and after working there for 13 years, moved to Pepsico as part of the team that launched the fast food franchises in India.
He moved to Citibank in 2005 to spearhead its microfinance sector across the world and became the CEO, Citigroup Asia (Pacific). In 2010, he became the CEO of Mastercard (from COO). In January 2022, he became the vice-chairman of General Atlantic.
He was awarded the Padma Shri Award by the President of India in 2016, the Distinguished Friends of Singapore Public Service Star in 2021, the Ellis Island Medal of Honor in 2019, and the Business Council for International Understanding’s Global Leadership Award.
Banga is now set for what would perhaps be one of the biggest feathers in the cap of any Indian.