Ref

orm

ing

the

Wor

ld

Ban

k

Orig

ins o

f the

Ban

k

�All

of u

s hav

e se

en th

e gr

eat e

cono

mic

tra

gedy

of o

ur ti

me.

We

saw

the

wor

ldw

ide

depr

essi

on o

f the

193

0s.

We

saw

cur

renc

y di

sord

ers d

evel

op a

nd sp

read

from

land

to

land

�W

e sa

w u

nem

ploy

men

t and

w

retc

hedn

ess�

We

saw

bew

ilder

men

t and

bi

ttern

ess b

ecom

e th

e br

eede

rs o

f fas

cism

, an

d, fi

nally

, of w

ar.�

Hen

ryM

orge

ntha

uTr

easu

rySe

cret

ary

Orig

ins o

f the

Ban

k�

In o

rder

to p

reve

nt th

e �u

nem

ploy

men

t and

wre

tche

dnes

s�th

at

plag

ued

his g

ener

atio

n, M

orge

ntha

u ap

poin

ted

Har

ry D

exte

r Whi

te to

de

sign

the

post

-war

eco

nom

ic o

rder

�Fi

rst i

ncar

natio

n of

the

Wor

ld B

ank

was

the

�Ban

k fo

r the

R

econ

stru

ctio

n of

the

Uni

ted

and

Ass

ocia

ted

Nat

ions

,�m

akin

g no

di

rect

refe

renc

e to

glo

bal p

over

ty�

In Ju

ly 1

944,

del

egat

es fr

om a

ll of

the

45 A

llied

nat

ions

dur

ing

WW

II

atte

nded

the

Bre

tton

Woo

ds C

onfe

renc

e, w

hich

led

to th

e cr

eatio

nof

th

e IM

F, th

e In

tern

atio

nal B

ank

for R

econ

stru

ctio

n an

d D

evel

opm

ent,

and

the

Gen

eral

Agr

eem

ent o

n Ta

riffs

and

Tra

de�

The

Ban

k�s i

nitia

l pur

pose

was

the

reco

nstru

ctio

n of

Eur

ope

Stru

ctur

e an

d Pu

rpos

e�

Cur

rent

ly c

ompo

sed

of fi

ve d

istin

ct b

ut re

late

d in

stitu

tions

: the

In

tern

atio

nal B

ank

for R

econ

stru

ctio

n an

d D

evel

opm

ent (

IBR

D),

the

Inte

rnat

iona

l Dev

elop

men

t Ass

ocia

tion

(ID

A),

the

Inte

rnat

iona

l Fi

nanc

e C

orpo

ratio

n (I

FC),

the

Mul

tilat

eral

Inve

stm

ent G

uara

ntee

Age

ncy

(MIG

A),

and

the

Inte

rnat

iona

l Cen

ter f

or S

ettle

men

t of

Inve

stm

ent D

ispu

tes (

ICSI

D)

�

Pres

iden

t app

oint

ed b

y U

nite

d St

ates

Pre

side

nt (c

urre

ntly

Pau

l W

olfo

witz

)�

Focu

s has

shift

ed fr

om re

cons

truct

ion

to d

evel

opm

ent;

at th

e he

adqu

arte

rs in

Was

hing

ton,

a si

gn re

ads,

�Our

Dre

am is

a W

orld

Fre

e of

Pov

erty

.�

Crit

icis

m o

f the

Ban

k�

The

Ban

k ha

s rec

eive

d cr

itici

sm fr

om a

ll po

litic

al c

amps

, fo

cusi

ng o

n th

ree

mai

n is

sues

1) la

ck o

f rel

evan

ce: i

n a

wor

ld w

ith fr

ee c

apita

l ac

coun

ts, t

he B

ank

is u

nnee

ded

2) la

ck o

f eff

ectiv

enes

s: th

e B

ank�

s pov

erty

redu

cing

pr

ojec

ts h

ave

been

poo

rly d

esig

ned

and

impl

emen

ted,

ex

acer

batin

g, ra

ther

than

alle

viat

ing,

pov

erty

3) la

ck o

f acc

ount

abili

ty: t

he B

ank,

whi

ch re

ceiv

es

mos

t of i

ts fu

ndin

g fr

om th

e de

velo

ped

wor

ld, l

acks

pro

per

over

sigh

t and

acc

ount

abili

ty

Is th

e B

ank

Irre

leva

nt?

�M

uch

of th

e cr

itici

sm a

roun

d th

e B

ank�

s rel

evan

ce e

mph

asiz

es th

at

Mid

dle

Inco

me

Cou

ntrie

s hav

e be

en c

onsi

sten

tly b

orro

win

g le

ss fr

om

the

Ban

k, su

gges

ting

that

they

are

subs

titut

ing

to p

rivat

e ca

pita

l m

arke

ts�

Lerr

ick

sugg

ests

that

net

loan

flow

s hav

e sh

ifted

$30

bill

ion

inth

e la

st

seve

n ye

ars (

inst

ead

of b

orro

win

g $1

4 bi

llion

from

the

bank

in 1

999-

2002

, MIC

s rep

aid

the

Ban

k a

tota

l of $

15 b

illio

n in

200

3-20

05)

�D

e Fe

rran

ti is

mor

e ca

utio

us, s

ugge

stin

g th

at c

ritic

s use

bia

sed

anal

ytic

al te

chni

ques

to e

xagg

erat

e th

e B

ank�

s dim

inis

hing

re

latio

nshi

p w

ith M

ICs (

for e

xam

ple,

star

ting

with

dat

a fr

om a

n at

ypic

al b

ase,

igno

ring

pre-

paym

ent o

f old

er lo

ans,

etc.

) �

Wha

t do

you

thin

k?

8

Expl

anat

ions

for t

he D

ecre

ased

Bor

row

ing

�Th

e cr

eatio

n of

ope

n ca

pita

l acc

ount

s has

led

to a

switc

h aw

ay fr

om B

ank

loan

s to

priv

ate

mar

kets

�

Fina

ncia

l vol

atili

ty a

nd th

e th

reat

of c

risis

has

mad

e in

vest

ors m

ore

prud

ent,

has d

ecre

ased

the

acce

ptab

le d

ebt-

to-G

DP

ratio

�H

assl

e co

sts a

ssoc

iate

d w

ith B

ank

loan

s, su

ch a

s en

viro

nmen

tal a

nd h

uman

righ

ts p

rote

ctio

ns, m

ake

it ex

ceed

ingl

y di

ffic

ult t

o bo

rrow

mon

ey�

The

Ban

k�s n

atio

nal s

over

eign

ty g

uara

ntee

on

its lo

ans

limits

pro

duct

div

ersi

ty, a

s wel

l as t

he v

iabl

e ac

tors

el

igib

le to

rece

ive

loan

s

Mor

e Pr

uden

t Inv

esto

r Beh

avio

r

�Th

ough

rece

nt fi

nanc

ial c

rises

hav

e m

ade

inve

stor

s mor

e ca

utio

us w

hen

accr

uing

fo

reig

n re

serv

es, t

hat c

anno

t exp

lain

why

ne

t cap

ital f

low

s to

emer

ging

mar

kets

are

no

w n

egat

ive

�So

me

of th

is, t

hen,

can

be

expl

aine

d by

�g

radu

atio

n,�

in w

hich

cou

ntrie

s can

switc

h to

priv

ate

capi

tal m

arke

ts fo

r the

ir fin

anci

al

reso

urce

s

11

Has

sle

Cos

ts

�Lo

ng ti

me

laps

e be

twee

n in

itiat

ing

a lo

an

requ

est a

nd h

avin

g it

appr

oved

�A

dmin

istra

tive

burd

en o

f pre

parin

g,

nego

tiatin

g, a

nd im

plem

entin

g B

ank-

fund

ed

proj

ects

�Fi

nanc

ial c

osts

of d

ealin

g w

ith B

ank

requ

irem

ents

to m

eet e

nviro

nmen

tal a

nd

othe

r sta

ndar

ds in

pro

ject

impl

emen

tatio

n11

Has

sle

Cos

ts�

The

Ban

k is

ofte

n un

der f

ire fr

om si

ngle

-issu

e N

GO

s �

In 2

003,

the

Ban

k w

as p

lann

ing

to b

uild

a d

am n

ear B

ujag

ali

falls

, at t

he m

outh

of t

he N

ile in

Uga

nda

�In

tern

atio

nal R

iver

s Net

wor

k, a

Ber

kele

y-ba

sed

NG

O d

edic

ated

to

pre

vent

ing

�dam

s and

the

deve

lopm

ent m

odel

they

repr

esen

t�re

sist

ed th

e da

m, d

elay

ing

its c

onst

ruct

ion

for m

any

year

s�

The

dam

, whi

ch W

olfo

witz

ple

dged

to fu

nd in

200

5, w

ould

pr

ovid

e 25

0 M

egaw

atts

of e

lect

ricity

to U

gand

a�s e

nerg

y-st

arve

d ec

onom

y

�Th

e da

m w

as b

uilt,

and

was

a d

isas

ter,

cutti

ng o

ff to

o m

uch

flow

to th

e N

ile�

Wha

t do

you

thin

k?

13

Are

Has

sle

Cos

ts N

eces

sary

?�

Are

such

�sa

fegu

ard�

cost

s--in

clud

ing

envi

ronm

enta

l and

hum

an ri

ghts

con

cern

s--

reas

onab

le, o

r exc

essi

vely

bur

dens

ome?

�Sh

ould

the

Ban

k ad

here

to th

e re

gula

tions

of

bor

row

ing

gove

rnm

ents

or a

ctiv

ist

NG

Os?

�H

ow c

an th

e B

ank

prom

ote

prud

ent,

envi

ronm

enta

lly so

und

polic

ies w

hile

de

crea

sing

cos

ts?

13

14

Div

ersi

fyin

g Fi

nanc

ial P

rodu

cts

�A

ll B

ank

loan

s req

uire

a so

vere

ign

guar

ante

e�

Som

e ne

w a

ppro

ache

s mig

ht in

clud

e: R

isk

man

agem

ent p

rodu

cts;

loan

s in

loca

l cu

rren

cies

; bor

row

in a

synt

hetic

uni

t (si

mila

r to

the

IMF�

s Spe

cial

Dra

win

g R

ight

s);

rem

ove

the

sove

reig

n gu

aran

tee

�C

reat

e a

new

loan

pro

duct

that

wou

ld li

mit

hass

le c

osts

for b

orro

wer

s with

pre

viou

sly

good

per

form

ance

14

15

Oth

er S

ugge

stio

ns (f

rom

the

CG

D

Rep

ort)

�

Intro

duci

ng d

iffer

entia

l pric

ing

amon

g IB

RD

bor

row

ers,

enco

urag

ing

�gra

duat

ion�

�Si

mila

rly, r

educ

e tra

nsac

tion

cost

s for

bo

rrow

ers w

ith h

ighe

r cre

dit r

atin

gs�

Enco

urag

e in

vest

men

t in

pro-

poor

pro

ject

s an

d gl

obal

pub

lic g

oods

thro

ugh

redu

ced

loan

cha

rges

on

thos

e tra

nsac

tions

15

16

Shou

ld th

e W

orld

Ban

k St

ill

Giv

e Lo

ans t

o M

ICs?

�C

GD

repo

rt ar

gues

that

mai

ntai

ning

fin

anci

al re

latio

nshi

ps w

ith M

ICs w

ill

ensu

re th

e B

ank�

s kno

wle

dge

base

in th

ose

coun

tries

�A

lso,

loan

s to

emer

ging

eco

nom

ies w

ill

prot

ect i

nfra

stru

ctur

e pr

ojec

ts w

hen

priv

ate

mar

kets

cra

sh�

2/3

of w

orld

poo

r liv

e in

MIC

s�

CG

D a

lso

sugg

ests

that

lend

ing

allo

ws t

he

Ban

kto

bein

volv

edin

polic

yan

d16

17

Are

Pol

icy/

Loan

Bun

dles

Ef

fect

ive?

�C

GD

Rep

ort:

lend

ing

with

pol

icy

atta

ched

al

low

s the

Ban

k to

fost

er g

loba

l gov

erna

nce

and

dem

ocra

cy, a

s wel

l as e

ncou

rage

the

impl

emen

tatio

n of

glo

bal p

ublic

goo

ds�

Dan

i Rod

rik: a

rgue

s tha

t aid

con

ditio

nalit

y is

not

a v

iabl

e m

eans

of i

mpl

emen

ting

econ

omic

refo

rm (u

sing

the

exam

ple

of th

e ca

shew

indu

stry

in M

ozam

biqu

e)

�

Wha

t do

you

thin

k?17

18

Is th

e B

ank

Alle

viat

ing

Pove

rty?

�Fr

om a

Ban

k-sp

onso

red

eval

uatio

n of

its a

ctiv

ities

in

Tanz

ania

: �Th

ere

are

cont

inui

ng g

aps b

etw

een

mic

ro-a

nd

mac

ro-e

cono

mic

pol

icy,

spec

ifica

lly in

rela

tion

to: (

1) th

e so

cial

and

pov

erty

impa

cts o

f mac

ro-e

cono

mic

and

st

ruct

ural

pol

icie

s; (2

) the

sour

ces o

f gro

wth

; (3)

the

polic

y im

pact

of a

ltern

ativ

e po

licy

and

stra

tegy

opt

ions

��

Will

iam

Eas

terly

: �Th

e fa

ct th

at [H

IPC

] cou

ld n

ot p

ay

back

zer

o in

tere

st lo

ans w

ith a

40-

year

mat

urity

is it

self

a co

mpl

etel

y co

mpe

lling

sign

that

stru

ctur

al a

djus

tmen

t le

ndin

g ha

d fa

iled�

18

19

Why

has

the

Pove

rty M

issi

on

Faile

d?

�Ea

ster

ly: �

mis

sion

cre

ep�-

-sin

ce it

s in

cept

ion,

the

Ban

k ha

s mov

ed fr

om

supp

ortin

g sp

ecifi

c pr

ojec

ts to

stru

ctur

al

adju

stm

ent,

and

now

to in

stitu

tion

build

ing

�B

road

enin

g th

e sc

ope

of th

e B

ank

mak

es it

in

crea

sing

ly d

iffic

ult t

o m

easu

re it

s ef

fect

iven

ess

19

20

Text

21

Som

e Po

tent

ial S

olut

ions

: Gra

nts

�Sw

itch

from

loan

s to

gran

ts�

Man

y B

ank

loan

s hav

e be

en u

sed

to p

ay o

ff

outs

tand

ing

debt

, rat

her t

han

stim

ulat

e gr

owth

�In

200

2, E

U a

nd U

S ag

reed

that

18-

21%

of

IDA

fund

s wou

ld b

e is

sued

as g

rant

s �

This

cre

ated

the

adm

inis

trativ

e pr

oble

m in

w

hich

gov

ernm

ents

rece

ived

som

e ai

d in

th

e fo

rm o

f gra

nts a

nd so

me

as lo

ans

22

Gra

nts (

cont

.)�

In M

arch

200

5, th

e B

ank

mad

e de

bt

sust

aina

bilit

y th

e ba

sis o

n w

hich

gra

nts w

ere

issu

ed�

Cre

ated

a m

oral

haz

ard

prob

lem

in w

hich

go

vern

men

ts w

ith p

rude

nt lo

an p

olic

ies a

re

pena

lized

and

cou

ntrie

s with

bad

deb

t hi

stor

ies a

re re

war

ded

�A

lso

incr

ease

s the

Ban

k�s a

dmin

istra

tive

syst

em, a

s it m

ust e

valu

ate

each

cou

ntry

�s

abili

ty to

pay

22

23

Gra

nts

�C

GD

repo

rt: b

ase

gran

t fin

anci

ng o

n co

untry

inco

me

�C

reat

e a

fully

gra

nt-b

ased

win

dow

for

coun

tries

with

ver

y lo

w p

er-c

apita

inco

mes

(le

ss th

an $

500)

�

This

will

, in

a se

nse,

prim

e th

e pu

mp

for

larg

er in

vest

men

ts in

thes

e co

untri

es

23

24

Som

e So

lutio

ns: G

loba

l Pub

lic

Goo

ds�

Exam

ples

: ene

rgy

cons

erva

tion

and

glob

al

war

min

g, d

isea

se e

radi

catio

n,

com

mun

icat

ion

tech

nolo

gies

�Fu

ll va

lue

of G

PGs i

s not

refle

cted

in th

e ut

ility

func

tion

of a

giv

en c

ount

ry; t

hus t

he

ince

ntiv

es fo

r a g

loba

l con

sens

us to

take

on

thes

e is

sues

are

stro

nger

than

any

giv

en

coun

try

24

25

Som

e G

loba

l Pub

lic G

oods

�

Mic

hael

Kre

mer

sugg

ests

that

the

Ban

k sh

ould

focu

s on

the

follo

win

g fo

ur g

loba

l pu

blic

goo

ds:

�te

chno

logi

es fo

r the

poo

r, sp

ecifi

cally

rela

ted

to

heal

th a

nd a

gric

ultu

re�

deve

lopm

ent o

f a k

now

ledg

e ba

se th

at a

ddre

sses

th

e im

pact

s of p

ublic

pol

icie

s on

the

poor

�A

fric

an ro

ad n

etw

ork

�R

efug

ee su

ppor

t by

givi

ng fi

nanc

ial s

uppo

rt to

co

untri

es w

illin

g to

acc

ept r

efug

ees

25

26

A G

loba

l Pub

lic G

ood

Trus

t Fu

nd?

�Th

e C

GD

repo

rt su

gges

ts th

at th

e cr

eatio

n of

a tr

ust f

und

to a

lloca

te c

apita

l to

proj

ects

re

late

d to

glo

bal p

ublic

goo

ds w

ould

hel

p co

ordi

natio

n�

The

fund

wou

ld b

e un

derw

ritte

n by

ea

rmar

ked

dona

tions

from

don

or c

ount

ries,

allo

catio

ns o

f Ban

k pr

ofits

, whi

ch w

ould

in

crea

se a

s has

sle

cost

s dec

reas

e �

Cou

ld th

is w

ork?

26

27

Glo

bal P

ublic

Goo

ds a

nd G

rant

s

�Th

e B

ank�

s tra

ditio

nal t

ool o

f off

erin

g lo

ans

to g

over

nmen

ts is

not

eff

ectiv

e in

the

cont

ext o

f glo

bal p

robl

ems,

as g

over

nmen

ts

will

not

be

will

ing

to p

ay lo

ans b

ack

on

proj

ects

that

ben

efit

them

littl

e�

Thus

, inc

reas

ing

the

amou

nt o

f gra

nt m

oney

th

e B

ank

issu

es w

ill in

crea

se it

s leg

itim

acy

in te

rms o

f glo

bal p

ublic

goo

ds

28

Is th

e B

ank

Illeg

itim

ate?

�Our

fath

er w

ho a

rt in

Was

hing

ton

�Whi

rled

Ban

k be

thy

nam

e.�T

hy k

ingd

om c

ome,

thy

will

be

done

, �o

r els

e, th

ere'l

l be

no m

ore

lend

ing.

�Giv

e us

this

day

our

trip

le A

cre

dit r

atin

g,

and

forg

ive

us o

ur p

ast l

oans

, as

we

rem

ove

all b

arrie

rs to

inve

stm

ent.

�Our

eco

nom

y is

you

r eco

nom

y,yo

ur e

cono

my

is o

ur e

cono

my,

we

are

all o

ne,

glob

ally

inte

grat

ed,

fore

ver a

nd e

ver.

�Amen

29

Vot

es�

Vot

es p

ropo

rtion

al to

size

of s

hare

�no

long

er a

dequ

atel

y re

pres

ents

bor

row

ing

coun

tries

�fo

r exa

mpl

e, S

ub-S

ahar

an A

fric

a re

pres

ents

27

% o

f all

mem

ber c

ount

ries,

but r

ecei

ves 8

%

of v

otes

�W

ould

incr

easi

ng th

e nu

mbe

r of v

otes

that

bo

rrow

ing

coun

tries

enj

oy d

isco

urag

e ric

h co

untri

es fr

om c

ontri

butin

g to

the

bank

?

30

Gov

erna

nce

�Su

gges

tions

from

the

CG

D re

port:

�Tr

ansp

aren

cy in

sele

ctin

g th

e W

orld

Ban

k pr

esid

ent

�es

tabl

ish

two

mor

e se

ats f

or A

fric

an c

ount

ries

�ca

rry

out a

pub

lic a

sses

smen

t of v

ote

allo

catio

ns a

nd o

ther

gov

erna

nce

issu

es�

Com

mis

sion

a re

view

of t

he b

oard

to a

ddre

ss

the

budg

et a

nd e

ffec

tiven

ess

�A

re th

ese

refo

rms s

atis

fact

ory?

30

31

Gov

erna

nce

�So

me

sugg

estio

ns fr

om M

asoo

d A

hmed

: �

vigo

rous

ly p

ursu

e di

sclo

sure

of c

ount

ry

polic

ies

�de

cent

raliz

atio

n of

pol

icy

optio

ns to

the

coun

try le

vel

�re

form

fund

ing

sour

ces,

away

from

ad

hoc,

pr

ojec

t-spe

cific

trus

t fun

ds (o

ne w

ay to

do

this

w

ould

be

to c

reat

e a

larg

e fu

nd fo

r glo

bal

publ

ic g

oods

)�

Inde

pend

ent e

valu

atio

n31

32

Res

earc

h�

Ban

k co

nsid

ers i

tsel

f a k

now

ledg

e ba

nk�

Of t

heir

10,0

00 p

erso

n st

aff,

77 w

ork

as fu

ll tim

e re

sear

cher

s in

the

econ

omic

s de

partm

ent

�Pr

oble

m o

f bia

s�

for e

xam

ple,

follo

win

g cr

itici

sm o

f the

Ban

k in

th

e 19

90s,

it pu

blis

hed

seve

ral r

epor

ts la

udin

g th

e ef

fect

s of a

id o

n ec

onom

ic g

row

th

incl

udin

g on

e by

Bur

nsid

e an

d D

olla

r tha

t pr

oved

show

wea

k re

sults

33

Bur

nsid

e an

d D

olla

r�

Arg

ues t

hat a

id is

goo

d fo

r gro

wth

und

er

certa

in p

olic

y co

nditi

ons

�74

3 C

ites i

n G

oogl

e Sc

hola

r�

Use

s ind

ex o

f pol

icy

that

com

bine

s the

go

vern

men

t sur

plus

, the

infla

tion

rate

, and

an

ope

nnes

s mea

sure

, whi

ch a

re n

ot d

irect

po

licie

s, bu

t out

com

es�

Fails

to a

ccou

nt fo

r cau

salit

y is

sues

(i.e

. aid

is

not

onl

y de

term

ined

by

econ

omic

pe

rfor

man

cebu

tdet

erm

ines

it)33

34

Kno

wle

dge

Ban

k?�

A re

view

of W

orld

Ban

k re

sear

ch c

haire

d by

A

ngus

Dea

ton

argu

es th

at re

sear

ch a

t the

Ban

k is

fund

amen

tally

diff

eren

t tha

n ac

adem

ic

rese

arch

�fin

ding

s are

exp

ecte

d to

be

dire

ctly

app

lied

to

oper

atio

ns�

Supe

riors

feel

pre

ssur

e fr

om th

e pr

esid

ent a

nd

boar

d to

ens

ure

that

rese

arch

adh

eres

to p

olic

y lin

e�

stro

ng re

latio

nshi

ps w

ith d

onor

cou

ntrie

s mak

es it

di

ffic

ult t

o pu

blis

h in

form

atio

n po

tent

ially

de

trim

enta

l to

thei

r sta

ndin

g

34

35

Som

e So

lutio

ns�

Fost

er re

latio

nshi

ps w

ith a

cade

mic

rese

arch

ers

�In

tegr

ate

rese

arch

ers f

rom

dev

elop

ing

coun

tries

into

B

ank

staf

f�

Invo

lve

rese

arch

staf

f mor

e di

rect

ly in

pro

ject

pl

anni

ng�

Fund

rese

arch

at t

he B

ank

with

an

endo

wm

ent,

insu

latin

g it

from

inst

itutio

nal p

ress

ures

from

the

boar

d an

d pr

esid

ent

�M

aint

ain

chec

ks a

nd b

alan

ces;

avo

id m

akin

g st

rong

cl

aim

s abo

ut w

eak

rese

arch

that

supp

orts

Ban

k po

licy

36

Con

clus

ions

�Th

e W

orld

Ban

k ne

eds r

efor

m!

�N

gaire

Woo

ds o

utlin

es th

ree

mod

els t

he

Ban

k co

uld

take

�Th

e kn

owle

dge

bank

: doe

s the

Wor

ld B

ank

play

a u

niqu

e ro

le in

th

e co

llect

ion

and

diss

emin

atio

n of

kno

wle

dge?

�Th

e lis

teni

ng b

ank:

is th

e B

ank

uniq

uely

pla

ced

to fu

lfill

the

need

s of

its m

embe

r cou

ntrie

s or i

s it i

nter

ferin

g w

ith o

ther

ope

ratio

ns

(by

the

UN

and

regi

onal

ban

ks, f

or e

xam

ple)

?�

The

dam

s and

irrig

atio

n ba

nk: s

houl

d th

e B

ank

adhe

re to

its i

nitia

l m

anda

te to

dev

elop

infr

astru

ctur

e an

d gr

owth

, or i

s thi

s an

outd

ated

dev

elop

men

t mod

el?

36

37

Con

clus

ions

�In

the

pres

ence

of p

rivat

e ca

pita

l, th

e B

ank

is in

crea

sing

ly ir

rele

vant

as a

don

or�

The

pove

rty m

issi

on h

as h

eret

ofor

e be

en

carr

ied

out i

n an

ad

hoc

man

ner,

rely

ing

too

heav

ily o

n th

e ne

o-lib

eral

par

adig

m�

Rep

rese

ntat

ion

at th

e bo

ard

mut

es th

e vo

ices

of t

he p

oor-

-thos

e th

at th

e B

ank

clai

ms t

o se

rve

37

38

Con

clus

ions

�Fo

cus o

n tw

o th

ings

�G

rant

s: th

e B

ank

is st

ill re

leva

nt a

s a

deve

lopm

ent i

nstit

utio

n; in

crea

sing

smal

l gr

ants

cou

ld se

rve

man

y of

the

wor

ld�s

poo

rest

�G

loba

l Pub

lic G

oods

: inc

reas

ingl

y, c

ount

ry

prob

lem

s are

bec

omin

g gl

obal

; by

spea

rhea

ding

pro

ject

s on

clim

ate

chan

ge a

nd

dise

ase

erad

icat

ion,

the

Ban

k co

uld

pave

the

way

for a

new

glo

bal g

over

nanc

e sy

stem

38