The suspense over the succession of the outgoing World Bank president, David Malpass, dissipated this Thursday, when the candidate presented by the United States, Ajay Banga, is the only candidate to take the helm of the institution. Traditionally, the World Bank is the exclusive preserve of the United States, whose citizen has always directed the Bank since its creation, following the Bretton Woods agreements in 1944. But this hegemony was increasingly challenged, in particular by the main countries emerging countries, led by Brazil, China, India and Russia, which for several years have wanted to see their place in international financial institutions strengthened.
The context of Russia’s invasion of Ukraine and the trade war between China and the United States could have heralded competing candidacies, with the Russian agency TASS even assuring in early March that Vladimir Putin was going to propose a Russian candidacy. . But in the end nothing happened and the World Bank confirmed it on Thursday in a press release: “The board of directors has received an application and specifies that Ajay Banga, a US citizen, will be considered for the position.” The name of David Malpass’s successor, who will step down by the end of June at the latest, should be known by early May.
A final speech from David Malpass in the days to come
Despite the presence of only one candidate, the World Bank announced that it would complete the selection process as initially planned, including a hearing of Ajay Banga by the Bank’s CEOs, representing the main Member States, before of his possible appointment to the position. .
However, a timetable for the next steps is not known, said a source close to the World Bank, who noted that the opening, on April 10 and for a week, of the spring meetings of the International Monetary Fund (IMF) and the World Bank, you can lengthen the process a bit. “The announcement should not be made before the beginning of May,” the same source added. David Malpass, in particular, is due to deliver the first formal opening address of these biannual meetings of the two institutions, which are traditionally the occasion to update global economic forecasts for the current year.
Support from emerging or developing countries
The nomination process formally opened on February 23, with the United States proposing Ajay Banga’s candidacy from its launch. He immediately undertook numerous trips abroad, in order to get as much support as possible for his election, particularly from emerging or developing countries. He can thus count on India, Kenya and even South Africa, which have already announced that they will support his candidacy.
And the Treasury Department is particularly optimistic for the rest of the process, considering that “reception (by other states) has been very positive,” according to a Treasury official. “I thought the campaign would pass très bien”, at-il ajouté, “son expérience est vue comme un point essentiel, tout comme sa connaissance du secteur privé et des partenariats entre privé et public, essentiels dans le cadre de la Banco Mundial “. However, a campaign was interrupted for a week, Ajay Banga was confined in India, having tested positive for Covid-19.
First president not born in the United States
If no other candidate had been publicly announced so far, States had the possibility to submit a candidacy privately to the World Bank Board of Directors, which could therefore only announce the list of candidates at the outcome of the process, which ended on Wednesday night. Among its recommendations to the States, the Bank had insisted on the possibility of proposing the candidacy of women for the position. The institution has been directed, since its creation, solely by men.
An American citizen but born and raised in India, where he began his professional career, Ajay Banga would become the first World Bank president not born in the United States. Under a tacit agreement between Western powers dating back to 1945, the World Bank has traditionally been run by an American, with the management of the IMF reserved for a European.
Source: BFM TV
