World Bank President Ajay Banga emphasized the need for the institution to accelerate its processes and simplify operations amid rising global polarization. Speaking at the Lowy Institute in Sydney on Tuesday, Banga shared insights from his visits to 27 countries, spanning from Peru to Tuvalu, since assuming his role over a year ago.
Banga’s recent visit to Tuvalu in the South Pacific marked the conclusion of his extensive tour aimed at understanding the challenges faced by various regions under the Bank’s purview. “While aspirations are universal, we live in a world increasingly divided and defined by extremes,” Banga said, stressing the urgency for the World Bank to be “faster, simpler, and more impact-driven” in response to the growing needs of these countries.
During his meetings with Pacific Island leaders in Fiji, Banga learned that small island nations often struggle to meet the stringent requirements set by the World Bank. His visit highlighted issues such as understaffed healthcare facilities battling rising rates of non-communicable diseases like diabetes—issues that underscore the Bank’s shift toward prioritizing job creation. Among the World Bank’s key goals is providing affordable healthcare to 1.5 billion people by 2030.
Banga stressed that global challenges like climate change, inequality, and fragility are deeply interconnected. “The Pacific Islands are a microcosm of global forces at play,” he noted, highlighting that this region, severely impacted by rising ocean temperatures, is also one of the most dependent on aid.
Reforms within the World Bank over the past year are already yielding results, Banga said, citing a streamlined corporate scorecard that has reduced the Bank’s goals from 150 to 22, and cut project approval times by three months on average. Additionally, innovative strategies to extend the Bank’s balance sheet have unlocked $120 billion in new lending capacity over the next decade.
Banga underscored the need for collaboration between governments, philanthropies, and multilateral development banks to address the employment gap in emerging markets. Over the next decade, 1.2 billion young people will enter the workforce, but only 420 million jobs are projected to be available.
He concluded by calling for a “significant replenishment” of the International Development Association (IDA) in December, highlighting its critical role in supporting the world’s poorest nations.
