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Biden nominates former Mastercard CEO Ajay Banga to head World Bank

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(Last Updated On: February 24, 2023)

US President Joe Biden nominated former Mastercard Inc (MA.N) CEO Ajay Banga to lead the World Bank, betting the India-born executive’s ties to the private sector and emerging markets will jump-start the 77-year-old institution’s overhaul to better address climate change, Reuters reported.

Biden’s nomination on Thursday of Banga, 63, now a US citizen, all but assures he will assume a job that oversees billions of dollars of funding, as it races to help developing countries address climate change.

The World Bank (WB) on Wednesday said it expects to select a new president by early May to replace David Malpass, who announced his resignation last week after months of controversy sparked by his initial refusal to say if he accepted the scientific consensus on climate change, and pressure by Treasury Secretary Janet Yellen for him to adopt “bolder” reforms, read the report.

“I think the speed of the nomination, less than 48 hours after the WB board launched the process, reflects a desire to discourage any challengers and wrap it up quickly,” said Scott Morris, a senior fellow at the Center for Global Development and a former US Treasury official.

Biden noted Banga’s decades of experience building global companies and public-private partnerships to fund responses to climate change and migration and said he had a proven track record working with global leaders, Reuters reported.

“Ajay is uniquely equipped to lead the World Bank at this critical moment in history,” Biden said in a statement, hailing the business executive’s Indian roots and knowledge of the challenges facing developing countries and ability to mobilize private capital to tackle big problems.

Banga’s work in India and other emerging markets, his “obsession” with expanding financial inclusion, and his deep knowledge of new technologies could help bridge the divide between rich countries and emerging markets, said Luis Alberto Moreno, who worked closely with Banga while serving as president of the Inter-American Development Bank.

“He can really be a force for change,” Moreno said, noting that Banga enjoyed the trust of financial markets.

India was expected to support Banga’s candidacy, according to Krishnamurthy Subramanian, the former top economic adviser to the Indian government who now serves as India’s executive director at the International Monetary Fund. “It’s an elegant solution.”

DIVERSITY

The bank has historically been headed by someone from the United States, its largest shareholder, while a European heads the International Monetary Fund (IMF), but developing countries and emerging markets have pushed to widen those choices.

Banga’s nomination is the first to be made public, but the bank will accept nominations from other member countries through March 29. Germany, another major shareholder, this week said the job should go to a woman since the bank has never been headed by a woman, Reuters reported.

A senior US administration official said they did not know if other countries would nominate candidates for the post.

Asked about Washington’s decision not to nominate a woman, the official said Banga had “a personal conviction and excellent track record promoting diversity, equity and inclusion in the work that he does” and would bring that view to the bank.

But Jeff Hauser, who heads the progressive Revolving Door Project, demanded Biden retract the nomination of a top official from a “rapacious international private equity firm” who had previously worked only in private sector firms.

“Neither private equity, nor MasterCard, nor Citigroup, nor PepsiCo, nor Nestlé, nor Dow promote shared prosperity. They all do vastly more to exacerbate inequality than to fight it,” he said in a statement.

Oxfam International said the next bank president should be chosen through a transparent global process. “The World Bank is not a US bank, a commercial bank, or a private equity firm. For a job of this stature, we need more than a tap on the shoulder from President Biden.”

Banga is vice chair of General Atlantic, a US private equity firm that administration officials said has invested over $800 million in EV charging solutions, solar power and sustainable farming, read the report.

He retired in December 2021 after 12 years at the helm of Mastercard, where administration officials noted that he helped 500 million unbanked people join the digital economy, averted layoffs of the bank’s 19,000 employees during the COVID-19 pandemic, and led work on climate, gender and sustainable agriculture.

Vice President Kamala Harris said Banga brought “great insight, energy and persistence” to his role as co-chair of the Partnership for Central America, which has mobilized $4.2 billion in public, private and nonprofit funds to advance economic opportunity in northern Central America.

World

Blinken arrives in Saudi Arabia to discuss Israel normalization, post-war Gaza

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(Last Updated On: April 29, 2024)

U.S. Secretary of State Antony Blinken arrived in Saudi Arabia on Monday, the first stop in a broader trip to the Middle East to discuss issues including the governance of Gaza once the war with Israel ends.

The top U.S. diplomat heads to Israel later this week, where he is expected to press Israeli Prime Minister Benjamin Netanyahu to take the concrete and tangible steps U.S. President Joe Biden demanded this month to improve the dire humanitarian situation in Gaza.

In Riyadh, Blinken is expected to meet with senior Saudi leaders and hold a wider meeting with counterparts from five Arab states – Qatar, Egypt, Saudi Arabia, the United Arab Emirates and Jordan – to further the discussions on what governance of the Gaza Strip would look like after the war, according to a senior State Department official.

Blinken is also expected to bring together Arab countries with the European states and discuss how Europe can help the rebuilding effort of the tiny enclave, which has been reduced to a wasteland in the six-month long Israeli bombardment.

A group of European nations, including Norway, plan to recognise Palestinian statehood in conjunction with the presentation of an Arab state-backed peace plan to the United Nations.

“We can see by joining forces we can make this more meaningful. We really want to recognise the Palestinian state, but we know that is something you do once,” Norwegian Foreign Minister Espen Barth Eide told Reuters on the sidelines of a World Economic Forum meeting in Riyadh.

Blinkin’s trip comes as Egypt was expected to host leaders of the Islamist group Hamas to discuss prospects for a ceasefire agreement with Israel.

Hamas fighters attacked Israel on Oct. 7, killing 1,200 people and seizing 253 hostages, according to Israeli tallies.

Israel retaliated by imposing a total siege on Gaza, then launching an air and ground assault that has killed more than 34,000 Palestinians, say health authorities in Hamas-ruled Gaza.

Conversations over Gaza’s rebuilding and governance have been going on for months with a clear mechanism yet to emerge.

The United States agrees with Israel’s objective that Hamas needs to be eradicated and can no longer play a role in Gaza’s future but Washington does not want Israel to re-occupy the strip.

Instead, it has been looking at a structure that will include a reformed Palestinian Authority with support from Arab states.

Blinken will also discuss with Saudi authorities the efforts for a normalization deal between the kingdom and Israel, a mega deal that includes Washington giving Riyadh agreements on bilateral defense and security commitments as well as nuclear cooperation. – REUTERS

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Police arrest scores of pro-Palestinian protesters on US university campuses

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(Last Updated On: April 28, 2024)

Pro-Palestinian protesters were arrested on a handful of U.S. university campuses on Saturday, as activists vowed to keep up the movement seeking a ceasefire in Israel’s war with Hamas among other demands.

The Indiana University police department in Bloomington said in an emailed statement that 23 protesters were arrested there.

Indiana State Police along with Indiana University police told demonstrators they could not pitch tents and camp on campus. When the tents were not removed, police arrested and transported protesters to the Monroe County Justice Center on charges of criminal trespass and resisting arrest.

“The Indiana University Police Department continues to support peaceful protests on campus that follow university policy,” the police statement read.

Pro-Palestinian protests have spread to college campuses across the U.S., stoked by the mass arrest of over 100 people on Columbia University’s campus last week.

In addition to a ceasefire, protesters are demanding that their schools divest from companies involved with Israel’s military and seeking an end to U.S. military assistance for Israel along with amnesty for students and faculty members who have been disciplined or fired for protesting.

School leaders at several universities have responded in the past week by asking police to clear out camps and arrest those who refuse to leave. While saying they defend free speech rights to protest, the leaders say they will not abide activists infringing on campus policies against hate speech or camping out on university grounds.

Massachusetts State Police said in a statement that they helped clear out a protest encampment at Northeastern University in Boston and that 102 protesters who refused to leave were arrested and will be charged with trespassing.

Northeastern University said in a statement on social media that it decided to call in police as “what began as a student demonstration two days ago was infiltrated by professional organizers with no affiliation to Northeastern.”

At Arizona State University, campus police arrested 69 protesters early Saturday, the school said in a statement.

The university said “a group of people – most of whom were not ASU students, faculty or staff – created an encampment and demonstration” and were arrested and charged with criminal trespass after refusing to disperse. – REUTERS

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Hamas says it received Israel’s response to its ceasefire proposal

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(Last Updated On: April 27, 2024)

Hamas said it had received on Saturday Israel’s official response to its latest ceasefire proposal and will study it before submitting its reply, the group’s deputy Gaza chief said in a statement.

“Hamas has received today the official response of the Zionist occupation to the proposal presented to the Egyptian and the Qatari mediators on April 13,” Khalil Al-Hayya, who is currently based in Qatar, said in a statement published by the group.

After more than six months of war with Israel in Gaza, the negotiations remain deadlocked, with Hamas sticking to its demands that any agreement must end the war.

An Egyptian delegation visited Israel for discussion with Israeli officials on Friday, looking for a way to restart talks to end the conflict and return remaining hostages taken when Hamas fighters stormed into Israeli towns on Oct. 7, an official briefed on the meetings said.

The official, who spoke on condition of anonymity, said Israel had no new proposals to make, although it was willing to consider a limited truce in which 33 hostages would be released by Hamas, instead of the 40 previously under discussion.

On Thursday, the United States and 17 other countries appealed to Hamas to release all of its hostages as a pathway to end the crisis.

Hamas has vowed not to relent to international pressure but in a statement it issued on Friday it said it was “open to any ideas or proposals that take into account the needs and rights of our people”.

However, it stuck to its key demands that Israel has rejected, and criticised the joint statement issued by the U.S and others for not calling for a permanent ceasefire and the withdrawal of Israeli forces from Gaza.

White House national security adviser Jake Sullivan said on Friday he saw fresh momentum in talks to end the war and return the remaining hostages.

Citing two Israeli officials, Axios reported that Israel told the Egyptian mediators on Friday that it was ready to give hostage negotiations “one last chance” to reach a deal with Hamas before moving forward with an invasion of Rafah, the last refuge for around a million Palestinians who fled Israeli forces further north in Gaza earlier in the war.

Meanwhile, in Rafah, Palestinian health officials said an Israeli air strike on a house killed at least five people and wounded others.

Hamas fighters stormed into Israeli towns on Oct. 7, killing 1,200 people and capturing 253 hostages. Israel has sworn to annihilate Hamas in an onslaught that has killed more than 34,000 Palestinians.

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