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
In his turn at the presentations organised at CGD, José Antonio Ocampo expressed his view on the Bank, being quite critical of the issues in which, according to him, the institution has not performed well, like country ownership and cooperation with other international organisations. He also expressed the need to change the culture of the Bank in order for it to become a clients-based organisation, and criticised the US for not increasing capital or allowing other countries to do so.
On country ownership he said: Continue reading
Ngozi gave a speech and took part in a question and answer session at CGD recently. She was her usual effusive and passionate self, although often a little vague when it came to policy positions. The mainstream press has picked up on her campaign motifs: she put a large emphasis on job creation (although her actual record on job creation is called into question here), and on the Bank delivering finance/results/technical assistance faster. The Washington Post covers some more things here, including her insistence that US capital contriutions will not be threatened by a non-US candidate.
On some issues she seemed to demand significant changes at the Bank. She said the Bank should look at the African Development Bank for lessons on selecting leaders, seemingly endorsing double-majority voting, and said there needs to be a serious conversation about increasing capital contributions and voting shares for MICs.
There were however some other interesting points I think should be brought to light. These seem to indicate that on many issues she is sticking to already well-developed Bank approaches, and reaffirm her status as the ‘establishment choice’. Reformers and revolutionaries beware. On other issues she raised various red flags for campaigners: Continue reading
“.. the World Bank won’t move far in that direction so long as its president is imposed by fiat of the US. In order to work effectively at the sub-national and international level, the World Bank needs to be a genuinely international organization, run by and for the whole world, rather than being viewed as a means for the US to project “soft power” in Africa and elsewhere. “
My former colleagues at the Bretton Woods Project have just published their bi-monthly Bretton Woods Update with a cover article summarising some of the key issues that whoever wins the Presidency will have to tackle. Worth reading in full, but here are some snippets, the first on the rise of emerging markets:
One of the most pressing issues is how to work effectively with large emerging market countries. Continue reading
Despite the fractious disagreement and impugning, there is full agreement that the Bank needs a new direction, in a new world. Continue reading