Ajay banga world bank why america has has always had its nominee president

New Delhi. Indian-American executive Ajay Banga has been nominated by US President Joe Biden to become the new President of the World Bank. Now his election for this post will be a mere formality. Because the post of president has traditionally been with America. There have been 13 presidents of the World Bank so far and all have been American citizens. The only exception in this was Bulgarian citizen Kristalina Georgieva. Kristalina served as the acting President of the World Bank in the year 2019. This relationship between America and the World Bank President is not a coincidence.

According to the Global Economy report, America world Bank is the largest shareholder. The country holds the largest 16.35 per cent stake in the bank and more than 15 per cent votes. The US is the only country that has veto power on certain changes in the bank’s structure. A report in the Wall Street Journal describes the US dominance of the World Bank, which ‘uses this position as a vehicle to advance US economic interests, power and development priorities around the world.’

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America has been dominant since the beginning
In fact, America Till the year 2011, did not face any challenge for the post of President. After this, when the system was made a major change in the World Bank’s system for a ‘transparent, merit-based process’. The birth of the World Bank provides another reason for US dominance. The World Bank was established at the end of World War II, which devastated European economies, but led to the rise of America as an economic superpower. America bought the most shares. With this America took control of 35.07 percent voting rights and invested heavily in the bank.

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In its early years, the World Bank focused on the reconstruction of Western Europe. America had largely escaped the tragedy of the war and was in a position to play the role of its leader. On the other hand, according to an informal agreement, the Europeans chose to lead the International Monetary Fund (IMF). IMF was also established along with the World Bank. Although all the managing directors of IMF have been European.

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This is how the president is elected
The World Bank has a weighted voting system. All member nations receive votes consisting of share votes (one vote for each share of the bank’s capital stock held by the member nation) and basic votes. According to the bank, ‘the basic vote shall be such number of votes which, as a result of equal distribution among all the members, shall be equal to 5.55 per cent of the aggregate of the voting power of all the members’. The chairman is elected by the executive board of directors. It has 25 executive directors, while five are nominated and 20 are elected. Nominations are made on behalf of the Executive Directors, or Governors through the Executive Director. The Executive Director later selects three names and formally interviews them.

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Tags: America, World bank