[Congressional Record (Bound Edition), Volume 159 (2013), Part 11]
[Senate]
[Pages 15689-15690]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       WORLD BANK REFORM EFFORTS

  Mr. LEAHY. Madam President, the World Bank-IMF Annual Meetings are 
this week, and President Kim is expected to propose and seek approval 
for significant changes to the Bank's strategy, organization, and 
budget. After years of promised but undelivered change, serious and 
lasting reform at the World Bank is long overdue.
  An October 9th Washington Post article, entitled ``Wider Impact 
Eludes World Bank,'' describes the limited impact of billions of 
dollars spent by the Bank on some 700 projects in 100 countries since 
the global financial crisis because of delays, poor oversight, cost 
overruns, and projects that did not deliver promised economic benefits.
  This track record raises serious questions about the World Bank's 
relevance as developing countries struggle with growing demands for 
energy, water, food, education, health care, and jobs.
  There are many capable, dedicated people at the World Bank who chose 
to work there because of their belief in its development mission. But 
for too long the Bank has been an insular, inflexible, arrogant, and 
risk-adverse institution, more responsive to government elites than the 
needs of the poor.
  Beyond that, an October 7th New York Times article entitled ``World 
Bank, Rooted in Bureaucracy, Proposes a Sweeping Reorganization,'' 
describes a recent survey of the Bank's 10,000 employees. The survey 
revealed a ``culture of fear'' and a ``terrible environment for 
collaboration.''
  I have voiced concerns about this culture myself. Fiefdoms are 
jealously guarded by Bank managers. Staff has been retaliated against, 
ostracized, and had their careers destroyed because they had the 
audacity to complain about incompetence, corruption, waste, or 
instances of sexual harassment and abuse.
  For literally decades, I have heard promises of reform from one 
president of the Bank after another, yet the Bank's bureaucracy has 
defended the status quo. The Bank has become expert at appearing open 
to reform while fiercely resisting change.
  So it is refreshing to hear a World Bank president openly acknowledge 
that the Bank has drifted away from its core mission of fighting 
poverty, and that its bureaucracy has become ``concretized.'' President 
Kim has denounced the culture of fear that leads to risk avoidance, and 
he has shown a willingness to challenge the conventional wisdom.
  He has said that the employees of the World Bank's multiple 
components

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must work together if they are to have any hope of meeting the goals of 
eliminating extreme poverty by 2030 and increasing the incomes of the 
poorest 40 percent. He has also said that the World Bank must become 
more efficient and responsive to balance the increasing influence of 
countries like China. And to get there, he is proposing the first major 
strategic realignment in 17 years.
  How does President Kim propose to change the Bank?
  He has already shaken up senior management and brought in new people 
from outside. And he is proposing changes to the way the World Bank is 
organized and does its work. He wants to take down the bureaucratic 
silos that are inefficient, promote rivalries, and keep people from 
working together.
  President Kim wants the technical staff to have greater influence 
within the Bank and he wants them to share their knowledge with 
countries. He thinks the Bank should be a better partner, helping 
governments make sound education, health, and job training investments 
for their people.
  President Kim recognizes that the Bank requires increased resources 
to achieve its goals but that the Bank's long-term financial health is 
ultimately dependent on its ability to become more self-reliant. He 
wants to leverage private sector funding, increase revenue, and seek 
new financial tools to support country development.
  He proposes to cut the World Bank's operating costs by $400 million 
over 3 years. He estimates that for every $100 million reduced in the 
Bank's operating budget an additional $1 billion would be available for 
new loans.
  I am encouraged by President Kim's energy, focus, and willingness to 
address long-standing entrenched problems at the World Bank. He and the 
Bank's many employees should know that those of us in Congress who are 
responsible for appropriating the funds for the U.S. share of payments 
to the World Bank will be strongly supporting his efforts, and basing 
future appropriations on the results.

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