A memo to next World Bank president

• Published date: 08 March 2023
• Publication title: The Korea Times

The World Bank will soon pick a new president. With the world facing a confluence of climate, debt, energy, and security crises, the leadership change comes at a pivotal moment for the institution. A more active leader could put the Bank in pole position to assist countries in crisis, help fight climate change, and facilitate cooperation between the United States and China, despite their escalating rivalry. But to do that, the new president must avoid the traps into which his well-intentioned predecessors have fallen.

The leadership race has moved quickly. A week after current President David Malpass announced on Feb. 15 that he would step down, the World Bank's Executive Board announced that nominations would be accepted until March 29 and urged countries to nominate women. But within a day of the Board's statement, the U.S. announced that its candidate would be Ajay Banga, effectively ending the real contest, given that every World Bank president has been the U.S. nominee (likewise, the International Monetary Fund's managing director has always been a European nominee).

Banga is certainly qualified for the job. As the former CEO of Mastercard, he has experience running a global business with staff delivering services all over the world. He has also worked in microfinance and advised U.S. Vice President Kamala Harris.

But the World Bank is a large and complex organization whose mission is to deliver services and financing to its most needy members. As such, its new leadership must be guided by several practical imperatives.

First, the president should not be tempted to embark on yet another reform of the organization. Instead, they should focus on making a real difference to those the Bank exists to serve. In the past, some World Bank presidents immediately hired advisers to transform the Bank itself, devoting enormous resources to changes driven by empty promises to "save money" or "deliver better results." This is a tempting way to make one's mark in a hurry, but it is far better to drive the Bank to deliver on two or three urgent priorities. Former presidents have underestimated their power to achieve change by recognizing excellence and promoting innovators from within the Bank.

Second, the new president must lead on behalf of all countries. This is easier said than done. In theory, the president is selected by the Executive Board and leads the organization on behalf of all the countries that belong (and contribute) to it. In practice, however, World Bank...