The World Bank’s Board established as its third criterion ”the ability to articulate a clear vision of the World Bank Group’s development mission.”
It’s not a prospective candidate’s fault they have to do it: the Board’s word salad Forward Look strategy, and the IBRD/IFC capital package agreement as articulated in the Sustainable Financing for Sustainable Development Paper would challenge a Kennedy, an Obama, and even a Churchill. A PowerPoint would be so long with small-font slides that Donald Trump would go back to watching FoxNews.
“Our Dream is a world free of poverty” was a clear message Jim Wolfensohn used to inspire the Bank and its partners. Eventually its sentiment became the headline of both the MDGs and SDGs, and the first goal of each. Freeing the world of poverty has inspired development practitioners, official development agencies, and civil society organizations. Dr Kim’s Twin Goals embraced and expanded the poverty eliminated goal. But the expanding shared prosperity lacked the clarity of meaning, and inspired little agreement on how, so that the “Twin Slogans” got little traction as a lodestar with practical actions attached. Various attempts to be practical, like “Cascade” were advanced, but haven’t won universal favor. Dr Kim’s Human Capital Index was another framing, and reflected (some) research and his own proclivities and comfort zone. Inside the Bank, there’s resentment about yet another framework for client dialogue. The Bank’s external critics have seized on it as abandoning a rights-based approach, obscuring long-standing critiques of Human Capital Theory (HCT) and its notion of ‘capitalisable humans’, seeking to shame, and ignoring income inequality within a country. Continue reading →
As Jim Kim enjoys his last day at the helm of what he obviously considers an organisation of fairly limited influence, it is a good time to do a bit of stock-taking of our own.
One could of course say many things about the doctor’s reign at the Bank (and I would in fact invite you, dear reader, to do so in the comments section below). Given his proud mention that he had ‘read up one side of Marx to the other’ and his near religious faith in the private sector’s miraculous metamorphosis into a benefic development actor, one hopes he was a more attentive medical student.
He at least seemed to be more engaged in whatever management consultancy books he used to assist him in convincing shareholders to agree a capital increase in the absence of any significant structural changes to the way the organisation works. In light of well-documented concerns within the Bank about the lack of focus on development outcomes and the pernicious impact of counter-productive staff incentives, this seems indeed quite an ‘accomplishment’. Perhaps he is right in asserting that it is the right time to depart and, literally, capitalise on the work he has done in making the world’s most important public bank ever more like one of the private sector firms he so admires.
While much has been written about the negative consequences of his, er… less-than-stellar, management acumen, his trend toward centralisation and exclusion of opposing views, to me the most significant element of his legacy is his energetic contribution in turning the Bank further away from its development mandate and into a poster-child for corporatized and financialised development (if one can use this word here). Continue reading →
Who do you think would be the best non-US candidate? Participate in the poll here
While much of the media coverage since Jim Yong Kim’s resignation has fixated on who the Trump Administration will pick as its nominee for World Bank president (see here for odds of favourites – including US passport holders Indra Nooyi, David Malpass, Ray Washburne, Dame Nemat Minouche Shafik and Dina Powell), the notion that it’s time for a non-American to lead the Bank has increasingly entered the public discourse as the Bank nears its 75th birthday, with a number of op-eds calling for an end to the American monopoly of the Bank’s presidency (for examples, see here, here and here).
Let’s be frank: the odds still favour the appointment of an American nominee. But a less-than-satisfactory US nominee could put pressure on key Bank shareholders who have historically supported the US-backed candidate (namely Japan and European shareholders, with the latter supporting the US nominee in return for a European remaining at the helm of the IMF). Any member of the executive board will be able to nominate candidates from 7 Feb. The lingering question is, will non-US executive directors dare?
Civil society has long favoured an open application process; after Kim’s resignation, the World Bank’s staff also backed this demand. However, as the Board has made clear that candidates need to be nominated by executive directors, this will limit the scope of how ‘open’ and ‘transparent’ the process actually is.
In lieu of a completely open process, the nomination of a large number of qualified candidates by World Bank executive directors is the next best thing; yet, whispers from DC suggest this is unlikely, and that various members of the Board are angling for the ‘least bad’ US nominee. Continue reading →
Now that the initial puzzled excitement over Jim Yong Kim’s abrupt resignation and short notice has abated, and the fun speculating over replacements has passed, the tough work of selecting a suitable successor must begin.
Civil society and journalists can gossip about why and why now, and question whether his rumored $20mn signing bonus is appropriate for a man without any skills or experience in infrastructure, investment, or private equity. Fine, but that’s not as important as finding someone excellent to head up the Bank Group starting this spring less than two years after he was given an undeserved second term.
Governments, I hope, are looking at suitable candidates—women and men—for these challenging, anti-multilateralism times, and civil society is watching. So are World Bank Group staff.
But first things first: let’s flesh out the criteria that the Bank’s Board of Executive Directors have announced for a transparent, open, and merit-based appointment. Yes, we’ve heard that before, and as Lant Pritchett famously observed in 2017 when Dr Kim was reanointed, “this time is last time’s next time.” Will we be fooled and disappointed again? Continue reading →