World Bank President Ajay Banga is in Canberra this week. This is the primary time a World Bank president has visited Australia. Seven years.
Why is he here? This goes to the center of the World Bank's purpose.
Founded to finance reconstruction after World War II, the World Bank's modern mission is to create a A poverty-free world on a livable planet. He has 189 Member States .
What does the World Bank do?
The Bank funds projects in developing countries through a combination of Grants and concessional loans That countries pay back. Last yr it provided 136 billion dollars 75 countries in grants and loans.
One of his funds Agency for International Developmentsupports projects in 76 least developed countries of the world.
Through this work, 36 countries have moved from least-developed to middle-income status, and lots of, akin to South Korea, have now turn into donors themselves.
This signifies that a big a part of the World Bank president's job is to secure funding. The International Development Agency Fund is currently three-year. “Replenishment” period Where he seeks support from donors.
The World Bank has set a Ambitious goal To raise about $44.2 billion from donors Announce your commitments At the Bank's December meeting.
If it could possibly persuade donors to achieve that figure, it could possibly. Leverage It turned it into an A$149.9 billion fund by utilizing its AAA credit standing to borrow more. International capital markets.
Why Australia's Role Matters
From the bank's standpoint, Australia plays an important role. Role It is a very necessary donor within the Pacific, for instance, donating money. For a fund which has contributed to a 50% increase within the World Bank's Pacific-based staff and a sevenfold increase in its projects within the region.
It supports More than 95 projects on agriculture, digital development, education, fisheries, health, renewable energy, transport and employment.
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Compared to other countries, Australia gives one. A relatively low ratio Directing most of its funding through bilateral channels – its development funding through multilateral institutions akin to the World Bank.
The World Bank needs one. Union of Nations Large commitments can be made to fund the bank's work, including in Australia.
Who is Ajay Banga?
Banga just isn’t your typical appointment, born and raised in a developing country and holding a presidency traditionally held by an American. He is an American citizen.
He comes from business First President and CEO of Mastercard, in addition to roles with PepsiCo, Citigroup and Nestlé in India. He was the Chairman of the International Chamber of Commerce.
He is is known Founded the Center for Inclusive Growth for his work at MasterCard, which advances equitable and sustainable economic growth and financial inclusion around the globe.
He also stands out from his predecessor on climate change. It added the words “on a livable planet” to the World Bank's mission.
As well as visiting Australia on this trip, he has also been to Fiji and Tuvalu where he saw it Devastation due to climate change first hand
With this background – and access to all of the World Bank's facts and figures – he understands the lived reality of individuals's lives and the intense threats facing the planet.
Banga's top priorities
This week the president said “jobs“It was his top priority.
In just over a decade, 1.2 billion young people worldwide can be of job-seeking age, in keeping with figures presented to the think tank. Lowe Institute. With the present forecast of 400-500 million jobs, there is a big gap.
This means there may be an urgent have to create jobs in order that these youths don’t turn into an issue for displacement, drugs or conflict.
We need “governments, philanthropists and multilateral development banks to work together” to create more jobs, Banga said.
It is a reminder of why it is crucial for a developed country like Australia to take a position in development aid to construct a stable, prosperous region and the broader world.
Tackling global poverty is precautionary. It is cheaper and easier to take a position in electricity, health care and education now than the prices of instability or chaos later.
The excellent news is that the world's investment in development has led to a rapid reduction in global poverty Since 1981. Banga has a message for Australia.
Ultimately the World Bank is an instrument that reflects the ambitions of the people on whose generosity it depends, and the further development we aspire to.