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 →
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 →
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 →
The Board’s Executive Directors have left their second selection criterion dangerously inadequate.
- “experience of managing large organizations with international exposure, and a familiarity with the public sector”
I would have thought “successfully managing” is what the world expects. Maybe that goes without saying, even if the Board’s recent history on selecting World Bank presidents from available nominees is uneven.
Let’s consider some markers for “successfully”.
Let’s see what results were achieved during the candidate’s tenure, and what can be attributed to him or her. A lot of résumé padding involves taking credit for things others do and would have done anyway, activities done by teams of staff with external partners they know. Examples I can think of are NAFTA2 (aka USMCA/CUSMA), IDA replenishments, ‘clean’ audits. Not eligible would be Brexit, the SDGs, and the Paris Accord (a collective success for negotiations, and a collective ‘incomplete’ for early implementation).
Talent management is what managers primarily do. What is the candidate’s experience at attracting and retaining senior staff? Have non-performers been exited for cause, and have any left because they felt the candidate managed poorly, to the organization’s detriment? Continue reading →
I have written an article suggesting that even though the next President of the World Bank will be an American, the selection of the President offers an opportunity to reform World Bank governance and making the Bank more publicly accountable to all its member states and their citizens.
This can be done if African states offer the US and their European allies a deal. They will agree to support the US nominee for President in return for their agreement to implement the following package of reforms:
- The President will be required to issue an annual public report evaluating how well the Bank is performing against some agreed benchmark; for example, the sustainable development goals. This report will be reviewed by a committee of representatives of the Bank’s stakeholders who will issue their own public report assessing the Bank’s performance against the same benchmark. The advisory council provided for in article 6 of the Bank’s articles of agreement could perform this role.
- The World Bank’s existing independent accountability mechanisms will be strengthened so their findings become binding. These mechanisms investigate claims by communities and groups of individuals who allege that they have been harmed by the actions of the Bank in Bank-funded projects. The Bank, however, is not bound by the findings of these investigations and so may not take the remedial actions required to resolve the problem.
Continue reading →