Kaberuka is currently a Hauser Leader-in-Residence at the John F. Kennedy School of Government at Harvard University. At CGD he will be working on finance and development issues, including serving as a member of our High-Level Panel on Multilateral Banking, which will issue its report in the coming months.
CGD Policy Blogs
When President Takehiko Nakao of the Asian Development Bank (ADB) visited CGD earlier last year, he described management’s groundbreaking proposal for a major restructuring of the bank’s financial model that we view as both sensible and creative.
Here are my wishes for commitments that countries could make at each of three big development-relevant international events in the next 12 months. I find it harder than ever to make such a list this year; global cooperation is becoming harder than ever to manage. With the rise of China and other emerging markets, cooperation in what is now a multipolar system is more necessary than it has been in decades, but more and more elusive. That puts a premium on strengthening the world’s international institutions and on—yes—UN and other international conferences and convenings and conversations in search of a global consensus on norms, programs, actions, and goals
For the first time in its seven-decade-long history, World Bank staff staged a work stoppage earlier this month. Staff are unhappy about the “Change Process,” aka the ongoing internal reorganization that President Kim initiated on his arrival at the bank now more than two years ago.
Here’s a fact about the IMF reform package, agreed in 2010 in a negotiation led by the United States and since approved by 158 countries, but (embarrassingly and cavalierly) stalled in the US Congress: It would increase Ukraine’s access to IMF resources to deal with its financial troubles by more than twice the special $1 billion of loan guarantees for Ukraine that the Obama Administration has proposed to the Congress — and potentially almost six times as much — at virtually no cost to US taxpayers.
USA Commits Own-Goal on the IMF
I'm an American citizen. I'm embarrassed. The US Congress again has failed to include in the omnibus budget bill finally passed by the House (and now going to the Senate) the trivial amount needed for the United States to finally approve critical changes at the IMF: a doubling of its resources and reform of its antiquated governance.
This week Senate appropriators failed to include an OK for an International Monetary Fund quota increase in the Senate version of the continuing resolution—the spending bill to keep open the US government for the remaining six months of the fiscal year 2013. The administration had requested Senate appropriators approve a transfer of previous US commitments from one IMF account to another -- a transfer involving virtually no cost for US taxpayers.
Many obstacles to development transcend national borders and therefore cannot be adequately addressed within a single country. These include issues such as drug resistance and other cross-border health risks, financial crises contagion, money laundering, water scarcity, fisheries collapse and, of course, climate change. Economists call efforts to address these problems Global Public Goods (GPGs). Like other public goods, funding for GPGs is chronically in short supply: of $125 billion in annual official development assistance (ODA ) only about $3 billion goes to GPGs.
Last week our CGD and Peterson Institute colleague Arvind Subramanian called on the IMF to speak truth to power, in an elegant cri de coeur in the Financial Times. The IMF, he notes: “has not provided independent intellectual leadership, most evidently on the eurozone crisis. And it is unprepared to provide stability for the next big global crisis.”
World Bank president Jim Kim delivered a speech and responded to questions today at Brookings in his first public event since taking the helm at the world’s top development organization on July 1. He struck me as thoughtful, well-informed, articulate and dedicated to multilateralism and the bank’s mission of reducing global poverty. You can see his speech and the Q&A here.