![]() ![]() This system of overlapping responsibilities was referred to as “co-management” in the 2009 Zedillo Report, which examined the Bank’s governance at President’s Zoellick request. It approves policies, strategy documents, and operational instruments makes the most relevant financial decisions approves the administrative budget and decides on individual lending operations. The Board of Executive Directors meets in “continuous session”, which was taken to mean a permanent residential body. The President's internal management of the bank is constrained less by formal restrictions than by bureaucratic autonomy and inertia. This extensive power over the Bank bureaucracy has become more important as the organization has expanded greatly. The President is given discretionary power over administrative, operational, and organizational matters, “under the direction” of the Board of Directors. They were conceived as the functions of the secretary of a small international organization where all relevant decisions would be made by the member countries. Formal authority is divided with the Board of DirectorsĬompared to those of the CEO of a large company, the President's powers under the Articles of Agreement are quite limited. This unwritten part of the actual power of the job makes the background and skills of the president, critical for effectiveness. Out of the three, the informal and contextual elements are crucial to grasping the true power of the World Bank President. ![]() ![]() Power vested in the World Bank President’s position results from three sources: (i) first, formal authority as outlined in the Articles of Agreement (ii) second, informal power, which is the position's capacity for influence beyond statutory authority, derived from internal and external recognition and, (iii) third, the context in which the position is taken could either broaden or tighten his authority, depending on external challenges and shareholders’ appetite for change. The first step in that direction is having a thorough understanding of the true power of the office. Despite coming from a successful corporate background, Ajay Banga will have to adapt his theory of change to meet an institutional dynamic that is significantly different from that of a for-profit organization. Evidence suggests that leaders primarily draw their theories of change from their own expertise in exercising power. He requires a theory of change, the sequence of actions that will allow him to arrive where he wants to go. Robert MacNamara is still cited as the president who oversaw the most significant transformation of the Bank, but that was accomplished more than four decades ago, during the Bank's largest expansion ever.Ījay Banga needs to decide what he wants to do as well as how to do it. However, compared to high expectations, the track record of recent World Bank Presidents has been frequently disappointing. Most suggestions assume that the World Bank President's office is a very powerful lever that can significantly change the organization and have an impact in the developing world. Several blogs and papers have been written offering advice on what his priorities should be. Ajay Banga has begun his mandate as the newly elected President of the World Bank. ![]()
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