As the World Bank is expected to select a new
president, we discuss what challenges the institution is facing.
The
next president of the World Bank is expected to be named next week, and for the
first time the US is facing a real challenge over the bank's leadership.
The
World Bank is made up of 187 nations. It distributes billions of dollars in
loans each year to developing countries for projects to develop healthcare,
education and infrastructure.
Its
official goal is to reduce poverty, but a number of critics argue that the
so-called "free market" policies the Bank insists upon in return for
the loans are often harmful to economic development. They argue the policies
can often exacerbate the conditions that produce poverty in the first place.
One of
the strongest criticisms of the World Bank is the way it is governed. A small
number of economically powerful countries provide most of the institution's
funding and get to choose the leadership and senior management. As a result,
critics argue, their interests - and especially those of the US - are
prioritised.
This
year an attempt is underway to change that.
The
candidates in the running for the World Bank's top job are: Ngozi
Okonjo-Iweala, who is the current Nigerian finance minister and a former
managing director of the World Bank. She has the endorsement of the African
Union.
Jose
Antonio Ocampo is Colombia's former finance minister and was nominated by
Brazil. A former UN official, he says he would put emphasis on helping poor
countries manage climate change. Reports are coming in that he is about to
stand aside in favour of Okonjo-Iweala as the developing world's candidate.
The man
nominated by the US however is widely expected to get the job - Dr Jim Yong
Kim. He has a background in public health, having run amongst other things the
HIV/Aids programme at the World Health Organisation.
Jeffrey
Sachs, an economist from Colombia University, nominated himself for the World
Bank's top job and received support from several countries. But he is now
supporting Kim's candidacy because he says he will bring change to the
institution.
So what
challenges is the World Bank facing? And how likely is it to change direction
under a new president?
Joining
us to discuss these issues are: Elaine Zuckerman, the president of Gender
Action, an organisation which aims to ensure that women and men equally benefit from investments made by insitutions
like the World Bank in developing countries. She is also a former employee of
the World Bank; Mark Weisbrot, from the Center for Economic and Policy
Research; and Jelson Garcia, the Asia Program Manager at the Bank Information
Center, an organisation which advocates for public accountability and
transparency in the operations and governance of the World Bank.
FACTS:
WORLD BANK:
-
The
World Bank was created in 1944 at the Bretton Woods Conference
-
The
World Bank is a financial institution with 187 member nations
-
Since
its creation all World Bank presidents have come from the US
-
The
World Bank provides loans and assistance to developing nations
-
In
2010, the World Bank provided almost $59bn in loans
-
Critics
say the conditions imposed on loans hinder the economic progress
-
One
of the world Bank's official aims is to reduce poverty
-
The
World Bank determines poverty as living on less than $1,25 per day
-
The
World Bank says that poverty has dropped from 1,9bn in 1990 to 1,3bn in 2008
-
In
2011, the global population was 7bn, up from 5,3bn in 1990
-
World
Bank poverty statistics do not factor in the global inflation
Source:
Al Jazeera
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