World Bank President Ajay Banga has stated the institution aims to play a constructive role in Gaza’s recovery following the two-year war. This announcement comes after protesters disrupted Banga’s speech at a Washington think tank, urging him to resign from the Board of Peace. Banga noted that a United Nations Security Council resolution has called on the World Bank and other financial institutions to collaborate with the Board of Peace to provide financial resources for Gaza’s reconstruction, including establishing a dedicated trust fund.
Banga clarified that the World Bank’s role on the Board of Peace is that of a limited trustee for a fund where governments contribute to support reconstruction. While the bank would manage the funds, the Board of Peace would determine their allocation. The Board of Peace initiative was proposed by Donald Trump in September, with an initial meeting in February announcing $7 billion in contributions to a reconstruction fund. However, the total reconstruction cost for Gaza, heavily damaged after two years of war, is estimated to reach up to $70 billion.
Speaking at the Atlantic Council event, Banga emphasised the UN resolution’s guidance to work with the Board of Peace, adding the World Bank is taking separate actions to support Gaza. The World Bank, a global financial institution that provides loans and grants to governments of low- and middle-income countries for the purpose of pursuing capital projects, created a Palestinian expert group two years ago involving representatives from Jordan, Palestine, Egypt, Israel, the U.S. and Europe.
Furthermore, the bank invested in the equity of the Bank of Palestine to ensure its financial stability during the crisis. Banga stated the World Bank’s goal is to reconnect Palestine and Gaza with its neighbours digitally and physically, as well as to facilitate trade, in line with the UN resolution. Questions remain regarding the disarmament of Hamas, the withdrawal of Israeli troops, the fund’s overall size, and humanitarian aid flow.
