Contents

• Introduction
• Background
• What is the World Bank?
• Leadership Selection at the World Bank
• Formal Process for Selecting the World Bank President
• Voting at the World Bank
• Reform Efforts
• The 2012Reform Efforts and the 2019 Selection Process

Summary

On March 23, 2012, President Obama nominated Dartmouth CollegeJanuary 7, 2018, World Bank President Jim Yong Kim announced that he would resign by February 1, three years before the expiration of his second five-year term in 2022. Following his resignation, Dr. Kim is to join Global Infrastructure Partners (GIP), a private equity fund that invests in projects in advanced and developing countries. Prior to his nomination to the World Bank by President Barack Obama in 2012, Dr. Kim served as the president of Dartmouth College.

The nomination period for the next president ends on March 14, after which the Executive Board is to select three candidates for interviews. To date, the only candidate is David Malpass, the Treasury Department's Under Secretary for International Affairs, nominated by President Trump on February 6, 2019. Following the interviews, the Executive Board is to select the next president, something which it aims to do before the spring meetings in April 2019.

Since its founding after World War II, the presidency of the World Bank has been held by a citizen of the United States, the Bank's largest shareholder. According to an informal agreement among World Bank member countries, a U.S. candidate is chosen as the president of the World Bank and a European candidate (typically French or German) is appointed as the managing director of the International Monetary Fund (IMF).

The formal requirement for the selection of the World Bank president is that the executive directors appoint, by at least a 50% majority, an individual who is neither a member of the Board of Governors nor Board of Executive Directors. There are no requirements on how individuals are selected, on what criteria, or by what process they are vetted. Although the executive directors may select the IMF managing director by a simple majority vote, they historically aim to reach agreement by consensus. With these factors combined, the custom guaranteeing European leadership at the IMF and American leadership at the World Bank has remained in place.

This custom has been subject to increasing criticism during the past two decades. The first line of criticism is directed at the current distribution of voting power, which critics contend does not account for the increasing integration of developing countries into the global economy. A second line of criticism is directed at the method of selecting World Bank and IMF leadership, which critics argue elevates nationality above merit and undermines the legitimacy and effectiveness of the institutions. Calls for a more open, transparent, and merit-based leadership selection process have been made consistently in the past, and at times have been incorporated into communiqués of various summits, but have yet to change the leadership selection process at either institution.

Introduction

World Bank President Jim Yong Kim recently announced that he was stepping down in February 2019 to join Global Infrastructure Partners, a private equity fund that invests in projects in advanced and developing countries. Kim's unexpected resignation, combined with his joining of a private firm that could directly compete with the World Bank for investments, raises questions for policymakers as they nominate and select a new president for the World Bank, a central component of the U.S.-led international economic order for the past eight decades.

According to an informal agreement among their member countries, the U.S. nominee is chosen as the World Bank president and a European candidate (typically French or German) is appointed as managing director of the International Monetary Fund (IMF). This custom has been subject to increasing criticism during the past two decades. The first line of criticism is directed at the current distribution of voting power, which critics contend does not account for the increasing integration of developing countries into the global economy. A second line of criticism is directed at the method of selecting World Bank and IMF leadership, which critics argue, elevates nationality above merit and undermines the legitimacy and effectiveness of the institutions.

This report provides information on the 2019 World Bank selection process and discusses efforts to reform the selection process.

Background What is the World Bank?

The World Bank is a multilateral development bank (MDB) that offers loans and grants to low- and middle-income countries to promote poverty alleviation and economic development.¹ The World Bank has near-universal membership, with 189 member nations. U.S. membership in the World Bank is authorized by a federal statute known as the Bretton Woods Agreements Act (22 U.S.C. 286 et seq.).² Only Cuba and North Korea, and a few microstates such as the Vatican, Monaco, and Andorra, are nonmembers.

Two of the Bank's five facilities, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), lend directly to governments to finance development projects and policy programs in member countries. The IBRD provides middle-income developing countries with loans at near-market rates using funds raised by the World Bank on international capital markets. IDA was established in 1960 due to concerns that low-income countries could not afford to borrow at the near-market rate terms offered by the IBRD. IDA provides grants and concessional loans funded by contributions from donors and transfers from the IBRD to low-income countries. A country's eligibility for IBRD or IDA financial assistance depends on its relative poverty, defined as gross national income (GNI). For 2019, countries with a per capita GNI below $1,145 are eligible for IDA funding.³ IBRD commitments totaled $23.6 billion in 2018. Commitments from IDA to low-income countries were $24 billion in 2018 (Table 1).⁴ Three other World Bank-affiliated organizations are dedicated to promoting private sector finance and investment in low-income countries. The International Finance Corporation (IFC) promotes private sector development in developing countries by making loans and investments in small- and medium-sized companies in those countries. The Multilateral Investment Guarantee Agency (MIGA) provides private investors with insurance coverage against noncommercial risk (expropriation, war and civil disturbance, and/or breach of contract) in developing countries. The International Center for the Settlement of Investment Disputes (ICSID) provides dispute resolution for investment disputes between governments and foreign investors. Table 1. World Bank Group Commitments

Fiscal Years 2018 and 2017 (in U.S. billions)

World Bank Group	FY2018	FY2017
International Bank for Reconstruction and Development (IBRD)	22.6	22.6
International Development Association (IDA)	19.5	19.5
International Finance Corporation (IFC)	11.9	11.9
Multilateral Investment Guarantee Association (MIGA)	4.8	4.8
Total	58.8	58.8

The United States is the largest contributor to the World Bank, having the largest share of the IBRD's subscribed capital, $46.4 billion (16.88%) of a total of $275 billion.⁵ As the largest contributor, the United States holds a single seat on the 25-member Board of Executive Directors and carries 16.32% of the total votes in Bank decisionmaking, which provides veto power on decisions requiring an 85% majority vote. The largest shareholders after the United States are Japan (6.89% of voting power), China (4.45%), Germany (4.03%), France (3.78%), and the United Kingdom (3.78%).⁶ The large voting power of the United States ensures the U.S. ability to veto major policy decisions at the Bank.

A citizen of the United States has always held the presidency of the World Bank. The World Bank's president is chairman of the Board and elected by the Board of Directors. The president is the chief of the operating staff of the Bank and conducts, under direction of the executive directors, the ordinary business of the Bank. The Bank's 12^th president, Jim Yong Kim, has served since 2012. On September 27, 2016, Dr. Kim was reelected as the World Bank president, for a second five-year term beginning July 1, 2017.⁷

Governance Structure of the World Bank

The Board of Governors is the highest policymaking authority of the Bank. All 189 countries are represented on the Board of Governors, usually at the finance minister or central bank Kim as the U.S. nominee to succeed Robert Zoellick as World Bank president. Since its founding after World War II, the presidency of the World Bank has been held by a citizen of the United States, the Bank's largest shareholder. The current Bank President, Robert Zoellick, nominated by President George W. Bush in May 2007, will step down at the conclusion of his five-year term in June 2012. Dr. Kim is competing against two other candidates for the position: Jose Antonio Ocampo, a Colombian national and professor at Columbia University; and Ngozi Okonjo-Iweala, a Nigerian national and finance minister of Nigeria.

According to an informal agreement among their member countries, the U.S. nominee is chosen as the World Bank President and a European candidate (typically French or German) is appointed as Managing Director of the International Monetary Fund (IMF). This convention has come under increasing strain over the past two decades. As the economies of developing countries become more integrated into the global economy, the distribution of voting power is being challenged. A second line of criticism is directed directly at the method employed to select World Bank (and IMF) leadership. Any process, critics argue, that elects the World Bank president based on nationality and not merit undermines the legitimacy and effectiveness of the institution. Proposals for a more open, transparent, and merit-based leadership selection process have been made consistently in the past, and at times have been incorporated in communiqués of various leaders summits, but have yet to change the outcome at either of the institutions.

The formal requirements for the selection of the World Bank President is that the Executive Directors appoint, by at least a 50% majority, an individual who is neither a member of the Board of Governors or Board of Executive Directors. There are no requirements on how individuals are selected, on what criteria, or by what process they are vetted. Moreover, although the Executive Directors may select its Managing Director by a simple majority vote, they historically aim to reach agreement by consensus. With these factors combined, the convention guaranteeing European leadership at the IMF and American leadership at the World Bank has remained in place.

The three candidates are to have individual interviews with the World Bank's Executive Board of Directors. It is expected that a decision on the World Bank President will be reached prior to the 2012 spring IMF/World Bank meetings.

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Introduction

On March 23, 2012, President Obama nominated Dartmouth College President Jim Yong Kim as the U.S. nominee to succeed Robert Zoellick as World Bank president. Since its founding after World War II, the presidency of the World Bank has been held by a citizen of the United States, the Bank's largest shareholder. The current Bank President, Robert Zoellick, nominated by President George W. Bush in May 2007, will step down at the conclusion of his five-year term in June 2012.

According to an informal agreement among their member countries, the U.S. nominee is chosen as the World Bank President and a European candidate (typically French or German) is appointed as Managing Director of the International Monetary Fund (IMF). This convention has come under increasing strain over the past two decades. As the economies of developing countries become more integrated into the global economy, the distribution of voting power is being challenged. A second line of criticism is directed directly at the method employed to select World Bank (and IMF) leadership. Any process, critics argue, that elects the World Bank president based on nationality and not merit undermines the legitimacy and effectiveness of the institution. Despite repeated G-20 statements calling for a transparent and merit-based selection, the current procedures of confidential interviews and selection "by consensus" have stymied reform efforts.

This report provides information on the 2012 World Bank selection process and discusses efforts to reform the selection process.

Background

What is the World Bank?

The World Bank is the largest and oldest (created in 1946) of the multilateral development banks (MDBs). In addition to the World Bank, the United States is a member of four regional development banks: the African Development Bank (AfDB); the Asian Development Bank (AsDB); the European Bank for Reconstruction and Development (EBRD); and the Inter-American Development Bank (IDB).

At their most basic, the MDBs are international institutions that provide financing funded from private capital markets to developing countries in order to promote economic and social development. Project loans include large infrastructure projects, such as highways, power plants, port facilities, and dams, as well as social projects, such as health and education initiatives. Policy-based loans provide governments with finance in exchange for implementing particular government policies, such as the privatization of state-owned industries or the reform of agriculture or electricity sectors. In exchange for MDB loans, the borrowing government is required to implement economic reforms, which may include sectoral adjustment and institution-building programs, and commitments to increase investments in education, health, and other social areas.

World Bank member countries participate in the governance of the World Bank, at different layers, through the Board of Governors, the Board of Executive Directors, the World Bank President, and the Development Committee.

The United States is the largest contributor to the IBRD, having subscribed $26.49 billion of the $157.3 billion subscribed capital (16.84% of total committed shares). As the largest contributor, the United States holds a single seat on the World Bank's Board of Executive Directors and carries 16.38% of the total votes in IBRD decision-making, which provides veto power on decisions requiring an 85% majority vote.

The Trump Administration has continued to support U.S. participation in the international financial institutions (IFIs) and has funded recent U.S. MDB commitments.⁸ The Trump Administration is supporting a $60.1 billion capital increase for the World Bank's main lending facility, the IBRD, which would raise its capital from $268.9 billion to $329 billion.⁹ World Bank members also endorsed a $5.5 billion capital increase for the IFC, which would more than triple the IFC's capital base from $2.57 billion to $8.2 billion. The Trump Administration supports the capital increase, which is to be accompanied by reforms designed, in part, to address a long-standing concern for many U.S. policymakers: high levels of World Bank lending to upper-middle income countries, especially China. In a statement at the 2017 IMF and World Bank spring meetings, U.S. Treasury Secretary Steven Mnuchin stated that, "the relationship between the World Bank and more creditworthy countries [such as China] should mature over time, with the absolute level of borrowing declining as countries become better able to finance their own development objectives."¹⁰

Leadership Selection at the World Bank

Selecting the leadership at the two major international financial institutions (IFIs)—the IMF and the World Bank—is guided by a 60-year old tradition that the World Bank president is an American and that the IMF Managing Directormanaging director is a European. The informal agreement reflects the political and economic balance of power at the end of World War II. At the time, the United States believed that the World Bank should be headed by an American since the United States was the only capital surplus nation, and World Bank lending would be dependent on American financial markets. The U.S. SecretaryofSecretary of the Treasury at the time, Fred Vinson, believed that if an American representative headed the World Bank, the IMF must be headed by a non-American.¹11 Moreover, he noted, "it would be impracticable to appoint U.S. citizens to head both the Bank and the Fund."²12

Despite the growth of world capital markets, and the fact that the World Bank is no longer reliant on U.S. capital markets, the convention on the IMF and World Bank selection has remained intact. Moreover, theThe U.S.-E.U.EU agreement is not unique. According to a comprehensive 2009 study:

A 2009 study finds that

Informal agreements allocating positions of authority and decision making pervade international organizationorganizations. Whether in secretariats or political, judicial, and administrative bodies, tacit understandings that assign representation to certain states or groups of states are the norm, not the exception....³

13

The Articles of Agreement of the African Development Bank (AfDB) and the Asian Development Bank (AsDB) each specify that only citizens of regional countries may serve as presidents of those banks. By tradition, the Japanese Finance Ministry nominates a Japanese citizen to be president of the AsDB while a competitive process is used to select the AfDB president. The Articles of the Inter-American Development Bank (IDB) and the European Bank for Reconstruction and Development (EBRD) specify only that their president must come from a member country. By tradition, the IDB president is selected by a competitive process from among citizens of the Latin American countries. The EBRD president is also elected by a presumably competitive process, though only French and German citizens have served to date in that capacity and there is normally only one nominee.

Second-tier offices in these institutions have also traditionally been reserved for U.S. citizens. First Deputy Managing Directordeputy managing director at the IMF and Executive Vice Presidentexecutive vice president at the IDB are traditionally U.S. citizens. These individuals are appointed by the chief executive of the institution, but in the case of the IMF and IDB an individual is typically designated by the U.S. Government. At the Asian Development Bank and EBRD, one of the vice presidents for an operational region has typically been a U.S. citizen.

Rapidly emerging economies have repeatedly stated that unless their nationals are able to effectively compete for leadership positions at the major international financial institutions, they would pursue efforts to create an alternative institutions. The creation of the development bank was discussed at the March 2012 summit of Brazil, Russia, India, and China. Some analysts argue that calls for a non-European director from the emerging economies mask divides that make it difficult for emerging economies to unite behind one credible candidate. Emerging economies could not unite behind a single alternative candidate to the European nominee for IMF Managing Director in 2011, and a similar situation may occur at the World Bank, with Latin American and African Executive Directors splitting their support among the two candidates.

However, despite these restrictions, there have been successful efforts to open up the selection process across the MDBs. In 2015, the AfDB members elected Akinwumi Adesina of Nigeria, after a transparent election involving seven other candidates. Adesina garnered 58% of the total vote of AfDB shareholders.¹⁴ The 2012 World Bank election was the first to include several candidates and Kim's nomination was, unlike past nominations, not unanimous. The announcement of Kim's selection noted that a new selection process (introduced in 2011) yielded multiple nominees (former Nigerian Finance Minister Ngozi Okonjo-Iweala and former Colombian Finance Minister and United Nations Under Secretary-General for Economic and Social Affairs Jose Antonio Ocampo) and that the nominees received support from different member countries.¹⁵ Formal Process for Selecting the World Bank President

The formal guidelines for choosing the World Bank president are laid out in the Bank's Articles of Agreements and Bylaws.⁴16 Article V, Section 5, states that "[t]he Executive Board shall select a President who shall not be a Governor or an Executive Director." This decision may be reached by a simplysimple majority of the Executive Board. Section 13(c) of the Bank's bylaws stipulatestipulates the terms of service. World Bank presidents are elected for renewable five-year terms. Neither the Articlesarticles nor the bylaws articulate any specific qualifications for the position of Presidentpresident of the World Bank.

The Bank's Articles of Agreement, however, are silent on any requirements on how individuals are selected, on what criteria, or by what process they are vetted. There is no formal search process for candidates. Nominations can only be made by the 25 World Bank Executive Directorsexecutive directors and there is no concerted search process of the Executive Board to identify and vet possible candidates.

Voting at the World Bank

In 2000, two internal working groups (the World Bank Working Group to Review the Process for Selection of the President and the International Monetary Fund Working Group to Review the Process for Selection of the Managing Director) were created to discuss the selection procedure. A joint draft report of the working groups was endorsed by the executive directors on April 26, 2001, but never formally implemented. The report declared, among other things, that transparency and accountability are critical to the selection process.¹⁷

Instead of implementing the 2001 report's recommendations, the Executive Board adopted in 2011 a procedure that specified qualification criteria, established a nomination period, and provided for an interview process. Critics point out that the agreed procedures remain vague and largely nontransparent. Most notably, development expertise is not included as a qualification and the decision will be taken not by public vote, but rather by consensus according to prior practice. Declaring the importance of an "open, transparent, and merit-based" process, yet continuing to perpetuate the status quo, according to three former World Bank chief economists, is hypocritical, and "destroys the trust and spirit of collaboration needed to manage the profound problems facing the world."¹⁸

The decision to select a new World Bank president is to be made by a majority vote of the World Bank's Executive Board. Unlike the United Nations General Assembly, which relies on a one-person, one-vote governance system, the World Bank uses a weighted voted system. Voting is loosely based on contributions to the Bank. The five largest shareholders (United States, Japan, Germany, France, and the United Kingdom) have their own seat on the Executive Board. In addition to the five largest shareholders, China, Russia, and Saudi Arabia have enough votes to elect their own Executive Directorsexecutive directors. All other countries have gravitated into mixed-state groupings or constituencies. These constituencies range in size from three3 countries (South Africa, Angola, and Nigeria) to 21.¹⁹ The mixed-state constituencies are flexible in their membership. Countries have periodically switched constituencies, often to a new group that will allow them to have a bigger vote or leadership role.

Unlike the eight countries that have their own ED, the influence of countries in mixed-state constituencies is not equivalent to their quota-determined voting weight. Since they vote in constituencies, very small countries can easily be sidestepped by the larger countries in the constituency. For many countries at the World Bank, they "can at best express a divergent opinion orally but cannot bring it to bear in the form of a vote."⁵20 Executive Directorsdirectors must cast their votes as single unit, even though some of the countries they represent may disagree with their position. There is no provision for splitting a constituency's vote.

At the World Bank Executive Board, the countries of the European Union have more than 30% of the votes in the World Bank. In general, they tend to agree with each other on most policy issues. Taken together, the United States, European countries, and Japan (9.4% voting share) control at least 50% of the votes on the Executive Board.

The selection process is also constrained by informal guidelines among the Executive Board. Rather than formal voting, the decision on selecting an Managing Director has been made historically by consensus. If there is more than one candidate under consideration, potential candidates are weeded out by the Executive Board through informal straw polls.

There is no formal congressional involvement in the selection of Bank management. U.S. participation in the World Bank is authorized by the Bretton Woods Agreement Act of 1945.⁶21 The act delegates to the President ultimate authority under U.S. law to direct U.S. policy and instruct the U.S. representatives at the Bank. The President, in turn, has generally delegated authority to the Secretary of the Treasury. With the advice and consent of the Senate, the President names individuals to represent the United States on the Executive Board of the World Bank. The position of U.S. executive director is currently vacant. The alternate executive director is Erik Bethel.²² The Executive Board has authority over operations and policy and must approve any loan or policy decision. The U.S. Executive Directorexecutive director is supported primarily by Treasury Department staff. Unique among the founding members, the Bretton Woods Agreement Act requires specific congressional authorization for certain decisions, such as changing the U.S. share at the Bank or to amendamending the Articles of Agreement. However, neither the approval of individual loans nor the selection of the Managing Directormanaging director requires congressional approval.

Reform Efforts

and the 2019 Selection Process

The European-U.S. arrangement to split the leadership at the IMF and World Bank has generated controversy, which may undermine the effectiveness of the eventual nominee.²³ Critics of the current selection process make two general arguments. First, the gentlemen's agreement on IMF and World Bank leadership is seen as a relic of a global economy that no longer exists. Whereas the United States and Europe dominated the post-warpostwar economy, the current international economy is more diverse. Developing and emerging market countries contribute half of global output, up from 25% thirty30 years ago.⁷ At the same time, the share accounted for by the G7 countries has declined from 65% in 2002 to 51% in 2010.⁸

Figure 1. Share of World GDP, 1971 - 2011

Source: International Monetary Fund, adapted by CRS. Notes: G7: Canada, France, Germany, Italy, Japan, United Kingdom, and the United States; BRICs: Brazil, Russia, India, and China; Other G20: Argentina, Australia, Indonesia, Japan, Mexico, Saudi Arabia, South Africa, South Korea, and Turkey; ROW: Rest of world. In 2010, South Africa joined the BRIC group.

24 Over the past several decades, the balance of global economic power has been shifting from the United States and Europe to China and a number of other fast-developing countries (Figure 1). These economies account for rising shares of global GDP, manufacturing, and trade, and also are driven by a significant expansion of trade among the developing countries (South-South trade). These shifts are driven by growing economic integration and interdependence among economies, particularly through new global production and supply chains that incorporate inputs from many different countries.²⁵

Figure 1. Share of World GDP (Real and Projected)

Based on Purchasing Power Parity (PPP)

Source: The World Bank.

Note: Figures for 2018-2022 are projected.

In recent years, China has also invested in, created, and led a range of institutions and initiatives, including the Asian Infrastructure Investment Bank (AIIB) and other funding mechanisms, such as the Silk Road Fund and the New Development Bank (also known as the BRICS Bank), a collective arrangement with Brazil, Russia, India, and South Africa.²⁶ At the same time, China is pursuing its own bilateral and regional trade agreements, such as the proposed Regional Comprehensive Economic Partnership (RCEP) with 15 other countries in the Asia Pacific. China has also positioned itself to act as a lender of last resort through monetary arrangements such as the BRICs Contingent Reserve Arrangement (CRA) and the Chiang Mai Initiative Multilateralization (CMIM).²⁷

In such a diverse global economy, any agreement that grants the leadership position based on nationality, critics argue, unnecessarily limits the pool of potential candidates, excluding non-Europeans that may be exceptionally competent in addressing the issues before the Bank. "We welcome the candidatures from developing world for the position of the president of the World Bank. We reiterate that the heads of IMF and World Bank be selected through an open and merit-based process," said leaders from Brazil, Russia, India, China and South Africa in a joint 2012 statement.⁹

Second, critics also argue that the current system, where the Executive Board decides among candidates in secret closed door sessions potentially undermines the legitimacy of the eventual Managing Director. There is also concern that the World Bank "practice what it preaches" since the institution aims to be at the forefront of promoting best practices in global governance. "The convention that an American should run the bank while a European runs the International Monetary Fund, is exactly the sort of unmeritocratic cronyism that both the fund and the bank deplore in developing countries," said the Economist Magazine in 2007 during the selection process that nominated Mr. Zoellick.¹⁰ Collins Magalasi, of the African Forum and Network on Debt and Development, argued that "it's a World Bank, not a U.S. Bank. It needs the best candidate to get the job with support of wide Bank membership, not just the U.S."¹¹

In July 2000, two internal working groups (the World Bank Working Group to Review the Process for Selection of the President and the International Monetary Fund Working Group to Review the Process for Selection of the Managing Director) were created to discuss the selection procedure. A joint draft report of the Working Group was endorsed by the Executive Directors on April 26, 2001, but never formally implemented. The report declared, among other things, that transparency and accountability is critical to the selection process.¹²

More recently, the selection process was discussed during various G-20 summits. Language was included in the 2009 Pittsburgh Summit communiqué, stating that "[a]s part of a comprehensive reform package, we agree that the heads and senior leadership of all international institutions should be appointed through an open, transparent and merit-based process."¹³

Since 2008, the Development Committee of the IMF and the World Bank have called for an "open, merit-based and transparent selection of the World Bank President" and "with nominations open to all board members and transparent board consideration of all candidates." The issue was not addressed, however, in any of the three most recent G-20 meeting communiqués (Toronto, Seoul, and Cannes).¹⁴

The 2012 Selection Process

On March 23, 2012, President Obama nominated Dartmouth College President Jim Yong Kim as the U.S. nominee to succeed Robert Zoellick as World Bank president. Prior to Dartmouth, he held professorships in medicine and social medicine at Harvard Medical School and served as the director of the Francois-Xavier Bagnoud Center for Health and Human Rights. He is a co-founder of Partners In Health and a pioneer in the treatment of multi-drug-resistant tuberculosis and a former director of the World Health Organization's Department of HIV/AIDS.

Until the current succession, the U.S. candidate has never been formally challenged by other countries. Dr. Kim is currently competing against two other candidates for the position: Jose Antonio Ocampo, a Colombian national and professor at Columbia University; and Ngozi Okonjo-Iweala, a Nigerian national and finance minister of Nigeria.

Prior to his appointment at Columbia University, Dr. Ocampo served in a number of positions in the United Nations and the Government of Colombia, most notably as United Nations Under-Secretary General for Economic and Social Affairs. Dr. Okonjo-Iweala, prior to her July 2011 appointment as Nigerian Minister of Finance, held senior positions in the World Bank, including Managing Director from 2007-2011, and in the Nigerian Government where she had previously served as Minister of Finance (2003-2006) and Foreign Minister (2006).

Instead of implementing the 2001 report's recommendations the Executive Board adopted in 2011 a procedure that specified qualification criteria, established a nomination period, and provided for an interview process. Critics, point out that the agreed procedures remain vague and largely non-transparent. Most notably, development expertise is not included as a qualification and the decision will be taken not by public vote, but rather by consensus according to prior practice. Declaring the importance of an "open, transparent, and merit-based" process, yet continuing to perpetuate the status-quo, according to three former World Bank chief economists, is hypocritical, and "destroys the trust and spirit of collaboration needed to manage the profound problems facing the world."¹⁵

The three candidates are to have individual interviews with the World Bank's Executive Board of Directors. It is expected that a decision on the World Bank President will be reached prior to the 2012 spring IMF/World Bank meetings.

Footnotes

Politi, James, "Who's in the Running for the World Bank Presidency?" Financial Times, January 17, 2019.

1.	Miles Kahler, Leadership Selection in the Major Multilateral (Washington, DC: Institute for International Economics, 2001).
2.	Ibid.
3.	Jacob Katz Cogan, "Representation and Power in International Organization: The Operational Constitution and its Critics," The American Journal of International Law, 2009, vol. 103.
4.	The World Bank Group's Articles of Agreement and Bylaws are available at the Bank's website: http://www.worldbank.org.
5.	Richard Gerster, Proposals for Voting Reform Within the International Monetary Fund, Journal of World Trade, June 1993.
6.	22 U.S.C. §286 et seq.
7.	International Monetary Fund, Strengthening the International Monetary System: Taking Stock and Looking Ahead, Washington, DC, March 23, 2011.
8.	Ibid.
9.	BRICS Summit: Delhi Declaration. March 29, 2012
10.	The World Bank: Right Second Time, Economist, May 31, 2007.
11.	Press release, "Appointment of next World Bank head: Campaigners demand fair selection process," Eurodad, March 2012.
12.	International Monetary Fund and the World Bank, "The Bank Working Group to Review the Process for Selection of the President and the Fund Working Group to Review the Process for Selection of the Managing Director—Draft Joint Report," April 25, 2001.
13.	G20, Leaders' Statement: The Pittsburgh Summit, September 24-25, 2009.
14.	CRS Report R40977, The G-20 and International Economic Cooperation: Background and Implications for Congress, by [author name scrubbed].
15.	Francois Bourguignon, Nicholas Stern, and Joseph Stiglitz, "End the Monopoly: let's make it a real World Bank at last," Financial Times, March 21, 2012Since the creation of the International Monetary Fund and World Bank at the end of the second world war, an American has led the Bank and a European the IMF," noted Mark Sobel, U.S. chairman of the Official Monetary and Financial Institutions Forum (OMFIF), an independent think tank, and former U.S. representative at the IMF.28 "It is time for a change."29 According to Nancy Birdsall, senior fellow and founding president of the Center for Global Development, "the logic of an American president to ensure sustained U.S. support for the World Bank is no longer as clear as it has been."30 According to Birdsall, and others, the Trump Administration's "America First" rhetoric may make it harder for the United States to coalesce support for the U.S. candidate.31 Others argue that these concerns are overblown and that any serious effort to block the U.S. nominee would backfire. David Dollar, a former U.S. Treasury and senior World Bank official, says that, "it's a very complicated game. My instinct is that there is a very strong likelihood that the U.S. nominee will be approved. The world has an interest in the United States staying engaged with the World Bank."32 Devesh Kapur, a professor at Paul H. Nitze School of Advanced International Studies at Johns Hopkins University, puts it more bluntly, saying "powerful nations' relationships with the United States matter much more than who heads the World Bank."33 Following Kim's announcement of his resignation, the Bank's Executive Board met on January 9, 2019, and issued a formal statement on the selection process.34 The nomination period for the next president ends on March 14, after which the Executive Board is to decide on a shortlist of three candidates. Following interviews, the Executive Board aims to select the next president before the spring meetings in April 2019. On February 6, President Trump nominated David Malpass, Treasury's Under Secretary for International Affairs, to be the next World Bank president.35 Reportedly, Ivanka Trump, President Trump's oldest daughter and senior advisor, played a role in selecting the U.S. nominee.36 In 2017, Ms. Trump helped start a World Bank-administered fund, the Women Entrepreneurs Finance Initiative, which aims to generate $1.6 billion in capital for female entrepreneurs. The White House, according to reports, also considered Indra Nooyi, the former chief executive officer of PepsiCo;37 Ray Washburne, President and Chief Executive of the Overseas Private Investment Corporation; Mark Green, U.S. Agency for International Development Administrator; and Robert Kimmitt, Deputy Treasury Secretary under George W. Bush.38 Author Contact Information Martin A. Weiss, Specialist in International Trade and Finance ([email address scrubbed], [phone number scrubbed]) Footnotes
1.	In addition to the World Bank, the United States is a member of four regional development banks: the African Development Bank (AfDB); the Asian Development Bank (AsDB); the European Bank for Reconstruction and Development (EBRD); and the Inter-American Development Bank (IDB).
2.	For additional background, see CRS Report R41170, Multilateral Development Banks: Overview and Issues for Congress, by Rebecca M. Nelson, CRS Report RS20792, Multilateral Development Banks: U.S. Contributions FY2000-FY2019, by Rebecca M. Nelson, and CRS Report R41537, Multilateral Development Banks: How the United States Makes and Implements Policy, by Rebecca M. Nelson and Martin A. Weiss.
3.	Further background information is available at http://ida.worldbank.org/about/borrowing-countries.
4.	The World Bank's fiscal year 2018 covers the period July 1, 2017, to June 30, 2018.
5.	World Bank 2018 Annual Report and Financial Statements. Of the U.S. contribution, a partial amount, $2.9 billion, is paid in. This amount has been fully authorized and appropriated by Congress in several appropriations measures over the years. The balance of the U.S. subscription, $43.5 billion in callable capital, has been authorized by Congress but not appropriated.
6.	World Bank 2018 Annual Report and Financial Statements.
7.	Picker, Leslie, "World Bank Picks Jim Yong Kim for Second Term as President," New York Times, September 27, 2016.
8.	CRS Report RS20792, Multilateral Development Banks: U.S. Contributions FY2000-FY2019, by Rebecca M. Nelson.
9.	CRS In Focus IF10895, 2018 World Bank Capital Increase Proposal, by Martin A. Weiss.
10.	Department of the Treasury, "Development Committee Statement of Secretary Mnuchin - April 2018," Washington, DC, April 21, 2018.
11.	Miles Kahler, Leadership Selection in the Major Multilateral (Washington, DC: Institute for International Economics, 2001).
12.	Ibid.
13.	Jacob Katz Cogan, "Representation and Power in International Organization: The Operational Constitution and its Critics," The American Journal of International Law, 2009, vol. 103.
14.	Morris, Scott and Ben Leo, African Development Bank Elects New President, Raises Bar for Transparency, Center for Global Development, May 29, 2015, https://www.cgdev.org/blog/african-development-bank-elects-new-president-raises-bar-transparency.
15.	The World Bank, World Bank's Executive Directors Select Dr. Jim Yong Kim 12th President of the World Bank Group, April 16, 2012. http://www.worldbank.org/en/news/press-release/2012/04/16/world-bank-executive-directors-select-dr-jim-yong-kim-12th-president-of-the-world-bank-group.
16.	The World Bank Group's Articles of Agreement and Bylaws are available at the Bank's website: http://www.worldbank.org/en/about/articles-of-agreement.
17.	International Monetary Fund and the World Bank, "The Bank Working Group to Review the Process for Selection of the President and the Fund Working Group to Review the Process for Selection of the Managing Director—Draft Joint Report," April 25, 2001.
18.	Francois Bourguignon, Nicholas Stern, and Joseph Stiglitz, "End the Monopoly: let's make it a real World Bank at last," Financial Times, March 21, 2012.
19.	A full list of the World Bank's voting constituencies and the voting power of individual member states is available at http://pubdocs.worldbank.org/en/329671541106474760/IBRDEDsVotingTable.pdf.
20.	Richard Gerster, Proposals for Voting Reform Within the International Monetary Fund, Journal of World Trade, June 1993.
21.	22 U.S.C. §286 et seq.
22.	For more information on Mr. Bethel, see: http://www.worldbank.org/en/about/people/e/erik-bethel.
23.	Gertz, Geoffrey, "Will Donald Trump Get to Pick the Next President of the World Bank? Maybe Not." Washington Post, January 10.
24.	International Monetary Fund, Strengthening the International Monetary System: Taking Stock and Looking Ahead, Washington, DC, March 23, 2011.
25.	There are many recent books and reports documenting the shifts in global economic power. A notable example is: The World Bank, Global Development Horizons 2011, Multipolarity: The New Global Economy, Washington, DC, 2011, http://siteresources.worldbank.org/INTGDH/Resources/GDH_CompleteReport2011.pdf. See also, Rachman, Gideon, Asia's Rise and America's Decline From Obama to Trump and Beyond (New York, NY: Other Press, 2017); Economy, Elizabeth and Levi, Michael, By All Means Necessary: How China's Resource Quest is Changing the World (Oxford, UK: Oxford University Press, 2014; and Wright, Thomas, All Measures Short of War: The Contest for the Twenty-First Century and the Future of American Power (New Haven, CT: Yale University Press, 2017).
26.	CRS In Focus IF10154, Asian Infrastructure Investment Bank, by Martin A. Weiss; CRS Report R44754, Asian Infrastructure Investment Bank (AIIB), by Martin A. Weiss.
27.	IRC Taskforce on IMF Issues, Strengthening the Global Financial Safety Net: Moving Relations between the IMF and Regional Financing Arrangements Forward, European Central Bank, ECB Occasional Paper Series No, 207, March 2018.
28.	Sobel, Mark, Non-American should lead World Bank: Time for a Change at Bretton Woods bodies, Official Monetary and Financial Institutions Forum, January 9, 2019, https://www.omfif.org/analysis/commentary/2019/january/non-american-should-lead-world-bank/.
29.	Ibid.
30.	Birdsall, Nancy, "The World Bank Needs to Join the 21st Century," Foreign Policy, January 16, 2019, pp. https://foreignpolicy.com/2019/01/16/the-world-bank-needs-to-join-the-21st-century/.
31.	See also, Gallagher, Kevin P., "Kim's Resignation from World Bank Leaves Multilateralism at Stake," Financial Times, January 8, 2019.
32.	Quoted in, Politi, James and Sam Fleming, "Why Jim Yong Kim's move has shaken up the World Bank," Financial Times, January 11, 2019.
33.	Kapur, Devesh, "The World Bank is in a Leadership Crisis. But That's Nothing New," The Globe and Mail, January 18, 2019.
34.	The World Bank, "Selection of the President of the World Bank Group," press release, January 10, 2019, https://www.worldbank.org/en/news/press-release/2019/01/10/selection-of-the-president-of-the-world-bank-group.
35.	Whalen, Jeanne and David Lynch, "Trump nominates Wall Street veteran David Malpass to head World Bank," The Washington Post, February 6, 2019.
36.	Karni, Annie, "Ivanka Trump to Help Choose New World Bank President," The New York Times, January 4, 2019.
37.	Karni, Annie, "White House Considering Indra Nooyi to Head World Bank," The New York Times, January 15, 2019.
38.