World Bank
Reform internal Goverance
A. Introduction:
“The World Bank has undergone significant change in its purpose and membership since its inception in 1944” (world bank, 2003). As a result, there are many people criticize regarding its current governance and accountability. They are discussed that bank’s governance system is undemocratic, largely because borrowing countries that are impacted the most by bank projects have minimal voice in bank’s decisions about loan and projects and the selection of the bank president is unilateral. The World Bank also lack of transparency in its decision making. And then, critics argue the bank’s members are unaccountable. “In April 2010, Management presented a set of operational and institutional reforms aimed to enhance the overall effectiveness, efficiency, legitimacy, and accountability of the WBG” (WB, 2010). Some of these reform areas have direct implications on the governance of the institution, from the perspective of Board / Management relations, institutional accountability, and relations with external stakeholders. AS a result the Bank uses the methods to solve the current problems, such as reforming the voting system and presidential selection and makes the bank’s accountability.
B. Governance:
“Since the World Bank was established over 60 years ago, its role in supporting economic and social development has expanded and deepened with changes in the global context and the evolution in the financial architecture”(Jeff, 2007). The focus on strengthening internal governance systems and structures is driven by external and internal forces. There is little of bank basic structure has been altered, even though the World Bank’s members have been changed considerably. The main problem of the World Bank’s governance is that developing country has weak link with bank’s decision making process, because they do not have their own executive director. “The World Bank’s internal governance mechanisms reflect the
A. Introduction:
“The World Bank has undergone significant change in its purpose and membership since its inception in 1944” (world bank, 2003). As a result, there are many people criticize regarding its current governance and accountability. They are discussed that bank’s governance system is undemocratic, largely because borrowing countries that are impacted the most by bank projects have minimal voice in bank’s decisions about loan and projects and the selection of the bank president is unilateral. The World Bank also lack of transparency in its decision making. And then, critics argue the bank’s members are unaccountable. “In April 2010, Management presented a set of operational and institutional reforms aimed to enhance the overall effectiveness, efficiency, legitimacy, and accountability of the WBG” (WB, 2010). Some of these reform areas have direct implications on the governance of the institution, from the perspective of Board / Management relations, institutional accountability, and relations with external stakeholders. AS a result the Bank uses the methods to solve the current problems, such as reforming the voting system and presidential selection and makes the bank’s accountability.
B. Governance:
“Since the World Bank was established over 60 years ago, its role in supporting economic and social development has expanded and deepened with changes in the global context and the evolution in the financial architecture”(Jeff, 2007). The focus on strengthening internal governance systems and structures is driven by external and internal forces. There is little of bank basic structure has been altered, even though the World Bank’s members have been changed considerably. The main problem of the World Bank’s governance is that developing country has weak link with bank’s decision making process, because they do not have their own executive director. “The World Bank’s internal governance mechanisms reflect the