17 September 2009
The full committee hearing addressed the 2009 World Bank Disclosure Policy Review and the role of civil society participation in achieving successful development outcomes. BIC board member, Richard Bissell testified.
On September 10th, BIC board member Dr. Richard Bissell addressed the House Committee on Financial Services regarding transparency and access to information at the World Bank. He was joined by several experts including professor and Nobel Prize-winning economist Joseph Stiglitz.
The hearing reviewed the Bank's proposed information disclosure policy and examined how the lack of direct democratic accountability at multilateral institutions such as the World Bank makes it necessary that other control mechanisms - such as increased and timely access to Bank documents, greater parliamentary oversight, and broad public debate about the Bank's development policies - be put in place to ensure that broad, global international interests are promoted. The hearing also examined the central role of transparency in any effort to successfully reform the Bank, both with respect to improvements in its internal governance structure as well as its poverty reduction programs on the ground.
In his opening remarks, Chairman Barney Frank (D-MA) underscored his willingness to use the power of the purse when the Bank requests its general capital increase in order to encourage the adoption of reforms for greater transparency and accountability at the financial institution. He highlighted the importance of access to information, stating that “lacking the information that you get from those most directly affected, you make bad decisions...because they will not take into account the legitimate concerns of those actually affected, but secondly, because they have information that will benefit the process.” He reminded the committee that "in the absense of openness, corruption flourishes."
Representative Gary Miller (R-CA) provided remarks, adding that he is "pleased to learn of the Bank’s plan to adopt a mechanism for declassification, establish greater openness of the Board’s deliberations and ensure that the greater transparency results in greater partnership among interested parties." He stressed the importance of implementation so "that these reforms not merely exist in a document but become embodied and embedded in the culture of important institutions." He pointed out that "the desire to be more open, to share information, to see others as partners and not adversaries is a powerful tool.”
Dr. Bissell congratulated the Bank for significant improvements in information disclosure since the 1980s but noted that "despite these welcome shifts, the Bank’s current 'Policy on Disclosure of Information' continues to limit public access." In his concluding remarks, he questioned whether the World Bank's opacity has contributed to the decline in support for the Bank in recent years and noted that "the Bank has responded grudgingly and only partially to build public understanding among its stakeholders as to why and when it acts as it does in investing billions of the public’s dollars in projects to alleviate poverty and improve the conditions of mankind." He reaffirmed support and an interest to work with the Bank as they continue to strive for greater transparency and accountability.
Committee hearing details
Expert testimony from (links to each individual testimony below):
- Professor Joseph E. Stiglitz, Columbia University, recipient of the John Bates Clark Medal and the Nobel Memorial Prize in Economic Sciences, former Senior Vice President and Chief Economist of the World Bank
- Professor Alnoor Ebrahim, Harvard Business School, specialist on governance and accountability at the international financial institutions
- Dr. Richard E. Bissell, former World Bank and Asian Development Bank inspection panel member, Board member of the Bank Information Center and Executive Director of the Policy and Global Affairs Division at the National Research Council
- Ms. Vijaya Ramachandran, Senior Fellow, Center for Global Development
- Mr. Thomas S. Blanton, Director, National Security Archive at George Washington University
For webcast of the hearing, please see the House Committee on Financial Services website.
press coverage
WORLD BANK: Renewable investments surge, but enviros continue to question bank's energy portfolio, by Saqib Rahim, September 11, 2009 (Climate Wire website)
US Rep Frank Threatens To Withhold Money From World Bank, by Jessica Holzer, September 10, 2009 (Dow Jones Newswires)
see also
BIC webpage on the World Bank Transparency Review
Accountability and Transparency Key to World Bank Disclosure Policy, Ramachandran States in Congressional Testimony, September 14, 2009 (Center for Global Development website)
POMED Notes: "The World Bank's Disclosure Policy Review," September 11, 2009 (Project on Middle East Democracy website)