Voting arithmetic examined

With all the excited talk about the candidates and their interviews, lets get down to brass tacks – the World Bank Board is going to hold a straw poll today to check into where countries are. While a formal decision is expected to be taken and announced Monday this straw poll is important to see if the developing countries can coalesce around one candidate and make the Europeans think again about the gentleman’s agreement (read: sordid back room deal with the Americans). Who has the numbers?

It is all a bit complicated because the Bank is in the middle of their capital increase, which has not fully gone through all capitals yet. Meaning the voting rights at the board are neither the pre-2010 agreement levels, nor the final 2010 agreement levels. The Bank corporate secretary helpfully published a new table of voting rights by executive director yesterday.

Here’s the arithmetic as far as we know or can guess.

  • US, Canada, Japan for Kim. Lets add Spain/Mexico in that column since the Mexicans declared their preference. And lets Add New Zealand/Australia/South Korea as well since the Korean president has backed Kim.
  • Latin Americans for Ocampo – Brazil nominated him, the Argentinians wouldn’t dream of supporting one of the others at this point.
  • Three African constituencies for Okonjo-Iweala given the African Union support.
Kim 36.7% Okonjo-Iweala 4.9%
Ocampo 5.7% unknown 52.7%

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What are the odds? And where are the Chinese?

We’ve been waiting with bated breath for the odds makers to get active. After all, free-market thinkers tell us that the market always has the best outcomes and sets the right prices. So surely speculation on this blog, and elsewhere in the media, will be wrong and the market will be right. Finally, yesterday, Paddy Power, an Irish bookmaker (betting site), answered the call. Of course they weren’t the only ones; John Cassidy of the New Yorker made up his own odds last weekend. But Paddy Power, with odds set by the frequency of bets, should give us the pulse of the market. Will they be right?

A review of the odds as of 21 Feb:

Larry Summers  4/11
Susan Rice  9/2
Hillary Clinton  9/2
Kemal Dervis  9/1
Tim Geithner  9/1
Ngozi Okonjo-Iweala  20/1
Trevor Manuel  20/1
Lula da Silva  20/1
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