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June 20, 2012

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Afrophile

The author seems to take for granted the premise that a strong World Bank is desirable. If the bank's influence is waning and nobody except disgruntled Bank staff is complaining, what's the problem? It seems that developing country governments have better options. Why not relieve the public of the burden of funding the Bank and let it wither into oblivion?

Smitkam

I was deeply puzzled -- saddened -- when the WB started doing Structural Adjustment Loans, which struck me as an appropriate function for the IMF or the Club of Rome or other institutions. The WB had neither the capitalization nor the orientation to such "macro" programs. Nitty-gritty project planning and implementation, things like roads and water, were really useful in some countries where an outside monitor (if not outside expertise) helped see things got built and built well. Sure, under Marcos the Philippines could plan and build roads. But corruption meant that even that in front of his family home was done poorly.
Then there's country focus: should the WB be so involved in China?
Third, a point (I think) you make, strengthening local development institutions. Back in my banking days in the late 1970s, the Brazilian national development bank was already bigger than the World Bank. At that point however the WB still had a wealth of human capital even if it couldn't do much for Brasil in terms of its financial capital. But the WB can still attract young and really bright economists and technicians from the developing world -- and that's a big pool. I met an example last month. The key question: will the Bank put them to good use?

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So in the cited Diagnostic Report, old bank staffers basically say the WB was better when they were on staff. What a shock!

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