I read the article "Yunus and World Bank presidency" written by
Sadiq Ahmed (The Daily Star, February 26), a former senior staff member
of the World Bank, with great interest and appreciation. I fully endorse his
views supporting Professor Yunus as the next World Bank (WB) president.
Although the position of president of World Bank is open to nationals of all
its 187 member states, it has been the practice that the head of the Bank would
be an American citizenprobably because America is the largest contributor
to the fund.
The WB, originally conceived in 1944 as an international Bank of
reconstruction and development to salvage war-ravaged Europe
is, however, now engaged in offering loans and grants for economic development
of developing countries. But ironically, all its past eleven presidents, with
few exceptions, came from the defense establishment or from elite business and
corporate establishments having little concern and care for the poor,
disadvantaged and marginalised underlings in society.
The Bank foisted on the developing countries what it described as
"structural adjustment" and "Washington consensus" as aid
conditionality by prescribing privatisation and deregulation, free market
economy, devaluation of currency against dollar, removal of subsidy in
agriculture and lifting of import restrictions, etc. This adversely impacted on
social sectors including education, health and other social care, leading to
depressed prices of exported primary commodities, price rise of food and
energy, pillage of land and environment, and displacement and dispossession of
the huge poor population.
The prescription apparently stressed upon GDP growth with least regard for
social equity, and created a yawning gap between the rich and poor. Its latest
poverty reduction strategy has made little difference. The result is widespread
frustration, despair and disenchantment with the performance of the WB in the
developing countries.
What is urgently needed is a thorough review for a structural reform of the
selection process of the WB president. The traditional practice of selection of
an American is an anachronism. It is time it was abandoned in favour of a more
democratic practice.
In October 2008, the World Bank Committee (ministerial executive board)
endorsed a merit-based and transparent selection process with nomination open
to all member countries and transparent consideration of all candidates.
China,
the second largest economy of the world, said: "The next WB president
should be selected on merit." President Obama has said that it would open
the process to competition. The G 20 made the same commitment in June 2010,
endorsing open, transparent, merit based selection of heads of international financial
institutions. In December 2011, the UN General Assembly adopted a resolution
calling for reform of the governing structure of the WB with due regard for
regional and geographical representation, including representation from the
developing countries.
The executive board of the WB recently reconfirmed the importance of merit
based and transparent process in the selection of the next president. He should
have proven track record of leadership, experience in managing large
organisations with international exposure, ability to articulate a clear vision
of the Bank's mission, and effective and diplomatic communication skills.
The ongoing financial crisis in America and the spiraling debt
burden in Europe, particularly in Greece, Italy, Spain and Iceland, is raising
the alarming specter of rising unemployment, collapse of banks, foreclosures of
homes for default on loans, and folding of business and factories despite
severe austerity measures. This shows that unfettered authoritarian capitalist
economy based on Keynesian doctrine of laissez fare, liberalisation and free
market as means of economic growth has become bankrupt, and that new economic
vision and thinking are urgently needed.
This is what was precisely echoed recently by Klaus Schwab, the founder and
organiser of world economic forum in Davos, when he said: "Capitalism in
its present form has no place in the world. We have failed to learn the lessons
of financial crisis of 2009. A global transformation needs to take place
urgently and it must begin by restoring a form of social responsibility."
Who else can be better fitted to bring about this new economic architecture
other than Nobel laureate Professor Yunus, universally known, loved and
honoured as a banker of the poor who practices microcredit and promotes social
business to end poverty and bring about an egalitarian just society? Only he
holds the secret to the transformational economic model referred to. He is the
ultimate and natural choice as the next president of World Bank, a panacea to
overcome the debilitating economic malaise the world is faced with today
About the required "effective diplomatic and communication
skills," Professor Yunus is an astute diplomat and skilled communicator.
He is received warmly and honoured by monarchs, heads of states and governments
and university faculties round the world.
Professor Yunus is a doer with a vision. His performance and achievements
are unique and outstanding, legendary and iconic. He has impeccable credentials
for the job in the WB. Trained in American universities in theories of
capitalist economy and practicing microcredit for the poor, Professor Yunus
provides a rare blend of macro and micro economy expertise and could be the
perfect choice to lift the shadow of the overwhelming gloom and doom of a
crushing global financial crisis.
Prime Minister Hasina has proposed the name of Professor Yunus as new WB
president in course of her meeting with a visiting EU delegation recently. Now
she may formally write in right earnest to the executive Board of World Bank
requesting for his nomination by an executive director for consideration as new
World Bank president. The last date of nomination is March 23. We expect that
Hillary Clinton will vindicate her unwavering faith in Professor Yunus by
extending her active support to select him by consensus for the top job at the
WB.
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