Ajay Banga, President of the World Bank, is in Australia to discuss sustainable economic development and critical infrastructure in the Pacific region.
This marks the first visit by a World Bank leader to Australia in seven years, and Banga aims to position the bank as a force-multiplier for positive change in the Pacific Island nations.
Banga met with Prime Minister Anthony Albanese and key ministers to present his vision and request a renewed Australian contribution to the bank’s development funds.
As the world’s largest and oldest multilateral development bank, the World Bank distributed $US91 billion in loans and grants last year to 75 countries, with a growing focus on the Pacific.
Speaking on Australia’s role in the region, Banga told SMH the potential for synergy:
“Australia already plays a significant role in its neighbourhood, but by working together, we can multiply that impact. Every dollar Australia invests in the IDA becomes four dollars due to our ability to leverage from bond markets.”
Banga’s visit to Australia is part of a broader tour that alos took him to Fiji and Tuvalu, making it the first visit to Fiji by a World Bank president in 50 years and the first-ever visit to Tuvalu.
Banga’s visit is also tied to a push for contributions to the International Development Association (IDA), the World Bank’s facility for the world’s poorest nations.
Australia’s last contribution, in December 2021, amounted to $US369 million as part of a $US93 billion replenishment from wealthy countries. For the new round, targeting $US120 billion over three years, Australia’s contribution is expected to increase to around $US424 million ($650 million AUD).
Since taking office, Banga, appointed by the Biden administration, has made climate action central to the World Bank’s mission, a departure from his predecessor’s stance. In the past year alone, the World Bank allocated $US29.4 billion to climate-related projects, with plans to increase that to over $US40 billion this financial year.
The World Bank has already committed $US2.8 billion to 87 projects in the Pacific, but Banga noted that more work is needed, especially in creating jobs and providing hope for younger generations. Without opportunities, he warned, many would migrate, leaving these nations without the critical mass needed for sustainable development.
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