Editorial
World Bank Presidency: Matters Arising
Contrary to expectations that the selection of the World Bank President would be transparent and merit-based, the election, last Monday, of the United States of America (USA) nominee, Mr. Jim Yong Kim as new President, clearly showed that the preference of the super powers in the selection process still prevails.
The entire process appeared tilted more towards politics rather than a search for a position as sensitive as the best candidate for the World Bank top job. This, in our view, is a negation of the agreement reached by all of the bank’s 187 member countries, last year, to adopt a transparent and merit-based process for the position.
The election was precisely a re-enactment of the tradition where US would always produce the Bank President for the singular reason that she is the largest shareholder in the bank.
The World Bank, a family of five international organisations that offers loans, generally to poor countries, came into formal existence on December 27, 1945, following international ratification of the Bretton Woods agreements.
Recently, the Bank has focused its activities on developing countries, in fields such as human, agricultural and rural development, environmental protection, infrastructure and indeed governance.
Loans are accordingly given at preferential rates to the poor countries with the most needs.
But we think it expedient for the US and her allies to review their policies concerning the administration of the World Bank to make for more liberal and transparent and democratic process, particularly now that, for the first time, member nations have come to take keen interest in the bank.
It should no longer be business as usual where European becomes Managing Director of the International Monetary Fund(IMF) and the United States of America will produce the President of the World Bank. This old order does not help the emerging economies.
But defenders of the World Bank contend that no country is under any form of conpulsion to go aborrowing. The Bank provides both loans and grants which are given to countries that have no access to international capital markets. This is why emerging economies ought to look inwards and be more proactive in economic development and good governance.
Be that as it may, The Tide believes that such a flawed selection process of the presidency of the bank, is capable of strengthening the fears of the developing nations and puts a question mark on the sincerity of America and Europe on claims to champion merit-based appointments in democratic systems.
The development has also raised a moral question on the integrity of US and other advanced democracies who refer to those who promote undemocratic ideals in other parts of the world as despots.
We urge emerging economies such as China, India and Brazil, and others in Africa to be challenged by this show of naked power, and in sustained unity intensify pressure on the United States and Europe to throw open the selection process for both the bank and the IMF.
This, we believe, can be achieved when developing and emerging economies are able to develop their economies to the extent that they can no longer be ignored when global financial issues are discussed.
While we join the rest of the world in congratulating the new President of the World Bank, Mr. Jim Yong Kim, he should see his new position beyond his area of specialisation and move the World Bank forward.
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