Jul 25, 2023: What is the world bank and the vision Ajay Banga? What would it take to build a sustainable world without poverty? What is World Bank? Want to know Mr. Banga better?
Ajay Banga, president of the World Bank, pointed out the need for a more comprehensive approach to end poverty. He emphasized the importance of addressing issues related to food shortages, vulnerability pandemics, and climate change because these problems are interconnected.
Mr. Banga believes that the World Bank's mission should change to include a focus on a sustainable world in addition to reducing poverty. He emphasized the necessity of increasing private sector investment to expand and improve infrastructure and services in cities and replace outdated systems, as well as the significance of municipal funding for India's prosperity.
Get to know Mr. Ajay Banga better
Mr. Ajay Banga, 63, a native of India who spent his formative years there, has become a citizen of the United States since 2007.
In 2016, Mr. Banga earned the third-highest civilian award in India, the Padma Shri.At General Atlantic, he most recently held the position of vice chairman.
From 2020 to 2022, Ajay Banga, an expert in finance and development, served as Honorary Chairman of the International Chamber of Commerce.
Picture source: wikipedia
Late in February, US President Joe Biden put out his name for the post. Since being appointed, Mr. Banga has met with representatives from 96 governments and traveled a total of 39,546 miles during a three-week world tour to meet with representatives from eight different governments, business titans, and civil society organizations.
What is the World Bank and its mission?
The World Bank is an organization that helps countries all around the world to become better and stronger. They do this by giving money to these countries to help them build things like schools, hospitals, and roads. They also give advice to these countries on how to use the money in the best way possible, so that they can improve the lives of the people who live there.
Think of it like a bank that helps other banks. When one bank needs help to buy something important, the other banks can chip in some of their money to help out. The World Bank is like the biggest bank in the world, and it helps lots of different countries when they need it. Currently, there are 189 countries that are members of the World Bank Group.
The mission of the World Bank is to help put an end to extreme poverty and ensure that wealth is shared among everyone in a way that doesn't harm the planet. They want to improve the lives of people in need, create opportunities for everyone to thrive, and do it in a way that benefits both present and future generations. The World Bank works towards building a better and more sustainable world for everyone.
Currently, there are 189 countries that are members of the World Bank Group.
These countries are represented by a Board of Governors, which is made up of one governor and one alternate governor from each member country. The Board of Governors is responsible for making important decisions about the World Bank's policies and operations.
Some of the largest shareholders and contributors to the World Bank are the United States, Japan, China, Germany, the United Kingdom, and France. However, the World Bank also has many other member countries, including many developing countries from Africa, Asia, and Latin America.
Source: World Bank
Sustainable- doing things in a way that can continue for a long time without causing harm to the environment, society, or economy. It's about making choices and using resources wisely so that we don't use up all our natural resources, harm the planet, or make it difficult for future generations to live well.
Mr. Ajay Banga’s Vision
Ajay Banga, the president of the World Bank, thinks that the World Bank should not only work on reducing poverty but also have a new mission that includes taking care of the planet and making sure it stays healthy for the future.
Banga believes that the World Bank should expand its goals and focus not only on helping people in need but also on making sure our planet is safe and healthy for everyone, now and in the future. It's like taking care of both people and the Earth at the same time.
Ajay Banga highlighted the limitations in attracting money from private sectors to various projects, stating that the current efforts have not been very successful.He identified two key obstacles to private investments in sustainable and high-quality infrastructure: the need to reduce the risk in a project and creative finance. To handle the difficulties, Banga underlined the need for cooperation between governments and multilateral banks. He emphasized the value of collaboration in achieving development and expansion.
Multilateral banks- a special organization created by two or more countries to help poorer nations grow their economies and improve the lives of their people. Ex- World bank, Inter-American Development Bank, etc.
Creative finance- using innovative or clever methods to manage and raise money for various purposes.
Private sector- businesses that are owned and run by individuals or groups of people. These companies are not part of the government, and their main goal is to make a profit by selling goods or services to people like us. Examples of the private sector include stores, restaurants, factories, tech companies, and many others.
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On a related note, Finance Minister Nirmala Sitharaman, mentioned that cities require an estimated USD 29.4 trillion( 2,410 lakh crores) in climate investment from 2018 to 2030 to effectively reduce and adapt to climate change.
India has initiated a pilot program in partnership with the Organisation for Economic Co-operation and Development (OECD) to address tax and financial crime investigations in the South Asian Region. The program commenced on July 18, 2023, as announced by the Finance Minister. She emphasized the importance of using interconnected investigations to combat tax stealing, corruption, and money laundering, aiming to develop synchronized and more effective solutions against financial crimes.
Money laundering- the process of making illegally obtained money or legally unaccounted money (taxes not paid) "dirty" money appear legitimate or "clean."