Ajay Banga, the President of the World Bank Group, has embarked on a mission to enact reforms in the institution's leadership and refocus its objectives to effectively combat the challenges posed by climate change.
Addressing an audience at the Council on Foreign Relations in New York, Banga advocated for a shift in the World Bank's existing dual mission, which focuses on poverty alleviation and shared prosperity. He proposed expanding this mission to encompass climate change as well, as reported by AFP.
Banga laid out his vision to redefine the core areas of focus for the World Bank, which he referred to as five key knowledge "verticals." These verticals include people, prosperity, planet, infrastructure, and digital.
These remarks come ahead of the annual meetings of the World Bank and International Monetary Fund (IMF) in Marrakesh. Since assuming office in June, Banga has initiated several changes, including the establishment of a 15-person private sector advisory board and a commitment to foster deeper collaboration with regional development banks.
Recognizing the need to address internal issues within the World Bank, Banga pledged to enhance its functionality during his tenure. He expressed his determination to "fix the plumbing" within the institution, which he noted had encountered "dysfunctionality" in its boardroom.
Banga stressed the significance of the institution's board, which consists of 25 executive directors representing its 189 member countries. He highlighted the board's role in balancing the interests of the development lender with those of its member states.
Additionally, Banga discussed proposals for reforming the World Bank's balance sheet, potentially increasing its lending capacity by $125 billion.
He emphasized the necessity for increased collaboration with the private sector to address the substantial costs associated with both mitigating and adapting to climate change.
To encourage greater private sector involvement, Banga proposed that the World Bank assist in managing political risks and currency fluctuations related to climate-related investments, particularly in middle-income countries.
