In the past, civil society has been quite forceful about what they want in terms of process for selecting a World Bank President, basically it can be summed up as anyone but an American. That battle has been lost.
But now that it is certain that David Malpass will be World Bank president, perhaps NGOs and other civil society groups should think what stance they want to take to the Malpass Presidency. Civil society organisations probably have many different opinions of this – reflecting back on the welcoming reception some of the health-oriented groups gave to the nomination of Kim in 2012. CSOs have always been a diverse bunch.
How will World Bank watchers respond? Will they turn back to 1990s style anti-World Bank opposition at all costs? Will some of them continue trying to work with power rather than against it? Will there be efforts to influence the politics at the board to reduce the harm of the Malpass presidency? Or perhaps they will step back and watch, as they hope the World Bank crumbles into irrelevance under inept and politicised leadership? Continue reading
With the formal process of selection of a new World Bank President kick-starting in a week’s time, it’s imperative to have a view beyond this selection, now that the dust of Jim Kim’s sudden resignation has settled down.
That the process of this selection should be transparent and inclusive goes unsaid. Further, in a statement issued earlier this month, the Bank’s Board of Directors “affirmed its commitment to an open, merit-based and transparent selection process”, except that in the past such commitments met a weak knee when faced with the dictates of United States in the appointment of the previous presidents. Though the clarion call has been given earlier also, it is high time that people beyond the borders of US are considered, particularly that from the global south, and a woman, who has been at the receiving end (both literally as well as figuratively) of Bank’s lending over the past seven decades.
However, if the new president – whether from global south or north, whether selected through an open process or not– is just to fill-in the gap and continues the existing policies and priorities of the Bank as in the previous years well, nothing changes much. In fact, a president from global south will only be used to legitimise what the Bank does!
Here’s the crux of the story known to many – as a lender, the Bank extends loans and technical assistance for economic, institutional or other policy reforms – not always for specific projects – in countries they operate. This influences the public spending of that country and, as always observed globally, paves way for greater private sector involvement and management of State-owned enterprises. In fact, privatization of public utilities has been Bank’s prime agenda since the past many decades. Continue reading
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