Why not delay the vote for World Bank President?

Why Bill Easterly believes that all candidates for World Bank President should be given more time to engage in a public debate:

A public forum allows many different minority viewpoints to be heard. Indeed, the backlash against Kim has generated its own backlash. The point of a forum is not to privilege Kim's critics but to let both sides speak. Debates between opposite viewpoints are crucial to any democratic process, preventing "groupthink"; even when the dissidents are wrong, they force those with the right view to make their case. The CGD/Washington Post forum was transparent (the sessions with Okonjo-Iweala and Ocampo were both live-streamed and posted afterwards on the internet). Kim's discussions with global leaders were not transparent.

Imagine a nominee with controversial environmental views or credentials were in the frame to lead America's Environmental Protection Agency (EPA). It's unlikely the administration would say the nominee was so busy meeting members of Congress behind closed doors that he or she had no time to consult with environmentalists.

Read the entire piece, published this afternoon, in The Guardian.

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False Dichotomies: National vs Humane Development

By Gregg Gonsalves Lant Pritchett—a Professor of the Practice of International Development at the Harvard Kennedy School—has been leading a campaign against the election of Jim Kim to the World Bank presidency.   While he isn’t the only critic of Dr. Kim’s nomination, he is among the most vocal, prominent and well known.   Though his views are his own, many of them have been amplified and echoed by other leading development economists like William Easterly at New York University and several people associated with the Center for Global Development in Washington, DC.

Over the past few weeks, Pritchett has questioned Kim’s qualifications, saying a lack of training in economics and experience in world finance should disqualify him from consideration for the post. He has further suggested that the nomination is about the arrogance of American power and hegemony over the institution and that he should step aside for a merit-based election in which the Nigerian candidate for the post, Ngozi Okonjo-Iweala, a World Bank, Harvard and MIT alum and finance minister of Nigeria would sweep to victory.

A few days ago, Pritchett wrote an article in the New Republic, which finally comes clean about the real reasons for the escalating, grasping campaign of opposition to Jim Kim. The piece for the New Republic (TNR) is called Why Obama’s World Bank Pick Is Proving So Controversial.   The title again is an overreach: it should really read why Obama's World Bank Pick Is Proving So Controversial to Me and My Friends.  Again, while Pritchett’s views are his own, his article has resonated with other development economists, including Easterly, who have circulated links to it over the past few days.  Pritchett’s piece has clearly struck a nerve among his peers.

Jim Kim has extensive support around the world for his candidacy, but it is vital for us to understand Pritchett’s objections to Dr. Kim as it all really boils down to what we think "development" is, what all of our work is about in our countries, whether we live and work in poor, middle-income or even rich nations. Pritchett in the TNR posits two kinds of development: national development and humane development.

National development "would involve the natural replication of the four-fold historical transformation of the developed nation-states: Economies would become more productive and hence support broad-based prosperity, polities would become more fully responsive to their citizens, administration would become more capable, and societies would become more equal as birth-based distinctions (such as class and caste) and divisive identities (of kith and clan) faded in favor of modern social relationships. Note that each of these was something that would happen not just to individuals but to a country."

Pritchett goes on to define humane development as a kind of philanthropy, where people step into the breach where national development has failed, where “these idealists and the organizations they run have helped to mitigate famines, pandemics, poverty, violence, and lawlessness in some of the poorest areas in the world.”  Jim Kim is a humane development type in Pritchett's eyes, not fit to run the Bank, which should focus on national development alone, an approach that Ngozi Okonjo-Iweala, a card-carrying economist would bring to Washington, DC.  However, Dr. Pritchett who has been a leader in the field of modern national development is deeply myopic.

First, while many people have been lifted out of poverty over the past century due to economic growth, inequity is pervasive and we are well on our way to creating a new transnational economic elite or rich people without borders.  The birth-based distinctions and divisive identities that Dr. Pritchett rightly decries are being replaced by class-based ones.  However, when you worry mostly about growth in the aggregate, the little people don't matter.

Second, political responsiveness and accountability, better governance and administration have been integral to those of us who work on health and other issues that are not directly about economic growth and achieving the aims of national development can come through work on things other than economics and democratization in the abstract.  In fact, the fight against AIDS has been transformative in this regard.  As the South African journalist Jonny Steinberg has said in his book Three Letter Plague: “The idea of demanding that a drug be put on a shelf, or that a doctor arrive at his appointed time, is without precedent. The social movement to which AIDS medicine has given birth is utterly novel in this part of the world, the relationship between its members and state institutions previously unheard of.”

AIDS has been about accountability and state responsiveness, about better governance and administration. Pritchett has previously and vociferously complained about the provision of ART in the developing world as a prime example of palliative humane development, misguided philanthropy, but for those of us who have watched more closely this has all been about key aspects of national development, about "polity, administration, and society," as Pritchett himself terms it.

For Pritchett and his peers, Jim Kim is a crazed, lefty, charity worker who pushed pills on Africa--this is why they dislike him so.  They refuse, again and again, to see what Kim did, what we all did, as critical to their own self-professed goals around democratization. The push for AIDS treatment was not charity or mitigation, but all about what governments should do for their citizens; it was about redefining citizenship and state responsibility.

Why do they have such an inability to see this? Well, because I think there is something else going on.  Over the past several decades there has been a push from those working at the highest levels of economic and social policy around the world to redefine state responsibilities downwards.  The historian Tony Judt described this well in his book Ill Fares the Land.  We're seeing a renegotiation of the post World War Two social contract, which enshrined a system of social protections around the world, in Europe, Canada and Australia and even in the USA, which offered a safety net for the poor and the sick and saw this safety net as a core responsibility of the state.

In 1935, John Maynard Keynes said: “the ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood.  Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.”

Nowadays, from Clinton's "welfare reform" in the 1990s, to the current, slow dismantling of the NHS in the UK by David Cameron and Nick Clegg, states are getting out of the business of helping the poor and the sick.  These political choices derive from larger intellectual frameworks constructed largely by economists where things like healthcare are not a "public good,”—they are like a loaf of bread, one eats it on one's own—and states should only invest in what provide broad based benefits, key among them economic growth and defense.  In our brave new world, the models for national development are the states of austerity-crazed Europe and a USA in the mind of Republicans, where we are slashing social protection programs, cutting public spending, all in the appeasement of the gods of growth.

For people like Lant Pritchett and a generation of development economists like him, all heirs to Thomas Malthus, you can't have it all or anything nearly like it.   We have to promote growth and democratization, even if it creates a new caste system based on inequities in wealth within countries or a new-class of have-nots, as in have-not healthcare, have-not education.  ''AIDS is a catastrophe,'' Dr. Pritchett told the New York Times several years ago. ''And it's not fair, if treatments exist, not to give them to all these people who are dying. But it's also not fair that more than a third of children in Africa are malnourished. It's not fair that maybe 140 babies in every 1,000 will die before the age of 1, and more than a third will never learn to read. All of it is unfair. Unfairness is not the test for action.'' For Dr. Pritchett the test for action is about economic growth.  We wait for AIDS drugs, we wait for better schools.  It will all come along if we all just wait for growth and democratization--as they write about in the textbooks--arrives like manna from heaven.

Our work in AIDS, Jim Kim’s work in AIDS, on TB has been about transforming the world for the better, not out of some charitable impulse, sneered at by Dr. Pritchett, but because we have a vision for what the world should look like, about what governments should and should not do for their people; about what to expect from, what we can demand in terms of delivery of public services; about our role as active citizens, not waiting for experts or politicians to come and save us.  This is national development, about polity, administration, and society.   But it really doesn't matter to Dr. Pritchett—we have all made a cardinal sin, which was to ask too much of our leaders, to question whether some idealized notion of free markets and free elections are all we need be asking for to secure a future for our children, whether the prescriptions of economists will deliver in the end for ordinary people.

Economists have gotten a bad rap lately, with so many of them having been so spectacularly wrong about so many things around the origins of the current worldwide economic crisis and its aftermath. Some of this in the end is about economics status as a science, about protecting a discipline that is deeply political, but strives to cloak itself with objectivity. Someone like Jim Kim, trained in the biomedical sciences, trained to rely on hard endpoints, is a threat is a more fundamental sense, as he doesn't take the laws of economics as equivalent to the laws of gravity, to the central dogma of molecular biology or the germ theory of disease.

To be fair, there are economists who recognize that their field is contingent, more inexact, and are raising serious questions about the rigor of their assumptions, about over-reliance on models, the need for a far better quality of evidence, far beyond the sub-specialty of global development.  These are the kinds of people, the fresh voices and thinking, one could see coming to the Bank under Kim’s leadership.  Kim is also trained as an anthropologist as well; he knows there a variety of tools with which to see the world as long as you know their limitations.  Dr. Pritchett and his colleagues don't have this humility, they have their certainty, that they know what is right, what is needed, what should be done. This is what scares me most of all.

In the end, Jim Kim represents a national development perspective, but a critical one. For Pritchett, national development is about economy, polity, administration, and society.  Kim’s work has certainly centered around the last three of these and he will bring a critical eye to the first.  I am sure Ngozi Okonjo-Iweala is brilliant.  I am not quite sure she represents much more than a reification of traditional ideas about development, has sufficient distance from things to offer a critique, bring change.  She is the establishment’s choice, even if she hails from Africa. As others have said, including economists like John Bates Clark medal winner Daron Acemoglu from MIT, the opposition to Kim all seems like a strange defense of business as usual from people who have been critics of the Bank in the past.

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Gregg Gonsalves is a long time AIDS activist and an Open Society Foundations Fellow.

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The Other Gentlemen’s Agreement

 
Who gets a vote? 25 Executive Directors on the Executive Board of the World Bank, each appointed by member governments 117 Cardinals, each appointed by the Pope, forming the College of Cardinals
Where are they from? 56% from North America and Europe 62% from North America and Europe
Who does NOT get to vote? 1.3 billion poor people 1.2 billion Catholics
Who is chosen? A gentleman from the US, 100% of the time since 1946 AD A gentleman from Europe, 100% of the time since 741 AD
What is the voting system? The US, Japan, Germany, France, the UK, Russia, Saudi Arabia and China appoint one Executive Director each. The US ED has 15.5% of the voting power, Japan has 9%, and everyone else has less than 5%. The other 17 EDs are elected by groups of countries. For example, Poland, Azerbaijan, Uzbekistan and others select a Swiss ED: Each cardinal under age 80 has 1 vote. In 2005, Europe was represented with 50% of the cardinals and North America with 12%. 18% of the Cardinals were of Latin American origin, 9% African and 9% Asian. The composition of the College changes as the new Pope appoints new cardinals.
How is the vote legitimized? "The Executive Directors […] shall exercise all the powers delegated to them by the Board of Governors" “quasi afflati Spiritu Sancto” (as if inspired by the Holy Ghost)
What is the final voting tally? 100% in favor of winning candidate* 100% in favor of winning candidate
How did the representatives actually vote? Only God knows

On April 16, expect white smoke to rise out of H Street and 19th.

*UPDATE April 16, 2012: The new World Bank President was announced today and the American nominee, Jim Yong Kim, was elected. For the first time in World Bank history, the vote was not unanimous, but the voting tally has so far not been made public.

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The Roots of Hardship

Bill Easterly reviewed “Why Nations Fail” by Daron Acemoglu and James A. Robinson for the Wall Street Journal:

Far too much intellectual firepower regarding the global poor these days focuses on the (small) things Westerners can do to help—obsessing about, say, how much money to spend on mosquito-blocking bed nets to fight malaria. The bigger questions—about why some societies prosper and others don't, about how to improve the lot of an entire impoverished class—are left by default largely to uncritical admirers of China's growth. The arrival of "Why Nations Fail" is thus a hugely welcome event, since economists Daron Acemoglu and James A. Robinson take on the big questions and in doing so present a substantial alternative to the dominant thinking about global poverty.

For Messrs. Acemoglu and Robinson, it is institutions that determine the fate of nations. Success comes, the authors say, when political and economic institutions are "inclusive" and pluralistic, creating incentives for everyone to invest in the future. Nations fail when institutions are "extractive," protecting the political and economic power of only a small elite that takes income from everyone else.

It is common among those who work in development to wish for a technocratic rule of experts unencumbered by politics. Messrs. Acemoglu and Robinson insist that getting the economics right requires getting the politics right. They support their thesis with evidence so comprehensive that it includes the rise and fall of medieval Venice, the colonization of the Americas, and the tribal politics of Botswana at its independence in 1966.

Read the full review here.  The authors also have a new blog; follow it here.

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TOMS Shoes dodges questions on evangelical giving partners

I was recently interviewed for a podcast about TOMS shoes, part of which was also picked up on Public Radio International’s The World. Over the course of the podcast I and others articulate arguments about the TOMS Shoes Buy-One-Give-One model that DRI and Aid Watch followers are probably already familiar with:

  1. While the TOMS Shoes marketing blitz implies that shoelessness is a major scourge of the developing world, this is simply untrue. Even the poorest of regions have markets where shoes are cheap and plentiful (in fact, many TOMS pictures and videos show kids taking off their own shoes to put on TOMS shoes.)
  2. Lack of shoes is an effect of poverty and not a cause, and giving kids shoes does very little to address the serious problems that these kids face.
  3.  Giving away lots of free shoes does nothing to help local economies or create jobs, and can actually hurt the people and businesses that produce and/or sell shoes locally.
  4.  The TOMS shoe drops are a prime example of aid that does something for people, rather than with them.

What’s new here is an investigation into the evangelical organizations that distribute the shoes given away to kids around the world, in countries like Rwanda and Honduras. The producer, Amy Costello, whose great new podcast series Tiny Spark is worth following, struggles to get to the bottom of it all: So what if eight of TOMS giving partners are evangelical organizations? Are those organizations delivering religious messages along with the TOMS shoes? Are some of these organizations giving only to Christians, and if so, does that mean that other people, potentially needier people, are NOT receiving the shoes? If so, this would violate TOMS’ stated company policy, and so is TOMS doing anything about it?

A video analyzed in the podcast shows a shoe distribution carried out by Bridge2Rwanda. It features a prayer circle, shots of Rwandan kids singing about Jesus, and an American celebrity performing Amazing Grace. TOMS loved Bridge2Rwanda’s video so much they featured it on their own website—but with the more overtly religious parts edited out.

Neither TOMS nor its “Founder and Chief Shoe-Giver” Blake Mycoskie, who once issued an apology for appearing at an anti-gay Christian group after TOMS customers proposed a boycott, and then erased all traces of that apology from his website once the furor died down, responded to any of Amy’s repeated requests for an interview.

On the topic of its evangelical giving partners, the only thing that seems clear is that TOMS would prefer we remain in the dark.

Listen to the podcast and comment here.

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Related posts: A tryst with TOMS Barefoot on Broadway

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Daily Roundup on Kim vs. Ngozi for World Bank President

Could Ngozi Okonjo-Iweala head the World Bank? (ungated) By Lant Pritchett, The Guardian

The candidacy of an African woman, Ngozi Okonjo-Iweala, to lead the World Bank represents a historic opportunity to strengthen the organisation in its mission to attack global poverty. However, the fatalist view is that Okonjo-Iweala cannot win because she is not American. Fortunately, in this case idealism and power politics can align. Okonjo-Iweala can and should win, but it will take effort. Here is a five-stage scenario of how events could play out.

My call for an open, inclusive World Bank (gated) by Jim Yong Kim, Financial Times

My own life and work have led me to believe that inclusive development – investing in human beings – is an economic and moral imperative. I was born in South Korea when it was still recovering from war, with unpaved roads and low levels of literacy. I have seen how integration with the global economy can transform a poor country into one of the most dynamic and prosperous economies in the world. I have seen how investment in infrastructure, schools and health clinics can change lives. And I recognise that economic growth is vital to generate resources for investment in health, education and public goods.

Every country must follow its own path to growth, but our collective mission must be to ensure that a new generation of low and middle-income countries enjoys sustainable economic growth that generates opportunities for all citizens.

U.S.’s World Bank Pick Defends His Credentials (gated) by Sudeep Reddy, Wall Street Journal

Dr. Kim is now on an international “listening tour,” meeting with officials in foreign nations. He has been widely praised by government officials and former colleagues for his experience in launching health programs and his on-the-ground understanding of poverty and development.

But he also has faced criticism from some economists, who say his development experience is too narrow.

New York University development economist William Easterly, a longtime World Bank foe, criticized Dr. Kim in a blog post Sunday for writing in a book 12 years ago that “the quest for growth in GDP and corporate profits has in fact worsened the lives of millions of women and men.”

Dr. Kim’s co-editors say the selected quote missed the overall point of the book, “Dying for Growth,” which is about identifying growth that helps the poor.

In recent days, Mr. Easterly, a staunch defender of free-market economics, has become a leading critic of Dr. Kim. He said in an interview that Dr. Kim’s “anti-globalization point of view” and critique of corporate-led growth put him at odds with the goals of World Bank members.

“All of the members of the World Bank want growth,” he said. “They want global corporations to come invest in their countries. … It’s just kind of odd that he would be now in a position to be a player in that system he’s expressed so much opposition to.”

Defenders of Dr. Kim note that the book, written in the late 1990s, came before heavy international investment in health and education to confront global health problems such as AIDS.

World Bank selection a ‘hypocrisy test’ (gated) by By Xan Rice, Lionel Barber and William Wallis, Financial Times

…[T]here has been a strong push from the emerging world for an open contest to choose a successor to succeed Robert Zoellick, which the main World Bank shareholders say they support. Ms Okonjo-Iweala, backed by African leaders, is one of three candidates vying to take over from Mr Zoellick when his tenure ends in July.

“I would really hold the Bretton Woods shareholders to their word, that they want to change the way business is being done and want a merit-based, open and transparent process for the presidency,” Ms Okonjo-Iweala told the Financial Times.

“I just want to see whether people just say things with their mouth that they don’t mean and what’s the level of hypocrisy,” she said in an interview. “So we want to test that.”

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Is the Tide Turning in favor of the Ngozi Nomination?

US World Bank nominee under fire over book By Robin Harding, Financial Times:

Jim Yong Kim, the US nominee to head the World Bank, is coming under fire over a book he co-authored that criticises "neoliberalism" and "corporate-led economic growth",  arguing that in many cases they had made the middle classes and the poor in developing countries worse off.

Little is known about his views on economic policy because his background is in health. But if he cannot set out a strong vision for how the World Bank will fuel growth, it may boost the campaigns of heavyweight rivals such as Ngozi Okonjo-Iweala, the Nigerian finance minister and former World Bank managing director.

What should the World Bank be? By Jennifer Rubin, Washington Post

Rubin writes that the Kim nomination portends a shrinking role in global finance for the World Bank, which would become less a Bank and more a World Development Agency. She draws on Acemoglu and Robinson’s new book, Why Nations Fail to comment:

If you want societies to get out of poverty it’s not going to be billions in water reclamation projects that do the trick. Rather, you want “property rights, contract enforcement, ease of starting new companies, competitive markets, and freedom for citizens to enter the occupation and the industry of their choice.” Giving billions to despotic and corrupt regimes may actually set back progress.

See also: Isobel Coleman at the Council on Foreign Relations Jim Yong Kim and the World Bank’s Changing Role

Obama Has Made a Mess of the World Bank Succession By Clive Crook, Bloomberg:

At the top of the bank I expect that Kim would soon learn, if he hasn’t already, that market-driven economic growth is the only basis for lasting success against poverty and the disease and environmental degradation that go with it. Growth might not be a sufficient condition for social progress, but it’s certainly a necessary one (notwithstanding Cuba, where “Dying for Growth” finds much to admire). Nobody who questions this should be running the World Bank.

One of the other candidates in contention for the job is Ngozi Okonjo-Iweala. She’s a two-time minister of finance in Nigeria, where by all accounts she acquitted herself with distinction. She has also worked as a senior manager at the bank, so she knows what needs mending. You could argue she’s too much of an insider to be radical -- in advance, who knows? But on paper, at least, her qualifications are far better than Kim’s.

Obama Made the Wrong World Bank Call By Edward Luce, Financial Times

Dr Kim’s nomination was heavily influenced by Hillary Clinton, who rightly admires his grassroots work on Aids and other diseases. Of course it is critically important to fight them. But disease does not spread in a vacuum. Development is a complicated business. Yet healthcare is the prism through which Washington increasingly approaches it. Consider this: the US pledged $4.1bn for the latest replenishment of the International Development Association, the World Bank’s soft-loan arm for the poorest countries. It pledged almost exactly the same amount – $4bn – to the Global Fund to fight Aids, Tuberculosis and Malaria. Putting a healthcare specialist in charge of the World Bank would reinforce America’s focus on what some in the developing world dismiss as “the fashionable diseases”. It is the unfashionable illnesses, such as diarrhoea, that claim the most lives.

The right leader for the World Bank Editorial, Financial Times

This newspaper has acknowledged that, were Mr Kim to be selected, he could be a good choice. His background in health fits well with the Bank’s broader development goals, while his managerial record at the World Health Organisation shows that he could be effective at implementing these aims.

But the Bank needs more than this. Its new leader should have a command of macroeconomics, the respect of leaders of both the funding and the funded countries, and the management skills to implement his or her vision. These requirements make Ms Okonjo-Iweala the best person for the role.

My vision for World Bank – Okonjo-Iweala  by Oscarline Onwuemenyi, Nigeria’s Vanguard

The Nigerian candidate herself says:

There are many emerging market countries that are very supportive of my candidacy and many of them feel that the World Bank is ready for someone who understands the challenges of emerging economies and of developing countries, and can totally focus on expanding opportunities for growth and development using practical financial tools to create growth.

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The DRI Conference by the Numbers

Number of people who attended DRI's conference on Thursday: 726Number of people who registered: 1469 Number of sandwiches eaten: 675 Gallons of coffee consumed: 44 Cups of Good African coffee from Uganda enjoyed on stage by Bill Easterly: 1

Percentage of registered students from NYU: 50 Percentage of registered students from Columbia: 20 Number of other universities represented in the remaining 30 percent: 57

Number of tweets made under #DRIdebates: 500 How much we like this curated/crowdsourced summary of the conference, created by top tweeter @viewfromthecave: a lot

Number of Millennium Village representatives invited to speak at the conference: 8 Number of Millennium Village representatives on the stage: 0

Number of attendees who brought their own dog-eared copy of Poor Economics for Abhijit Banerjee to sign: 30 Number of people who had Poor Economics counter-signed by development experiment critic Angus Deaton: 1

Number of countries of origin for our 8 speakers: 6 (that's Ghana, India, Kenya, UK, USA, Uganda)

Percentage of people in our survey who said the conference changed the way they saw aid and development: 70

This post has been updated to reflect final survey figures

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Some Not Entirely Typical Remarks by a World Bank President

The following quotations are taken from: Jim Yong Kim, Joyce V. Millen, Alec Irwin, and John Gershman, Editors, Dying for Growth: Global Inequality and the Health of the Poor, Common Courage Press: Monroe, Maine, 2000.

Introduction: What is Growing? Who is Dying? By Joyce V. Millen, Alec Irwin, and Jim Yong Kim

“This book seeks to fill an important gap in knowledge by examining the documentable health effects of economic development policies and strategies promoted by the governments of wealthy countries and by international agencies such as the World Bank, the International Monetary Fund (IMF), and the World Trade Organization.” (p. 6)

“The studies in this book present evidence that the quest for growth in GDP and corporate profits has in fact worsened the lives of millions of women and men.” (p.7)

“Even where neoliberal policy measures have succeeded in stimulating economic growth, growth’s benefits have not gone to those living in “dire poverty,” one-fourth of the world’s population.” (p. 7)

“Using Cuba as an example, Chapter Thirteen makes the case that when leaders prioritize social equity and the fundamental right of all citizens to health care, even economically strapped governments can achieve improved and more equitable health outcomes.” (p. 10)

Conclusion: Pessimism of the Intellect, Optimism of the Will, By Joyce V. Millen, Alec Irwin, and Jim Yong Kim

“Through a series of specific cases, we have demonstrated how growth – the market-led economic growth sought by governments, the growth in profits celebrated by businesses, and the growth in power and influence of transnational financial and corporate interests – often comes at the expense of the disenfranchised and vulnerable…  As the imperatives of growth at any cost increasingly determine economic and social policy and the behavior of global corporations, more people join the ranks of the poor and greater numbers suffer and die.” (p. 363)

“Today, Chomsky notes, we see widespread ‘efforts to make people feel helpless, as if there is some kind of mysterious economic law that forces things to happen in a particular way, like the law of gravitation.’ Yet belief in such an immutable law is simply ‘nonsense.’  ‘These are all human institutions, they are subject to human will, and they can be eliminated like other tyrannical institutions have been.’” (p. 390, single quote marks note quotes from Chomsky)

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Why Ngozi Okonjo-Iweala Should Be the Next Head of the World Bank

By Lant Pritchett. This post is cross-posted with the Center for Global Development. The US had a chance to lead.  It abdicated that chance to play domestic politics and put forward in Jim Yong Kim a US nominee who is manifestly less qualified to be head of the World Bank than the alternative candidate nominated by African countries: Ngozi Okonjo-Iweala.

The World Bank is a full-service development institution that provides loans and grants and development advice to promote development, which is the transformation of countries towards prosperous economies that support broad based improvements in material well-being, democratic policies that respect citizen rights and respond to citizen demands, and capable administrations that allow governments to carry out their core functions—law and order, education, macro-economic management, health, infrastructure, regulation, security.

Therefore an ideal candidate should have:

  • some experience in government and the process of policy-making (as the World Bank’s clients are all governments),
  • some acquaintance with economic policy and policy making—including the tough choices like allocation of resources across uses,
  • some knowledge of finance (it is, after all, a bank that makes income from lending money),
  • perhaps some management experience in a multilateral organization,
  • exposure to the breadth of development issues.

Experience in Government.  Ngozi has been the Minister of Finance of Nigeria, twice.  If one had to name a tough job in the world, I think that would be it.  She did it first from 2003 to 2006 and by all accounts handled a very tough situation—including tackling entrenched corruption—in an admirable way.   Jim (to be fair we’ll use first names for both) has no experience in government.  He has been engaged in development as an academic and through NGOs.

Advantage Ngozi.

Acquaintance with Economic Policy.  Ngozi has had training in economic development from MIT.  Jim has been trained as doctor and anthropologist.  Ngozi has been a Minister of Finance making budget allocations and has dealt with the entire array of economic policies to promote growth and prosperity.  Jim has worked exclusively on health issues (rightly, as he is a physician) and has never been in a position of responsibility for economic policy.  Health was just one of many sectors for which Ngozi had to allocate budgets and promote performance.

Advantage Ngozi.

Knowledge of Finance.  Ngozi has been a Minister of Finance. As such, among other things, she led the Paris Club negotiations that led to billions of dollars debt relief for Nigeria.  Jim has no demonstrable experience in finance, banking, or the private sector.

Advantage Ngozi.

Management Experience.  From 2007 to 2011 Ngozi was a Managing Director of the World Bank.  She has therefore in-depth experience running a large and complex multi-lateral organization.  Jim from 2004 to 2006 was  director of WHO’s HIV/AIDS department and so has some experience in a multilateral organization.  Jim has also for two years been president of an American university.  But while Ngozi was near the top of a large organization dealing with all development issues Jim was responsible for one disease in an organization that does only health.

Advantage Ngozi.

Breadth of exposure.  There is a massive difference between doing development work and doing charity work to mitigate the consequences of the lack of development.  Ngozi has done development work in many settings and in many positions both in Nigeria and within the World Bank.  Jim deserves praise for having devoted his time, attention and expertise in medicine to improve health care for people in the developing world—which is certainly one component of development—but his development experience is limited to one sector.

Advantage Ngozi.

Passport.  Jim holds an American passport.  Ngozi is a Nigerian woman.

Advantage Jim.

In this day and age, is that still really all it takes?

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Lant Pritchett is Professor of the Practice of Economic Development, Kennedy School of Government, Harvard University.

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Latest Schedule Update for Thursday’s Conference

Debates in Development: The Search for Answers

When: March 22, 2012 Where: The Great Hall at Cooper Union, New York City 7 East 7th Street, New York, NY View Map This event is free and open to the public, but space is limited

Register online

9:00am-10:00am Coffee and Refreshments

10:00am-10:45am Introductory Remarks from DRI Technology Answers and Development Possibilities Yaw Nyarko, NYU Development Research Institute Finding Answers or Answer-Finding Systems? William Easterly, NYU Development Research Institute

10:45am-12:15pm Session I: Development Goals, Evaluation, and Learning from Projects in Africa Michael Clemens, Center for Global Development Stewart Paperin, Open Society Foundations Bernadette Wanjala, Tilburg University Development Research Institute

12:15pm-1:30pm Lunch Provided Cooper Union Great Hall Lobby

1:30pm-2:30pm  Session II: Keynote Address: Finding Answers in the Global Market Andrew Rugasira, Founder and Chairman, Good African Coffee, Uganda

2:30pm-3:00pm  Coffee Break

3:00pm-4:30pm  Session III: Searching for Answers with Randomized Experiments Abhijit Banerjee, MIT, presentation of the book “Poor Economics” Discussant: Angus Deaton, Princeton University and Woodrow Wilson School

4:30pm  “Poor Economics” Book Signing

Download printable PDF with map and schedule

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How I Would Not Lead the World Bank

Bill Easterly writes for Foreign Policy

I am gratified by the widespread support that my non-nomination for World Bank president has received. My quest to help end poverty has led me to the ends of the Earth. My accomplishments speak for themselves, having successfully offended every official or interest group in any way connected to the World Bank, even the head of maintenance.

I would not lead the World Bank by assembling an expert task force of my fellow social scientists, natural scientists, and random unemployed politicians. I would not ask such a well-qualified expert task force to answer the question "What must we do to end world poverty?" -- especially if we forget to answer the question "Who put us in charge?"

I would not lead the World Bank to ever use the words "civil society." I would not emulate my deservedly respected non-predecessor as World Bank president by giving a speech on the Arab Spring without using the word "democracy," even in a purely descriptive sense. I could not possibly attain a remarkable record of five years of speeches without ever using the word d_m_cr_cy at all.

Read the full article here.

[For someone who does want to lead the World Bank, click here.]

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Public Forum: Steve Forbes Speaks In Defense of the Free Market at its Moment of Crisis

Join us for a Public Forum with Steve Forbes, who will speak "In Defense of the Free Market at its Moment of Crisis," with Bill Easterly as moderator.

When: Thursday, February 23rd, 4:00pm - 5:30pm Where: NYU Campus, Kimmel Center 914 - Silver Board Room

This event is open to the public but space is limited. Register now.

Email dri@nyu.edu with any questions.

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Why aren't children learning? (and what we can do about it)

On Tuesday, February 28th, Abhijit Banerjee, MIT Professor of Economics, will discuss how he is rethinking the fight against poverty in his lecture Why aren’t children learning? (and what we can do about it).  The lecture, part of the Albert Gallatin Lecture series, will take place at 6:30pm at the Labowitz Theatre for the Performing Arts at 1 Washington Place in New York City.

Banerjee is the author, with Esther Duflo, of the recent must-read development book, Poor Economics, which describes his and his colleagues’ work evaluating development interventions through randomized experiments at the MIT Abdul Latif Jameel Poverty Action Lab (J-PAL).

Download the event poster here; to attend the event register with Gallatin.

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Wesleyan's Forum for International Development

David Rice, DRI’s Executive Director, will be speaking at Wesleyan University’s Forum for International Development this Saturday February 18th. David will give the keynote address “Is it Better to Give or Receive? Rethinking International Development,” as well as a lecture on “Innovating Capital Flows to Small Enterprises.” Nathaneal Goldberg, Policy Director at Innovations for Poverty Action, will discuss “How Do We Know What Works in Development?” Other discussion topics include different approaches to development, Wesleyan non-profits, identifying and scaling up effective interventions, and getting involved in development.

Click here for the full program.

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From NYU Abu Dhabi, a Look at Economic Development and Technology in Africa

The Center for Technology and Economic Development (CTED), a DRI and Africa House partner organization based at NYU Abu Dhabi, will hold its annual conference, "Enhancing Economic Development through Technology", on February 12th and 13th.

The agenda reflects CTED’s goal of combining economic principles, technological advances, and human-centric designs to address problems in developing regions, as well as DRI's interest in exploring the role of technology in enabling bottom-up development through non-state actors. One joint DRI-CTED project, for example, evaluates whether providing Ghanaian farmers with market information via text message leads to fundamental changes in the bargaining process between farmers and traders.

At the February conference, Former Ghanaian President Jerry Rawlings, now the African Union envoy to Somalia, and UAE Foreign Trade Minister Lubna Al Qasimi will give keynote speeches. Panels led by an international group of scholars and practitioners—including Mwangi Kimenyi, Director of the Africa Growth Initiative at Brookings, Ethiopia Commodities Exchange Founder and CEO Eleni Gabre-Madhin, and DRI Co-Director Yaw Nyarko—will discuss mobile money, food security, education, energy, and technologies for healthcare.

We’ll be covering some of these speakers and topics here on the DRI website in the coming weeks, so stay tuned.

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Register Now for DRI's Annual Conference

Debates in Development

Please join us for our all-day 2012 Annual Conference Thursday, March 22nd on the NYU Campus

 Confirmed Speakers Include:

Abhijit Banerjee MIT Department of Economics and Abdul Latif Jameel Poverty Action Lab

 Michael Clemens Center for Global Development

 Angus Deaton Princeton University Economics Department and Woodrow Wilson School

 William Easterly NYU Department of Economics and Development Research Institute/AfricaHouse

 Yaw Nyarko NYU Department of Economics and Development Research Institute/AfricaHouse

 Stewart Paperin Open Society Foundations

 Bernadette Wanjala Tilburg University Development Research Institute

Register Now

This event is free and open to the public, but space is limited Detailed agenda and exact location to follow Email dri@nyu.edu with any questions

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Our Winner for Best Insulting Picture

At the Exploiting Africa Academy Awards is... Machine Gun Preacher.

The strange contrast between evil violent African males with the saintly violent white male, who frequently boasts "I am saving African children," was apparently a clincher for our voting audience.

If you want to read more, the most (very) detailed blog post is by Brett Keller (shorter version in Foreign Policy.) Keller concludes that the real Machine Gun Preacher is either a dangerous liar or a dangerous lunatic, or most likely both.  Tales from the Hood is less favorable. Keller also wrote a follow-up piece, based in part on some disturbing new material about alleged neglect at the orphanage the MGP founded.

Fortunately for the cause of discouraging Insulting and Exploitative Pictures about Africa, MGP only earned $1.1. million box office worldwide back on its production budget of $30 million. It was also widely panned by the conventional movie critics.

PS In the Aid Watch spirit of representing dissenting opinions: Chris Blattman presents the case that MGP may still have been useful to call attention to the horrific situation of the victims of the Lord's Resistance Army.

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