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What the World (Bank) needs now…

World_bankNgozi Okonjo Iweala, former finance minister of Nigeria and currently a fellow at the Brookings Institution, makes suggestions for the direction of the World Bank.


Submitted by Dr James Daniel Paul on
I fully appreciate the comments of Ngozi Okonjo Iweala. Institutions like the World Bank not only enable poverty alleviation programmes but also enable the transition of the monetary assets into the physical assets. Non-redeployment of capital creates inflation, depreciation and busts of the bubbles. Therefore just as the banker is required to ask questions to guide the companies, it is essential for the international institutions like the world bank to ask the right questions to put the policy makers on the right track. I remember in 1991 in India, because of the balance of payment crisis then finance minister (now prime minister) Dr. Manmohan Singh forced the government to look into the reform measures suggested by the researchers like Prof. Chelliah. Else who would have cared about the reforms in the taxation? It was the reforms in the taxation that had lead to the opening of the economy. Though Prof. Chelliah was not a Bank guy, It took Dr. Manmohan who was from international institution to see the since in what Prof Chelliah was speaking. So International institutions play a key role in the converting the monetary gains into physical assets. They are infact instrumental in enhancing the equity in an humane manner. We know inequity in the distribution of income leads to social problems like terrorism and civil wars. The better way to avoid civil wars and disturbances is to empower international institutions like the World Bank. It is immature of the petty politicians to scandize people, in a growing organisation like the World Bank, it is necessary to decentralise the power so as the scandals are reduced. Further though one cannot think of a better choice than Prof. Zoellick (I’ve heard him once in Chennai in India while he was on a campaign on the discussions on the Doha round) , It would be wise to make the nominations appear more democratic.

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