Jim Yong Kim, the World Bank's president, is attempting to revitalize the institution with his controversial support of Wall Street. The World Bank, which was once a powerhouse of global finance, is looking for relevance. Kim's unique solution: embracing Wall Street. The model that the World Bank has been following for decades is under strain as some 1.3 billion people still live in poverty, the bank's war chest is depleting by the funds going into developing countries through financial markets. Additionally, the World Bank's biggest benefactor and largest shareholder, the United States, has become it's most vigorous critic. In order to revitalize the World Bank, Kim's mission is to change how the bank operates.
Rather then relying only on contributions from reluctant donor governments, Kim is pushing towards private investors. Sovereign wealth funds, private equity firms and insurance companies. His pitch is that the bank can reap rich returns by putting their money to work alongside the World Bank. Kim's proclaimed dream is to persuade the private sector to help the bank achieve its goal of ending extreme poverty by 2030.
https://www.nytimes.com/2018/01/25/business/world-bank-jim-yong-kim.html?rref=collection%2Fsectioncollection%2Fbusiness
1 comment:
I don't think the World Bank's pivot to Wall Street is the best idea. An increased focus on the American stock market while ignoring the important issue of global poverty is detrimental to the World Bank's purpose, in my opinion. The greater reliance on private investors, as opposed to national governments, is not conducive to transparency and unbiased investment. While World Bank president Jim Yong Kim's goal of eliminating extreme poverty by 2030 is very noble, I don't believe it is very realistic.
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