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The World Bank - Hats off to Ngozi

2012-04-03 11:27:19

A golden opportunity for the rest of the world to show Barack Obama the meaning

of meritocracy

Mar 31st 2012 | from the print edition

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 Jos 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.

from the print edition | Leaders