World Bank, IMF Pay Hikes Get Flak

Pay hikes in International Monetary Fund and World Bank drew criticisms from the U.S. and Europe. Photo by:

Pay hikes for International Monetary Fund and World Bank staff approved in a recent board meeting have drawn criticisms from U.S. and European representatives. The pay increases appeared “out of touch” as they come at a time when several countries are implementing various austerity measures, a U.K. official noted.

The U.S., U.K. and several other European countries have abstained in votes that approved above-inflation raises of 4.9 percent on salaries of IMF staff and 3.7 percent for World Bank staff, The Washington Post says. World Bank pay raises were approved June 23, while IMF raises were approved in April.

“We greatly value the hard work and expertise of bank staff,” U.K. Department for International Development spokesman Rob Kelly said. But “when governments worldwide are cutting public spending, increasing taxes, and reducing or freezing public-sector pay, to award an above-inflation pay rise risks making the bank appear out of touch.” 

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    Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.