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CGD in the News

Critics plan offensive as IMF-World Bank crisis deepens

April 27, 2006

CGD's Vice President, Dennis De Tray, is quoted in this article about the crisis of legitimacy at the IMF.

From the article:

The budgetary crisis is, however, only one aspect of overall crisis of the institution. The policy prescriptions offered by Bank economists is increasingly seen as irrelevant to the problems faced by developing countries, says de Tray, who served as the IMF’s resident officer in Hanoi and the World Bank’s representative in Jakarta.

The problem, he said, lies in the emphasis at the Bank’s research department on producing “cutting edge” technical economic work geared to the western academic world rather than coming out with knowledge to support practical policy prescriptions. The Bank is currently staffed by some 10,000 professionals, most of them economists, and de Tray claims that “there is nothing wrong at the World Bank that a 40 per cent staff reduction would not fix.”