By Yara Rizk/African Report
The new president of the World Bank is faced with the task of balancing his image as a defender of vulnerable populations with his close ties with American interests.
In recent years, the World Bank has been the subject of harsh and frequent criticism, accused of being unable to keep pace with financing needs, its cumbersome bureaucracy and the administrative bottlenecks that hamper its effectiveness.
It currently takes an average of 27 months before a single dollar is disbursed for a project, and sometimes more than 10 years before any tangible benefits are seen.
Perhaps this is why, at the annual meetings of the World Bank (WB) and the International Monetary Fund (IMF), held in Marrakech in mid-October, World Bank president Ajay Banga seemed determined to appear closer to the realities on the ground than his institution.
READ MORE IMF, World Bank: In Marrakech, Africa and ‘New South’ call for accelerating reforms
Between insisting that journalists call him “Ajay” and the casual tone of his various speeches, this native of Pune, in central India, who was elected president of the Bretton Woods institution in May this year, spared no effort to come across as down to earth. He knows that his role as reformer has been eagerly awaited.
Climate pledges
Without doubt, the greatest expectations of Banga concern the fight against global warming – all the more so since his accession to the presidency followed the early departure of his predecessor, David Malpass, a man close to Donald Trump who had been criticised for his climate-sceptic views.
It would be illusory to expect a revolution
“It is far too early to assess Ajay Banga’s work in this area, given his recent arrival in the post,” Abdoul Salam Bello, executive director representing 23 African countries at the World Bank, tells The Africa Report. But it is possible to examine the promises he has already made, as well as the previous measures he wishes to reinforce.
One of these is his desire, repeatedly emphasised in Marrakech, to focus on natural gas. “Natural gas is much less polluting than oil and coal,” he said, pointing out that the World Bank has invested 70% of the sums devoted to energy in this resource.
US ties
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Banga has held key positions at Nestlé, PepsiCo, Citigroup, Mastercard and General Atlantic. In this capacity, he has already worked closely with many global leaders.
In February 2015, President Barack Obama appointed him to his advisory committee on trade policy. He is also co-chair of the public-private Partnership for Central America launched by US Vice President Kamala Harris, whose mission is to mobilise public, private and non-profit resources for this region of the world.
READ MORE Ten things to know about Ajay Banga, the new head of the World Bank
Nevertheless, much is expected from the new face of the World Bank in terms of his commitment to the most vulnerable of the world’s people. As the first head of a Bretton Woods institution to come from a country in the Global South, his appointment has attracted the support of many African states.
Scepticism
However, while one section of public opinion hopes that Banga will make significant efforts to help the disadvantaged regions of the world, another remains sceptical about the real-world impact of his actions. “It would be illusory to expect a revolution,” says one senior African Development Bank executive.
“Banga, an American citizen [naturalised in 2007], appointed by Joe Biden’s administration, will not deviate from the path mapped out by the will of his constituents.”
Banga has also received public warnings. During a discussion on stage in Marrakech, the Anglo-Sudanese billionaire Mo Ibrahim took great pleasure in listing the organisational anomalies that persist within the World Bank.
Indignant about the $100m annual operating budget for the board of directors alone, Ibrahim invited Banga to put his own house in order before “coming to Africa to give lessons in good governance”.
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Banga’s response? A somewhat embarrassed smile.
