World Bank wackiness explains odd U.S. choice
By Rob Cox
This column appears in the April 9 issue of Newsweek. The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
If the competition to become the World Bank‚Äôs next president were a normal process, Jim Yong Kim wouldn‚Äôt stand a chance. The Dartmouth College president lacks two of the traditional qualifications for running an international lending body: financial savvy and diplomatic experience. But the race to lead the World Bank is everything but ordinary – particularly this time.
Americans have always helmed the bank, which doled out some $57 billion in loans and grants to poor and middle-income countries last year alone. Except for a congressman (Barber Conable) and a Ford Motor boss (Robert McNamara), all 11 chiefs hailed from Wall Street firms like Lazard Freres, First Boston and Chase Bank. Even outgoing president Robert Zoellick spent some time on the payroll of Goldman Sachs.
Not so the Korean-born physician Kim. At 52, he has spent the past three years in bucolic Hanover, New Hampshire, where his biggest diplomatic challenge appears to have been quelling -with mixed success, according to a recent Rolling Stone expos√© -a fondness among its fraternities for painting their pledges in puke and even forcing them to eat it in omelets. But there‚Äôs logic to the Obama administration‚Äôs choice for the job.
Though it was decreed at the 1944 Bretton Woods confab that the United States would name the bank‚Äôs president, it has 186 other stakeholders. And for the first time ever, they‚Äôre making their voices heard. When the World Bank board meets this week in Washington, it will have two other candidates to interview: Ngozi Okonjo-Iweala and Jos√© Antonio Ocampo, the former finance ministers of Nigeria and Colombia, respectively.
In another contest, their backgrounds would give them an edge. But here‚Äôs why Kim may be an inspired choice: if poverty‚Äôs insidious bedfellow is disease, it knows few enemies like Kim. He has a superhero‚Äôs resume of fighting the dark forces of illness. Kim was a co-founder of Partners in Health, which is seeking to eradicate infectious diseases like tuberculosis in the poorest nations on the planet. He chaired the Department of Global Health and Social Medicine at Harvard Medical School. In 2003, he moved to the World Health Organization and directed its efforts in fighting HIV and AIDS.
True, none of this has anything to do with making loans. But that‚Äôs sort of the point. Kim‚Äôs career has focused on the outcomes of development rather than the process. At a moment when American control of the bank is being challenged by the primary recipients of its largess, that‚Äôs a critical distinction.
Kim may not gain the consensus of all 25 World Bank directors when he sits down with them on Wednesday. BRIC nations are keen to flex their influence – last month in New Delhi they even discussed creating their own version of a World Bank. But putting a development specialist in charge for the first time would certainly beat replicating past precedent. Imagine President Obama naming Goldman Sachs Chief Executive Lloyd Blankfein to lead a global effort to eliminate poverty.