Aaaand we’re back! Kim announces surprise departure, kicking off a sooner than expected leadership challenge

Jim Yong Kim speaking at a Development Conference

Jim Yong Kim announced on 7 January he is leaving the World Bank for the private sector. Credit: World Bank.

World Bank Group (WBG) President Jim Yong Kim announced his resignation on Monday, 7 January, to the apparent surprise of the World Bank’s Board of Directors and senior staff.

In a letter to staff, Kim indicated that his departure was “unexpected”, and that he would be joining a private investment firm, stating that “this is the path through which I will be able to make the largest impact on major global issues like climate change and the infrastructure deficit in emerging markets.” On 9 January, it was announced that Kim will join Global Infrastructure Partners as a Vice Chairman and Partner.

Since Kim’s shock announcement, questions have swirled about why he chose to depart with more than three years remaining on his second term – he was re-appointed in September 2016 – and indeed whether his new role represents a potential conflict of interest, given the Bank’s aggressive promotion of mobilising private finance for infrastructure projects under his leadership. Continue reading