Economy | Educate

How to find the best leader for the World Bank

by Mohamed A. El-Erian, The Washington Post, February 16th 2012 -

Here we go again.

Officials tend to preach the importance of following a merit-based, open and transparent process in selecting the head of an influential international organization. Until, that is, it comes to a position that has traditionally gone to their own country. Then they immediately revert to an entitlement mentality and, in the process, make a mockery of their argument.

This has been the pattern when selecting the heads of the World Bank and International Monetary Fund (IMF), two important institutions with more than 180 member countries. Due to a “tradition” that dates to the organizations’ founding almost 70 years ago, an American has always served as president of the World Bank and a European as managing director of the IMF.

For at least 10 years, there has been general agreement that this arrangement is outmoded and feudalistic. It speaks to a world long since past, and it is deeply inconsistent with the principles of meritocracy, competition and transparency that both America and Europe pride themselves on. Yet, when push comes to shove, neither is willing to abide by what both constantly advocate for others around the globe.

Almost a year ago, when the then-head of the IMF, Dominique Strauss-Kahn, was forced to resign suddenly, European leaders showed no shame in preempting an open, merit-based system to replace him. Their audacity was so blatant, and their willingness to ignore international attitudes so appalling, that even U.S. officials expressed discomfort and reservations, both in public and in private, with the process.

Read the rest of the article here: http://www.washingtonpost.com/opinions/world-bank-opening/2012/02/16/gIQAatgzHR_story.html