Rumors of a World Bank board negotiated deal have been popping up all over the place so this isn’t much of a surprise.
Embattled World Bank President Paul Wolfowitz will resign at the end of June, his leadership undermined by the generous compensation he arranged for his girlfriend. His departure was announced by the World Bank board.
James Pethokoukis is thinking about a Post-Wolfowitz Wold Bank.
As a U.S. News article outlined last year, the World Bank is a deeply troubled institution where corruption may have meant the loss of $100 billion or more over the years. And it’s hard to see what the $20 billion in loans and grants it makes every year are accomplishing.
Middle-income countries can tap global financial markets if they need a loan, and the aid money seems to be making little difference in the world’s poorest countries. From 1980 to 2002, according to an analysis by the Heritage Foundation, 23 of 45 sub-Saharan African countries experienced negative compounded economic growth, when adjusted for inflation. Just three nations saw growth over 4 percent.
Perhaps new leadership and a new mission are needed. Political scientist and geostrategist Thomas Barnett, author of Blueprint for Action, says that perhaps the World Bank could focus instead on post-conflict and post-disaster recovery.
I’m not holding my breath.
Update:
Thomas P. Barnett suggests a successor:
Now that the Wolfowitz drama seems over, let me be among the first to suggest Robert Zoellick is our man
Check the Wikipedia entry for background on Zoellick.
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