Beruflich Dokumente
Kultur Dokumente
Agenda
I. Introduction to the World Bank
A. B. C. D. Bretton Woods The World Bank The World Bank Group The Structure
II. Anti-Corruption
A. B.
A. B. C. A. B.
Bretton Woods
In response to post-war reconstruction and to discuss the future of international economic cooperation In July of 1944, representatives from 44 countries met at Bretton Woods, New Hampshire. Creation of two institutions,
1.International Monetary Fund (IMF) 2.International Bank for Reconstruction and Development; a.k.a. the World Bank.
Board of Governors
Made of up representatives from member countries
Typically, the representatives are ministers of finance or ministers of development
Meet annually to review policies and review membership Ultimate policy makers Elect a Board of Directors every 2 years
Board of Directors
24 members of the Board (5 from the largest shareholders, 19 to cover the remaining geography) President of the World Bank serves as the Chairman of the Board General operations Meet twice a week According to the Charter, the member with the greatest # of shares, chooses the president. The president is, traditionally, a U.S. citizen and is the chairman of the Board.
Anti-Corruption
The Bank has identified corruption as among the greatest obstacles to economic and social development. The World Bank believes that an effective anticorruption strategy builds on five key elements:
Enforcing Anti-Corruption
Chad: Loans to Chad were suspended on the basis that the government had breached an agreement with the Bank. Kenya: Concerned about corruption in the Kibaki government of Kenya, the Bank would not clear delayed loans of $265 million until it is convinced the government was dealing with the problem. It resulted in the resignation of three ministers. Congo: Wolfowitz had read a newspaper report about the Congolese president, Denis Sassou-Nguesso, and his extravagant hotel bills while on a trip to New York. Additionally, he was informed that KPMG, the firm that audits Congo's state-run oil company, had refused for three years, to sign off on its financial statements. Wolfowitz decided to hold off on Bank-funding, even thought the IMF decided that the Congo deserved the debt relief.
Enforcing Anti-Corruption
India: The Bank has held up over $1 billion in health loans due to corruption concerns. Bangladesh: The Bank has cancelled road contracts, health, nutrition and municipal services projects, due to corrupt bidding practices. Uzbekistan: The Bank announced in March that it would stop making new loans to Uzbekistan.
Internal Corruption
Corruption practices may be associated with more than 20% of the funds disbursed by World Bank Eg: AGETIP program in Africa Healthcare projects in India Lahmeyer International Case Why it Happens? Bottlenecks in investigation process within World Bank Misinterpretation of the World Bank mission Statement
The Rules
Staff Rule 4.01, Paragraph 5.02, the World Banks policy is that neither person may supervise the other, directly or indirectly, and their duties should not be likely to bring them into routine professional contact. The ethics committee at the World Bank had reviewed the matter and recommended that Riza be seconded to another organization; the U.S. State Department.
www.wsj.com
The Contradiction
Wolfowitz had authorized a significant pay raise of approximately $40,000.00 to her prior to her departure from the World Bank. This raise was combined with another raise for a total annual salary of $193,000.00 tax-free. In comparison to her boss, Condoleeza Rice at the State Department earns $186,600.00 before taxes.
Dossani, Sameer; Wolfowitz Scandal Takes Bank Hypocrisy to New Heights, Foreign Policy In Focus;www.fpif.org April 20, 2007
Guilty
Alison Cave, the Chair of the Staff Association, stated said that Wolfowitz must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group and has destroyed the staff's trust in his leadership. He must act honorably and resign. An investigative committee assigned to the matter, declared that Wolfowitz was guilty due to a conflict of interest.
8.
A New President
Robert Zoelick On May 30, 2007, it was announced that Robert Zoellick has been nominated to take over the presidency of the World Bank. Zoellick is currently the vice president at Goldman Sachs. He has previously worked as a U.S. trade representative and is a former Deputy Secretary of State.
Aversa, Jeannine, Zoellick Must Restore Calm at the World Bank, www.forbes.com (May 30, 2007)
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