World Bank President Ajay Banga wants to focus on improving the development lender so that he can earn the right to press member states for more capital, as the new chief looks to expand its role in fighting climate change, pandemics and other crises.<\/p>\n\n\n\n
Banga said in an interview he would wait to seek a capital increase until he has made progress re-focusing the bank\u2019s development lending on more impactful projects, made it more nimble and boosted lending with its existing balance sheet.<\/p>\n\n\n\n
\u201cI don\u2019t want to put the cart before the horse,\u201d Banga told Reuters on Tuesday on his first foreign trip, to Jamaica and Peru.<\/p>\n\n\n\n
\u201cI think a better bank is an important thing\u201d to achieve.<\/p>\n\n\n\n
\u201cAnd then I earn the right to come back ask for a bigger bank,\u201d he said.<\/p>\n\n\n\n
US Treasury Secretary Janet Yellen ruled out a capital increase during congressional hearing in March, but with the caveat: \u201cat this time.\u201d<\/p>\n\n\n\n
Germany\u2019s Development Minister, Svenja Schulze, told the Financial Times that if World Bank reforms are substantial and tangible, \u201cGermany is willing to embark on a discussion about more funding.\u201d<\/p>\n\n\n\n
International development experts say that annual clean energy transition financing needs in the trillions of dollars will require more capital for the World Bank and massive funding from the private sector.<\/p>\n\n\n\n
Banga said his first task in improving the 78-year-old institution is to talk to shareholders about a change to the mission statement to focus on eliminating poverty \u201con a liveable planet\u201d \u2014 codifying its expanded role.<\/p>\n\n\n\n
The current mission statement refers to ending extreme poverty within a generation and promoting shared prosperity.<\/p>\n\n\n\n
\u201cWhat I mean by livable is climate, but also pandemics, and also fragility and food insecurity,\u201d Banga said.<\/p>\n\n\n\n
His first two destinations, Jamaica and Peru, both face climate threats while nearly a quarter of their populations are in poverty.<\/p>\n\n\n\n
\u201cHow do you eliminate poverty if you can\u2019t breathe, you don\u2019t have clean water, you are scared of Covid and you are a refugee, and you can\u2019t eat? I don\u2019t understand how these are either-or. To me, they are together.\u201d<\/p>\n\n\n\n
On Wednesday, he visited a Jamaican greenhouse farm that uses abandoned bauxite mining pits to collect rainwater for drip irrigation, so 20 farmers grow peppers and tomatoes for sale.<\/p>\n\n\n\n
After helping plant some seedlings, he said the project, launched with a World Bank-supported government grant, marries two main goals of his vision: sustainability and jobs.<\/p>\n\n\n\n
\u201cThis would have been an exposed eyesore. Instead, you end up with water, fruits and vegetables. Thats pretty cool,\u201d he said.<\/p>\n\n\n\n
Banga is seeking buy-in from shareholders on the new mission statement but laid out his initial plans to start the transition. This includes promoting more inclusion of women and youth in the bank\u2019s development work, with a strong emphasis on job creation.<\/p>\n\n\n\n
He also said he would start work soon on efforts to harness more private capital, seen as essential for financing climate-related and other projects, for developing countries.<\/p>\n\n\n\n
On several occasions during visits in Peru and Jamaica, Banga said the various divisions of the World Bank Group needed to work together better as \u201cone bank,\u201d saving countries the difficulties of dealing with them separately, and speeding its approval processes.<\/p>\n\n\n\n
He wanted to measure success not by projects approved or dollars committed, but by \u201ctangible things that are reflective of development. How many girls went to school, how many private sector dollars did we crowd in for every dollar we invested? How many people got a better job?\u201d<\/p>\n\n\n\n
Banga also said he wanted to focus the bank on \u201cscalable, replicable\u201d projects in numerous countries, such as Lima\u2019s bus rapid transit system and government-run legal aid centres for women throughout Peru.<\/p>\n\n\n\n