World Bank Establishment Agreement

Another source of criticism was the tradition that a U.S. executive of the bank was implemented because the United States provides most of the World Bank`s financing. „When World Bank economists visit poor countries to distribute money and advice,“ The Economist noted in 2012, „they systematically tell governments to reject nepotism and fill every important job with the best available candidate. That`s good advice. The World Bank should do that. [84] Amid the global fight against the COVID 19 pandemic, the World Bank announced a $12 billion plan in September 2020 to provide a vaccine to „low- and middle-income countries“ as soon as it was approved. The plan is expected to affect more than two billion people worldwide. McNamara was replaced in 1980 by U.S. President Jimmy Carter`s candidate, Alden W. Clausen. [16] [17] Clausen replaced many of McNamara`s staff and created another centre of gravity. His 1982 decision to replace the bank`s chief economist, Hollis B.

Chenery, with Anne Krueger was an example of this new focus. Krueger was known for his criticism of development finance and for calling Third World governments „rent-seeking states.“ (a) Each member designates his central bank as the custodian of all the Bank`s assets in its currency or, if it does not have a central bank, the other institution that is acceptable to the Bank. The President of the Bank is the Chairman of the World Bank Group as a whole. The Chair is responsible for the management of the Bank`s Board of Directors and Executive Management meetings. Traditionally, the President of the Bank has always been a U.S.-appointed citizen, the Bank`s largest shareholder (the Managing Director of the International Monetary Fund has always been a European). The nominee is subject to the confirmation of the Board of Directors, which is working for a renewable five-year term. While most World Bank presidents had banking experience, some did not. [25] [26] Prior to 1974, World Bank reconstruction and development credits were relatively low.