Will the Bank Streamline and Reform?

In October, the new World Bank president, Jim Yong Kim, announced a vision for the organization that might change the way it does business.  

Beginning with the creation of a  “clear and measurable bottom line” in the form of targets for the World Bank’s goals of ending poverty and building shared prosperity he continued with the need to “take a hard look” at the bank’s operations and ensure functions are performed “as effectively as possible”.

Further, President Kim stated that the bank will “change incentive structures to reward implementers and fixers” which means that the Bank board must “streamline our procedures, simplify our processes, and cut down project preparation time.” Projects should not take two years to go from concept to implementation, Kim stated. 

Finally, he talked about integrated solutions for clients. These actions, Kim explained, are needed to transform the World Bank into a “solutions” bank.

If this comes to pass in 2013, which is the target date, it is a welcome sign.  Of course, he is absolutely right that a project should not take two years from concept to implementation although such a broad generalization should be tempered by the fact that major infrastructure projects may take at least that long.  However, for non-infrastructure initiatives such as technical assistance on social, economic and environmental work, the time from concept to actually doing the work does take far too long.  After all, many TA interventions such as land policy and registration reforms are not rocket science; those in the business know what needs to be done – and so do the professionals in the bank.

What is important in this plan is the overhaul of the bank’s investment lending policy.  At the beginning of November the bank approved a plan to consolidate policies and procedures related to investment lending, to take effect in 2013.  One of the changes includes the use of its rapid response option for natural disasters for small states.

Ultimately, the bank will need to look more closely at its clients, how funds are handled and whether the management tools used by the client are actually working for the identified need – or more for the benefit of those in the client’s government.  If the new policies do not address and provide for independent monitoring and assessment of the use of loan funds, then effectiveness will remain questionable despite the acceleration of procedures.