“The World Bank Reimagines Its Vision to Eliminate Poverty on a Sustainable Planet,” Says President Ajay Banga at G20 Summit. During the New Delhi G20 summit, World Bank President Ajay Banga unveiled ongoing reforms that are reshaping the institution’s mission, emphasizing the eradication of poverty within the context of a sustainable planet.
Banga highlighted the broadening of the World Bank’s vision beyond poverty alleviation to encompass environmental sustainability. He explained that the goal is to eradicate poverty while acknowledging the interconnectedness of issues like climate change, pandemics, and fragility, making it challenging to separate them from poverty alleviation efforts.
As a former executive chairman of Mastercard, Banga stressed the importance of collaboration among multilateral development banks in addressing climate change and digital governance. He also emphasized the inclusion of the private sector to facilitate investments in renewable energy in emerging markets.
Banga announced significant partnerships, including one with the Inter American Development Banks focused on the Amazon region and Caribbean climate issues, as well as the establishment of a private sector lab, with participation from N. Chandrasekharan of Tata Sons, to gather input on how the World Bank can promote increased investment in renewable energy in emerging markets.
The Private Sector Investment Lab is dedicated to expanding financing for the transition to renewable energy and related infrastructure.
The New Delhi G20 Leaders’ Declaration endorsed a roadmap for implementing recommendations from an independent review of multilateral development bank capital adequacy frameworks (CAFs), potentially generating an additional $200 billion in lending capacity over the next decade for sustainable development goals (SDGs) and climate finance.
In the declaration, G20 leaders recognized the need for an international development finance system capable of assisting developing countries, particularly the poorest and most vulnerable, in addressing economic challenges, including those posed by climate change.
Banga emphasized the central role of women in these reforms, as they comprise over 50% of the labor force, management, and social workforce worldwide. He also stressed the importance of focusing on young people, particularly in the developing world, to provide them with a quality of life that includes clean air, water, education, and healthcare, thus harnessing their potential as future engines of progress.
Banga praised India’s efforts to include over 1 billion people from the African Union in the G20, emphasizing the importance of addressing the aspirations of young populations in both India and Africa.
During his meeting with India’s finance minister, Nirmala Sitharaman, Banga expressed anticipation for Volume 2 of the expert group report on strengthening multilateral development banks, set to be submitted during the 4th Finance Ministers and Central Bank Governors Meeting in Morocco in October. The meeting also discussed the creation of a market structure for maximizing social impact through corporate social responsibility initiatives.
