World Bank's vision being redefined: Ajay Banga
Banga noted the need for multilateral development banks to collaborate on climate and digital governance, besides the inclusion of the private sector to facilitate investments into renewable energy in emerging markets
PremiumNew Delhi: World Bank president Ajay Banga said that the bank’s vision was being redefined to eradicate poverty on a livable planet as part of the ongoing reforms agenda, and include climate, fragility, pandemic and other elements that the world’s markets were experiencing. He said that the reforms were a continuing process towards which the institution was deeply committed.
“There's a lot of work going on with the World Bank on the reform agenda. It starts from redefining the vision of the bank, to not just be focused on poverty, although it's important, but to also include a livable planet. The idea is to eradicate poverty on a livable planet and by doing that, we expand the aperture of our view to include climate, pandemics, fragility, things that we are living through, and these are intertwined with poverty alleviation, very difficult to segregate them," he said.
Talking to reporters on the sidelines of the G20 Summit, Banga noted the need for multilateral development banks to collaborate on climate and digital governance, besides the inclusion of the private sector to facilitate investments into renewable energy in emerging markets.
“I just announced a very big partnership with the Inter-American Development Banks on the Amazon on Caribbean climate and are digitizing governance. We’ve also announced a private sector lab where N Chandrasekharan of Tata Sons is one of the members of that project led by Mark Carney and Shriti Vadera, and the idea is to get ideas from the private sector, asset managers and operators on what the bank can do to help facilitate much more investing in renewable energy in the emerging markets," he noted, referring to the Private Sector Investment Lab that is focused on expanding financing for the transition to renewable energy and related infrastructure.
On capital adequacy, Banga said that while a lot of announcements were made in the Summit and the US had put a lot of money through hybrid capital and through portfolio guarantees and contributions through the public goods fund. He added that Germany had also put money on the table and other countries were in discussions.
The New Delhi G20 Leaders’ Declaration on Saturday endorsed the road map for implementing the recommendations of the G20 independent review of MDBs Capital Adequacy Frameworks (CAFs) that could generate an additional $200 billion in lending headroom over the next decade for sustainable development goals (SDGs) and climate finance. In the declaration, G20 leaders acknowledged the need for an international development finance system that was capable of helping developing countries, "in particular the poorest and most vulnerable", surmount economic challenges, including those posed by climate change.
The head of one of the world’s largest multilateral development banks added that more emphasis was needed on the inclusion of women into the reform goals as they comprised more than 50% of the labour, management and social workforce.
“Even now around the world, labour force participation, participation in senior levels of management, or even their compensation or their opportunities for growth and social development are still not where they should be around the world. This is not just a developing country issue. So I'm a believer that we must put 50% of the population in the centre of what we try and do," he added.
Banga said an equal focus must be put on young people, as the developing world had a higher share of the younger population and their aspirations would be the future. “But the trick is to give them quality of life when they are growing up, clear air, water, education, healthcare, once they grow into new jobs. You do those two things for them, and then they become the engine of your future. So our first part is vision and inclusion," he noted.
Banga lauded India’s efforts on inclusion of over 1 billion people of the African Union in G20, calling the move ‘excellent’. “The African continent is full of young people like India. Their aspirations are important for the future. I think this is a really good move and India should be complimented for championing it, but they got support from the other countries," he said.
India in its G20 presidency had set a path for the world amid challenges, he said, noting the country’s efforts on achieving a consensus on all issues.
“I consider the fact that there was a declaration, a tribute to the fact that the G20 leadership found a way to give and take and negotiate and find a right way to agree and set a path for the world. The world is watching, the G20 has got the developed world and the developing countries,"
He went on to add that 80% of the world's GDP was sitting in the room and if they would not agree that would not give a good message. “I actually compliment India, its leadership and the G 20 leaders for being able to make sure that a terrific declaration comes out. There will always be challenges."
"No 20 countries will agree on everything. People will have to look after their national interests. But I am optimistic by the mood I saw in that room" he added.
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