World Bank president: list of reforms African states should be demanding

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.

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What does Javanka mean for the World Bank?

Politico has the biggest sensation of the week when it reported on Monday about Ivanka’s prospects for the World Bank. In the topsy turvy world of today’s politics its headline missed the mark. Rather than leading with “Ivanka Trump not under consideration for World Bank chief” the headline should have been:

“Ivanka is overseeing the internal search for a nominee to lead the World Bank”

That is an amazing statement. The search for the World Bank president nominee by the US Administration is being headed by an unpaid aide with no background in economics, finance, or development! If I were in the Treasury I would not not be amused.

Javanka – as the combination of Jared and Ivanka is known – will have their hands full trying to figure out a nominee. Or will they? They could just pick a loyal friend or someone whom the Trumps owe a favour. That wouldn’t be too different than the processes to pick some of the past Presidents. But in today’s climate and with this US Administration that is less likely to a lifelong Republican stalwart and more likely to be someone who has been on the fringes of politics for most of their life. Continue reading

Ocampo hits back

Ocampo has finally flexed his muscles in the WB President race, arguing in a FT interview that Jim Yong Kim “lacks expertise”. Ocampo says:

“I think in terms of development expertise it is quite clear to everyone that the finance minister of Nigeria and myself stand above the US candidate, who has very narrow expertise in development. He is an excellent physician, nobody denies that, but we’re talking about a development institution.” Continue reading

Kim calls for “an open, inclusive World Bank”

As US nominee Jim Yong Kim sets off on a global “listening tour” to promote his candidacy, he has declared his priorities for the Bank in an FT op-Ed. While thin on actual policy content, Kim gives strong support for “an open, inclusive World Bank” which “must give developing nations a greater voice.” He also attempts to calm the ‘anti-growth’ storm, by confirming that he recognises “that economic growth is vital to generate resources for investment in health, education and public goods.” Continue reading

Will Obama choose to make history ?

The race for the next President of the World Bank’s Group just got a whole lot more interesting with the formal nomination of former Managing Director and current Finance Minister of Nigeria; Ngozi Okonjo Iweala, and, the less exciting, former Colombian Finance Minister Jose Antonio Ocampo . Ngozi’s nomination will, no doubt, make it very hard for the US Administration to put forward a credible nominee that can match her skill and reputation, even if they nominate a woman. Most of the representatives of the developing countries on the board of the World Bank are expected to line up behind Ngozi. The one and only thing missing from Ngozi’s CV is a US nationality. The Obama administration will certainly Continue reading