WHEN economists from the World Bank visit poor countries to dispense cash and advice, they routinely tell governments to reject cronyism and fill each important job with the best candidate available. It is good advice. The World Bank should take it.

In appointing its next president, the bank’s board should reject the nominee of its most influential shareholder, America, and pick Nigeria’s Ngozi Okonjo-Iweala.

The World Bank is the world’s premier development institution. Its boss needs experience in government, in economics and in finance (it is a bank, after all). He or she should have a broad record in development, too. Ms Okonjo-Iweala has all these attributes, and Colombia’s José Antonio Ocampo has a couple. By contrast Jim Yong Kim, the American public-health professor whom Barack Obama wants to impose on the bank, has at most one.


Ms Okonjo-Iweala is in her second stint as Nigeria’s finance minister. She has not broken Nigeria’s culture of corruption—an Augean task—but she has sobered up its public finances and injected a measure of transparency. She led the Paris Club negotiations to reschedule her country’s debt and earned rave reviews as managing director of the World Bank in 2007-11. Hers is the CV of a formidable public economist.

Mr Ocampo was also finance minister, though his time in office, 1996-98, saw the budget deficit balloon. He ran the mildly statist UN Economic Commission for Latin America and the Caribbean. His is the CV of the international bureaucrat.

Mr Kim, the head of a university in New England, has done a lot of good things in his life, but the closest he has come to running a global body was as head of HIV/AIDS at the World Health Organisation—not a post requiring tough choices between, say, infrastructure, health and education. He pioneered trials of aid programmes before they became fashionable and set up an outfit called Partners in Health which does fine work in Haiti and Peru. But this is a charity, not a development bank. Had Mr Obama not nominated him, he would be on no one’s shortlist to lead the World Bank. (Indeed he is a far worse example of Western arrogance than Christine Lagarde, whom the Europeans shoehorned into the IMF job last year: the French finance minister plainly had the CV for the job.)

Ms Okonjo-Iweala is an orthodox economist, which many will hold against her. But if there is one thing the world has discovered about poverty reduction in the past 15 years, it is that development is not something rich countries do to poor ones. It is something poor countries manage for themselves, mainly by the sort of policies that Ms Okonjo-Iweala has pursued with some success in Nigeria.

Mr Kim’s views on development are harder to divine. But what can be gleaned is worrying. In an introduction to a 2000 book called “Dying for Growth”, he wrote that “the quest for growth in GDP and corporate profits has in fact worsened the lives of millions of men and women”, quoted Noam Chomsky and praised Cuba for “prioritising social equity”. Were Mr Kim hoping to lead Occupy Wall Street, such views would be unremarkable. But the purposes of the World Bank, according to its articles of agreement, are “to promote private foreign investment…[and to] encourage international investment for the development of the productive resources of members.” The Bank promotes growth because growth helps the poor. If Mr Kim disagrees, he should stick to medicine.

Ready. Steady. Ngo

For almost 70 years, the leadership of the IMF and World Bank has been subject to an indefensible carve-up. The head of the IMF is European; the World Bank, American. This shabby tradition has persisted because it has not been worth picking a fight over. The gap between Mr Kim and Ms Okonjo-Iweala changes the calculation. It gives others a chance to insist on the best candidate, not simply the American one. Mr Ocampo should bow out gracefully. And the rest of the world should rally round Ms Okonjo-Iweala. May the best woman win.


http://www.economist.com/node/21551490

I guess it is safe to conclude that folks at the Economist are very effusive about Madam. Org/as/mic maybe

She is a very accomplished woman though, proud of her accomplishments.

But win or lose, he who pays the piper dictates the tune at the end of the day.

@Kilode?! I was proud when Ngozi was nominated and initially got excited when Obama made his own choice. If Ngozi gets the job no one will blame Obama who could have presented a more formidable candidate. Obama's choice may actually be an endorsement of Ngozi.

Having said that, I am completely disappointed that Ngozi did not turn down her nomination but is actively trying to get the job! Nigeria needs her more than the world bank does. I thought she was a biafran veteran who had been transformed into a nationalist - how wrong was I.

As much as I generally tend to agree with the Economist's arguments, in this case I don't.

Cronyism arguments sort of assume that Person A is appointing Person B for reasons other than pure merit to manage collective property.

But again, the WB is not collective property...it is largely bankrolled by the Western world. So I don't think anyone should be too offended if they appoint whom they see fit to manage it. After all, it isn't your own money being used, is it?

You may be more qualified than my cousin to manage my business, but surely if it is my property I can choose whoever I like w/o answering to anyone.

Finally, regarding qualifications, sure, Kim is not a PhD level economist. But then again, neither was Wolfowitz and at least a few of the past WB presidents. I don't think anyone is arguing that Kim is completely and utterly unqualified for the job, are they?

Part of the agenda here seems to be the rest of the world wanting to poke their finger in America's eye.

Which is fine of course...but don't then try to couch it in language of "meritocracy", etc, etc.

Just be blunt and say you don't want them to appoint the head of the World Bank any more. In which case, you need to bring out your check book and fund your own organization..

its the WORLD bank we are talking about not bank of america. much as america could be one of the major stake holders, every other country that are stake holders are still stake holders and should make their choice of president based on their preference

It may be called the world bank, but most of the funds come from the West.

Or is it the impoverished third world countries who beg the WB for funds who you claim also fund it?

As Kilode said, he who pays the piper calls the tune

he who pays the piper sure calls the tune but it still doesn't change the fact that they(the impoverished countries like u called them) are stake holders and should be given a level playing ground

How can the guy buying french fries from my burger joint tell me the owner who to appoint?

You are the customer. I am the salesman and owner.

You are only a "shareholder" in my business in that you buy what I sell.

You don't get to dictate who runs the bank unless you put money into it. End of story.

When it comes to money invested, there is no level playing ground. America has more vote than Anybody else in the WB because they contribute more that everyone. It is what it is.

Having said that though, it is not wise to court a PR disaster by throwing your money at peoples faces, same applies to Ngozi's supporters, if they are not ready to back her with funds if she gets the nomination then all this meritocracy talk will come to naught. She will fail.

@Ndu_chuks I don't blame Madam o, it's tough to abandon your ambition for a Nigeria post where you can't really dictate much. Where Tony Anenih and Tompolo can overrule your well thought out policies

The buck still stops at GEJ and PDP's table, there's only so much Madam Ngozi can change. Sad but true. If she gets the job, maybe it will be an opportunity to ride from WB to Aso Rock in the future, hopefully she won't annoy the real Kingmakers in washington before then.

you dont seem to know much about the workings of the world bank.But just note that Nigeria has a voting power at the world Bank and can therefore produce its president.
Lobbying is part of the process and if other countries that have major voting powers see a need to nominate or elect her( a Nigerian) as the case may be,based on her qualification and or diplomatic relations with Nigeria, what would you have America do

ndu_chucks: @Kilode?! I was proud when Ngozi was nominated and initially got excited when Obama made his own choice. If Ngozi gets the job no one will blame Obama who could have presented a more formidable candidate. Obama's choice may actually be an endorsement of Ngozi.

Having said that, I am completely disappointed that Ngozi did not turn down her nomination but is actively trying to get the job! Nigeria needs her more than the world bank does. I thought she was a biafran veteran who had been transformed into a nationalist - how wrong was I.

Does Nigeria really need her? The last time she was here, she helped clear out debts, not by helping restructure things from within but instead getting outsiders cancel our debts, which they did. I am certain every Nigerian is grateful for that. However, she has been back for about 8 months now, and so far, Nigerians are still waiting to see what is in store. Isn't this an opportunity to try someone else?

Barely 2 years ago, some of the very same on here celebrated Segun Aganga's appointment in very similar manner and would have been on here singing him praises if he had been nominated for this position as well. However, he's been serving for all that time and not a single mention of drastic changes he has helped implement in this country.

aguiyi: you dont seem to know much about the workings of the world bank.But just note that Nigeria has a voting power at the world Bank and can therefore produce its president.
Lobbying is part of the process and if other countries that have major voting powers see a need to nominate or elect her( a Nigerian) as the case may be,based on her qualification and or diplomatic relations with Nigeria, what would you have America do

Quick Question. What does Nigeria, and the Nigerian people, gain from having a Nigerian as World Bank President? More WB Loans?

Kobojunkie:

Does Nigeria really need her? The last time she was here, she helped clear out debts, not by helping restructure things from within but instead getting outsiders cancel our debts, which they did. I am certain every Nigerian is grateful for that. However, she has been back for about 8 months now, and so far, Nigerians are still waiting to see what is in store. Isn't this an opportunity to try someone else?

You have a point there. If this lady is being pushed for the WB position and praised by all these nations, she should be a valuable addition to GEJ's cabinet.

She's been a bit disappointing so far in her new position as a minister, lets hope better days are ahead.

ndu_chucks:

You have a point there. If this lady is being pushed for the WB position and praised by all these nations, she should be a valuable addition to GEJ's cabinet.

She's been a bit disappointing so far in her new position as a minister, lets hope better days are ahead.

In my opinion, this post below addresses the highlighted. . .

ekt_bear: Part of the agenda here seems to be the rest of the world wanting to poke their finger in America's eye.

Which is fine of course...but don't then try to couch it in language of "meritocracy", etc, etc.

Just be blunt and say you don't want them to appoint the head of the World Bank any more. In which case, you need to bring out your check book and fund your own organization..

Nigerians are very funny. lol
Part of me wishes that NOI does not get this job, at least to allow some Nigerians to sleep well at night.
Another part of me wants her to get the job, even if to keep those Nigerians awake at night as well! hehehe!

On a serious note, I am totally indifferent.

Why are conspiracy theorists so stupidddd, perhaps they have an overblown image of themselves.

Agenda ko, asunder ni.

Some people shaaaaaa. Everything is always about them. Everyone is after them and their twice a week pum-pum

I guess it is safe to conclude that folks at the Economist are very effusive about Madam. Org/as/mic maybe

She is a very accomplished woman though, proud of her accomplishments.

Pray tell, what accomplishments? MIT and Harvard VS Brown & Harvard x2 vs Notredame & Yale? No ground breaking research paper, no ideological shift whatsoever. Now compare her to Kim's PIH or to what Ocampo did in his home country ( impressive stuff)

Go look at Ocampo's CV and compare with your madame's

That said, she would be a better fit than Kim, Don't know what Obama was thinking . . .

José Antonio Ocampo for (World Bank) president
The former Colombian minister and leading development economist is far and away the most qualified candidate to lead and reform the World Bank


It is truly historic to be engaged in a global debate about who should head the World Bank. For more than 60 years the Bank presidency has been dictated by the US. Finally, the US and the Bank have pledged the institution's next president will be chosen on merit, not hegemony.

On merit, José Antonio Ocampo is far and away the most qualified candidate to lead and reform the World Bank.

Many of the leading media outlets and key development professionals have praised the US in acknowledging the need to change the process and for putting forth Jim Yong Kim but have expressed concern that he may have too narrow a resume to run the Bank, given the many challenges it faces.

Kim would be asked to head an institution that is charged with helping to bring more than 2 billion people living on less than $2 per day out of poverty, while promoting economic growth that generates employment in an environmentally sustainable manner, as well as tackling problems like food price volatility, global climate change, financial stability and public health.

On public health Kim is hands down the best candidate, but is in deep third on the rest. The World Bank not only has to work on this broad set of issues, it is also in need of deep reform. Six years ago the Bank was mired in scandal. Robert Zoellick can be credited for calming things down, but the Bank has not been at the forefront of development. Indeed, it is increasingly becoming eclipsed by the Chinese and other emerging market development banks.

O[b]campo is the only candidate who has the breadth of knowledge and experience to reform the World Bank for these 21st-century challenges. He has managed and reformed major global institutions and government ministries. And, as a leading development economist in academia, he will have the respect of a Bank swarming with economists.[/b]

Between 2003 and 2007 Ocampo served as the UN under-secretary general for economic and social affairs. In that capacity he chaired the UN executive committee on economic and social affairs and headed the UN department of economic and social affairs. He was tapped for that job because of his stellar record in reforming the UN Economic Commission for Latin America and the Caribbean, where he was executive secretary from 1998 to 2003.

From 1989 to 1997 he held a number of senior posts in the Colombian government, including finance minister and chair of the central bank board. In addition, he was minister of national planning, and minister of agriculture and rural development. In all these capacities he is a proven reformer.

Nigeria's Ngozi Okonjo-Iweala is better equipped than Kim to lead the World Bank, but she doesn't have the breadth experience and development knowledge, and is too much of a Bank insider to be able to put in place badly needed reforms.

One of the only things standing in Ocampo's way is his own government. Colombia's finance minister gave Ocampo the go-ahead but only days later said Ocampo's bid was not "politically feasible" because Bogotá is pushing a candidate to head the International Labour Organisation (ILO). The Dominican Republic and Brazil nominated him anyway.

Pressure is mounting on Colombia to change its stance. Last week every major newspaper and television outlet in the country endorsed Ocampo's candidacy – even those most supportive of the government. Some of those articles pointed out that the World Bank is much more important than the ILO, and that a Colombian would never win the ILO job because a Latin American has long held the seat and Colombia has been notorious for its poor treatment of workers under the watch of the candidate put forth.

It has been the developing world that has reduced poverty significantly (often despite poor policy advice from the World Bank). It has been the developing world that has avoided the worst of the financial crisis that originated in the US. It would be ironic for the US to dictate the appointment at the Bank in such an environment – especially of someone who lacks high-level policy experience and is not versed in the broader development agenda.

We must then turn to the two developing country candidates. Ocampo wins. He is a reformer, has managed major global institutions and national ministries, and is arguably one of the most noted development economists of our time.

strangerf:

Pray tell, what accomplishments? MIT and Harvard VS Brown & Harvard x2 vs Notredame & Yale? No ground breaking research paper, no ideological shift whatsoever. Now compare her to Kim's PIH or to what Ocampo did in his home country ( impressive stuff)

Go look at Ocampo's CV and compare with your madame's

That said, she would be a better fit than Kim, Don't know what Obama was thinking . . .

You know I barely made it out of community college, so excuse my excitement. Ivy league no be moin-moin now, especially for someone without a trust fund background

Having said that, I kinda agree that her work as a top WB technocrat is not necessarily a plus in this case. She might be perceived as more of the same by some stakeholders seeking reform.

Kobojunkie:

Quick Question. What does Nigeria, and the Nigerian people, gain from having a Nigerian as World Bank President? More WB Loans?

she can influence more direct foreign investment into Nigeria and africa at large.

That position if well harnessed will be a plus to our voice as a nation on global issues

aguiyi:
she can influence more direct foreign investment into Nigeria and africa at large.

That position if well harnessed will be a plus to our voice as a nation on global issues

How exactly can the President of the World bank do this? Are you certain you are not confusing the responsibilities of the World Bank President with those of the President of Nigeria?

All I gotta say is...don't get your hopes up. Certain disappointments are avoidable. Heh.

she can,its all politics.
you may also ask me how Washington can influence the president of Nigeria

aguiyi: she can,its all politics.
you may also ask me how Washington can influence the president of Nigeria

Washington is GOVERNMENT of A COUNTRY and one country influencing another Country is Politics. However, World Bank is an organization that is government by rules and regulations that are not easily bent.

I would really like to know how you expect a World Bank President draw more investment into Africa? As is World Bank already invests the largest in African Countries. Many of our systems in Nigeria today already depend, and have depended on the World bank for decades as is. So believe me, I am curious as to learn how exactly you expect the world bank to take on the role of Government in Nigeria/Africa.

Kobojunkie:

How exactly can the President of the World bank do this? [s]Are you certain you are not confusing the responsibilities of the World Bank President with those of the President of Nigeria? [/s]

Ode oshi. So if the President of the World's foremost development bank tells you to go invest in her country, assuring you of a substantial ROI, you would second guess her? Knowing full well that her reputation and credibility are on line?

Kobojunkie:

Washington is GOVERNMENT of A COUNTRY and one country influencing another Country is Politics. However, World Bank is an organization that is government by rules and regulations that are not easily bent.

I would really like to know how you expect a World Bank President draw more investment into Africa? As is World Bank already invests the largest in African Countries. Many of our systems in Nigeria today already depend, and have depended on the World bank for decades as is. So believe me, I am curious as to learn how exactly you expect the world bank to take on the role of Government in Nigeria/Africa.

So Washington doesnt operate under laid down rules and regulations? Obama can just wake up and do whatever he wants, flouting conventional rules with impunity?

Go siddon somewhere jo

And besides what is politics? Politics is everywhere my dear, even in the inner corridors of the WB. Politics is the process by which we make collective decisions, deliberatively and coercively , and it includes decisions that border on where and how to direct foreign/western investments

As I was saying . .

aguiyi: she can,its all politics.
you may also ask me how Washington can influence the president of Nigeria

Washington is GOVERNMENT of A COUNTRY and one country influencing another Country is Politics. However, World Bank is an organization that is government by rules and regulations that are not easily bent.

I would really like to know how you expect a World Bank President draw more investment into Africa? As is World Bank already invests the largest in African Countries. Many of our systems in Nigeria today already depend, and have depended on the World bank for decades as is. So believe me, I am curious as to learn how exactly you expect the world bank to take on the role of Government in Nigeria/Africa.

As I was saying:

Kobojunkie:

Washington is GOVERNMENT of A COUNTRY and one country influencing another Country is Politics. However, World Bank is an organization that is government by rules and regulations that are not easily bent.

I would really like to know how you expect a World Bank President draw more investment into Africa? As is World Bank already invests the largest in African Countries. Many of our systems in Nigeria today already depend, and have depended on the World bank for decades as is. So believe me, I am curious as to learn how exactly you expect the world bank to take on the role of Government in Nigeria/Africa.

So Washington doesnt operate under laid down rules and regulations? Obama can just wake up and do whatever he wants, flouting conventional rules with impunity?

Go siddon somewhere jo

And besides what is politics? Politics is everywhere my dear, even in the inner corridors of the WB. Politics is the process by which we make collective decisions, deliberatively and coercively , and it includes decisions that border on where and how to direct foreign/western investments

stranger!!!

aguiyi: she can,its all politics.
you may also ask me how Washington can influence the president of Nigeria

To help you in coming up with a good retort, here is the link to what the world bank does.

http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:20103838~menuPK:1696997~pagePK:51123644~piPK:329829~theSitePK:29708,00.html