21 July 2007
Meanwhile, divisions on the Bank's Board of Directors over the report's findings could present Zoellick with his first test of leadership.
A new report indicates that governance in Africa has taken a positive turn, despite the spiraling situation in Zimbabwe, persistent conflict in Sudan, and escalating violence in Somalia. A new governance report from the World Bank Institute ranks Ghana as the most improved country in Africa between 1998 and 2006.
Meanwhile, strong reactions to the study reveal a divide at the World Bank which could present Robert Zoellick with the first major test of his leadership. As reported in the Financial Times, nine of the Bank’s 24 executive directors wrote a letter to the Bank’s new president, questioning whether the Bank’s research institute should issue such governance reports on its member countries at all.
The Financial Times notes that the EDs for China, Argentina, Mexico and Russia were among those challenging the report, which measured countries’ performance in various areas such as voice and accountability, government efficiency, and corruption. As the report is not an official Bank publication, it does not bear directly on Bank lending. However, there is an ongoing debate about whether the Bank’s financing decisions should in fact be more closely tied to evaluations of borrowing country governance – a highly political, and politicized, proposition. Some critics contend that the Bank is in no position to champion a “good governance” and anti-corruption agenda, in light of recent scandals at the institution and given the continued ”democratic deficit” in the Bank’s own governing body.
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