Washington: World Bank[resident]Ajay Banga said on Tuesday (September 26) that he is working to reform the development finance institution’s “dysfunctional” board of directors to better address the challenges posed by climate change. has pledged to refocus its mission.[residentAjayBangasaidonTuesday(Sept26)thatheisworkingtoreform“dysfunctionality”intheboardroomofthedevelopmentlenderandpledgedtorefocusitsmissiontobetteraddressthechallengesposedbyclimatechange[常駐のアジャイ・バンガ氏は火曜日(9月26日)、開発金融機関の取締役会の「機能不全」の改革に取り組んでいると述べ、気候変動によってもたらされる課題により適切に対処するためにその使命に再び焦点を当てることを約束した。[residentAjayBangasaidonTuesday(Sept26)thatheisworkingtoreform“dysfunctionality”intheboardroomofthedevelopmentlenderandpledgedtorefocusitsmissiontobetteraddressthechallengesposedbyclimatechange
Mastercard’s former CEO told the Council on Foreign Relations in New York that the bank should change its current dual mission of alleviating poverty and promoting shared prosperity to include climate change.
“Because our crises are intertwined, I think these two goals need to change to ending poverty and having a more livable planet,” he said.
He added that he is working to redefine the World Bank’s work around what he calls five key knowledge “verticals”: people, prosperity, planet, infrastructure and digital.
Banga, an Indian-born naturalized U.S. citizen, was appointed by President Joe Biden to lead the World Bank earlier this year and began his new role in June.
Banks have historically been led by Americans, while the International Monetary Fund (IMF) has been run by Europeans. The arrangement has been controversial since the two institutions were established after World War II.
Mr. Banga has already made a number of changes to the bank’s management since taking over, creating a new 15-member private sector advisory board and pledging to deepen cooperation with regional development banks to address common challenges. are doing.
Mr Banga on Tuesday vowed to “fix the plumbing” at the bank, which had been plagued by board “dysfunction”.
The World Bank’s Board of Directors is made up of 25 directors appointed by its 189 member countries and must balance the interests of the development finance institution with the interests of the countries it represents.
“After I leave, I want people to say I worked much better at the bank than when I left, so my successor doesn’t have to deal with what I have.” said.
Proposals from countries including the United States and Saudi Arabia to reform the World Bank’s balance sheet could add up to US$125 billion (RM586.25 billion) in additional lending capacity, Banga said in New York. told the audience.
This is a significant increase for the development financier, which mobilized just over US$100 billion last year.
Banga had previously called on the World Bank to work more closely with the private sector to address the huge costs of climate change mitigation and adaptation.
Banga said on Tuesday that for the greatest impact, regions need to be carefully targeted to encourage private investment to curb carbon emissions.
He said: “If we don’t make the transition to renewable energy, emissions growth will be so high that we will lose all the work being done in developed countries to reduce the use of emissions-intensive energy.” We need to focus on that.” he said without giving his name.
These middle-income countries are countries where “there is some hope in the private sector that renewable energy can be profitable, including in terms of scalable models,” he added.
Banga said the World Bank should offer to manage some of the political risks associated with climate-related investments in these countries, as well as currency fluctuation risks, to encourage private sector participation. .
He told an audience in New York that the World Bank Group already has a political risk management body in place, but currency risk remains an issue that needs to be resolved.
“That’s how you involve the private sector,” he added. –AFP