Tag: World Bank

 

What WOULD It Take for the US and Europe to Give Up Control of World Bank and IMF Leadership?

Blog Post

This is a joint post with David Roodman.

The Dominique Strauss-Kahn debacle has unexpectedly forced the first leadership turnover at a Bretton Woods institution since the global financial crisis—the first leadership transition in what we might call the G-20 world. The tacit deal that has long put an American atop the World Bank and a European in charge of the IMF, rooted in the geopolitics of the 1940s, looks more archaic than ever. That’s why this time around, the calls have grown even louder to make the leadership selection process of the World Bank and IMF open, transparent, and meritocratic. Owen Barder suggests on his widely read blog that transparency and merit are key to maintain the reputation and relevancy of these international institutions, and Nancy Birdsall agrees that the decision needs to be based on merit, not nationality. The Financial Times and others news media say that it is time for everyone to acknowledge that we are in the 21st century with several emerging powers that must have a larger role in the Bank, the Fund and other multilateral organizations. One of us (Vij) has made this argument too, constructing a model of global governance that factors in GDP and population as of 2011, not 1941.

Why Don't the Bretton Woods Sisters Offer Risk Insurance? (Could Governance Be Part of the Problem?)

Blog Post

Why have the IMF and the World Bank been so backward on risk management products -- an issue Guillermo Perry explores in a forthcoming CGD book? What is it about their governance, mandate, instruments and/or human nature that leads them like horses to water to lending, even defensive lending, during good times, in effect inviting them, for lack of prior development of insurance and savings products, to "indulge" in a new round of lending in bad times?