Ajay Banga is World Bank president

• Indian-American Ajay Banga was appointed as World bank President.
  • He is the first ever Indian-American to be selected for this post.

Selection Process

• Selection is done through an open, merit-based and transparent process.
• Candidates must be nationals of the Bank’s member countries.
• Candidates should meet several conditions including a proven track record of accomplishment, Experience of managing large organizations etc
• Candidate nominations must be made by Executive Directors, or by Governors through their Executive Directors.
• Traditionally, the President of the Bank has always been a U.S. citizen nominated by the US, the largest shareholder in the bank.
• The nominee is subject to confirmation by the board of executive directors to serve a five-year, renewable term.
• President of World Bank is ex officio chair of Board of Executive Directors of International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA).

About World Bank

• It is an international financial institution that provides loans and grants to the governments of low and middle-income/developing countries for the purpose of pursuing capital projects.
• It was established along with the IMF at the 1944 Bretton Woods Conference.
• The WB Group, which is the parent organisation of the WB, includes –
  • IBRD: It provides loans, credits and grants.
  • IDA: It provides low or no-interest loans to low-income countries.
  • International Finance Corporation (IFC): It provides investment, advice and asset management to private companies and governments.
  • Multilateral Guarantee Agency (MIGA): It insures lenders and investors against political risk such as war.
  • International Centre for the Settlement of Investment Disputes (ICSID): It settles investment-disputes between investors and countries.
    • Note– India is a member of all except ICSID.
  • These all serve the dual objectives of the WB Group, which are to end extreme poverty by 2030 and increase shared prosperity for the bottom 40% of the population worldwide.