The World Bank has announced the appointment of Michael Kremer, a Nobel Prize laureate and professor at the University of Chicago, as its new Chief Economist, effective October 1. Kremer’s appointment comes after Indermit Gill’s retirement last month, according to reports.
The 61-year-old economist, who won the Nobel Prize in Economic Sciences in 2019 alongside Esther Duflo and Abhijit Banerjee, was recognized for their experimental approach to tackling global poverty. Prior to this role, Kremer taught economics at Harvard University.
Kremer will step into his new role just ahead of the World Bank and International Monetary Fund’s annual meetings in Bangkok, Thailand.
He is well-regarded for employing rigorous research to devise innovative solutions to real-world problems, often initiating programs that have assisted small farmers and provided millions with access to vaccines and school health initiatives.
“The World Needs Bold Solutions”
Ajay Banga, President of the World Bank, stated in a press release, “Michael has dedicated his career not only to identifying what works in development but also to demonstrating this at scale — and this is exactly the kind of thinking we need.”
Banga emphasized that Kremer joins the team at a time when the world requires bold solutions for urgent development challenges, including creating jobs to meet the aspirations of over 1.2 billion young people entering the workforce in the next decade.
Kremer’s appointment comes as developing countries face rising interest rates and energy prices, exacerbated by the ongoing U.S. conflict with Iran.
These challenges are compounded by a projected 23% decline in official development assistance by 2025, marking the largest drop on record, with the United States contributing the majority of this aid.
Notably, Kremer is the first economist at the World Bank to hold a Nobel Prize prior to his appointment; previous laureates like Joseph Stiglitz and Paul Romer received the honor after their terms.
Kremer is married to Rachel Glennerster, a British economist who has worked for the UK government and the International Monetary Fund. She will become the president of the Center for Global Development in Washington in September 2024.
Both Kremer and Glennerster are members of “Giving What We Can,” a nonprofit organization that encourages its over 10,000 members to donate 10% of their income to effective charities since its inception in 2009.
