Banga Defends World Bank Role on Trump Board of Peace
Banga defended the World Bank's role on the Trump-led Board of Peace for Gaza recovery. He cited a UN resolution and the bank's role as a limited trustee.
World Bank President Ajay Banga defended the organization's participation in the Board of Peace, an initiative led by Donald Trump aimed at the reconstruction of Gaza following a devastating two-year conflict between Israel and militants in Palestine. Speaking at an event hosted by the Atlantic Council in the United States, Ajay Banga emphasized that the bank’s involvement follows a United Nations Security Council resolution that specifically called on international financial institutions to cooperate with the board to facilitate recovery efforts.
The Board of Peace, chaired by Donald Trump, includes high-profile figures such as United States Secretary of State Marco Rubio, and presidential advisers Jared Kushner and Steve Witkoff. The initiative was first proposed in September and held its inaugural meeting in February, where Donald Trump announced that various nations had already pledged $7 billion toward a reconstruction fund. However, the scale of the task is immense, with some estimates suggesting that rebuilding the territory could cost as much as $70 billion. Many questions remain unresolved, including the disarmament of militants and the withdrawal of troops, alongside the flow of humanitarian aid.
Addressing protesters who called for his resignation from the board, Ajay Banga clarified the specific nature of the World Bank's engagement.
"Our role on the Board of Peace is very clear. We are a limited trustee of a trust fund that has been created into which these governments want to put in money to help the reconstruction,"
Ajay Banga noted that while the bank will manage the funds, the Board of Peace will be responsible for determining the allocation and recipients of the capital. This effort builds on existing initiatives, including a Palestinian expert group established two years ago that features representatives from Jordan, Palestine, Egypt, Israel, and Europe.
The World Bank has also taken steps to stabilize the local financial sector by investing in the equity of the Bank of Palestine to ensure its viability post-crisis. Ajay Banga stated that the ultimate objective is to restore physical and digital connectivity between Gaza and its neighbors while facilitating regional trade.
"So what we're trying to do, actually, is to be a constructive part in that role, (to) try to follow that ... UN high council (Security Council) resolution,"
