World Bank President Jim Kim wants his institution to get out of the business of financing projects that private sector investors could do on their own, and into the business of rewarding staff who prepare commercially viable projects.
Speaking Thursday at a Spring Meetings event on “creating markets” — which alludes to the bank’s recent emphasis on driving investment opportunities to low-income places, instead of waiting for investment opportunities to materialize — Kim described the internal culture change this would require of the bank.
Kim said, “the one thing that will convince me that we’ve changed” is a shift in the culture of rewards and incentives around project preparation at the World Bank.
“Inside the World Bank now, if you do so well that it begins to look commercially viable, the incentives are aligned so that you quickly get it through the board and get your credit for having got that loan out the door,” Kim said.
“What we’re looking for is for us to be able to say, my goodness, if you’ve taken an idea and turned it into a bankable project [that was not previously] commercially viable, you get all the points that you could possibly get, we celebrate your achievement, and you’re going to be in line for a promotion,” he said.
Kim added: “It doesn’t work like that right now, but we absolutely know that that’s what we have to do if we’re going to have a chance of meeting the Sustainable Development Goals … Unless we’re able to change our own culture and move in the direction of facilitating much more investment in developing countries, we won’t get there.”
Update April 21, 2017: A World Bank spokesperson contacted Devex to clarify President Kim's statement. Kim intended to say, "a bankable project that was not previously commercially viable." The article has been changed to reflect this clarification.
Michael Igoe is a senior correspondent for Devex. Based in Washington, D.C., he covers U.S. foreign aid and emerging trends in international development and humanitarian policy. Michael draws on his experience as both a journalist and international development practitioner in Central Asia to develop stories from an insider's perspective.
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