The World Bank is something of an enigma, as Terrence Halliday -- an expert on law and globalization and a consultant to the bank -- writes. His journal-length effort to get to the bottom of what the World Bank is really about ranges through the bank's history, leadership, portfolio, and -- most intriguingly -- asks who its true owners are, before concluding that "it is vitally needed despite its flaws."
In the course of Halliday's piece, he reviews two alternative books critiquing the bank, one from a social activism perspective, the other a biography of James Wolfensohn's tenure as president. This makes for a rangy argument that covers a lot of ground but turns up much interesting material and argument.
For instance, readers not accustomed to the ins and outs of the World Bank might wonder, amongst all the stories of Paul Wolfowitz's recent ouster, what a snapshot of the bank's activities looks like; how does the bank translate its stated mission: "a future without poverty, disease, and illiteracy," into policy? Halliday runs through some of this:
A scan of the Bank's reports and its programs reveals an extraordinarily eclectic range of activity in every corner of the globe: getting girls into school in Egypt and poor children to school in the Kyrgyz Republic; combating tb in Africa and malaria in Eritrea; managing forests in Southeast Asia and fisheries along rural coastlines; rushing emergency teams to Indonesia, the Maldives and Sri Lanka after the tsunami of 2004 and rebuilding strife-torn Central Africa; killing agricultural pests in Central Africa and developing the garment industry in Cambodia; pushing for court reform in the Philippines and building the power grid in the Dominican Republic; creating housing reform in Mexico and road-building in Poland.
Not least, the Bank now combats the money laundering that could fuel terrorism. It demands transparency in governments and offers transparency for itself. Millions of dollars are committed to reducing government corruption and to building civil society groups. The World Bank Institute trains aid workers. The Bank teams up not only with governments but with the World Wildlife Fund and the Scout Movement for children, with Conservation International and the UN's Programme on HIV/AIDS.
At least, this is how the bank sees itself. But if this is the case, why the small industry of protest and outrage at the way the World Bank operates? Halliday summarizes the position of many social activists: "The Bank answers to the institutions of global finance, to the interests of small consulting firms, major contractors, cash-starved political élites, international bankers, Wall Street, and its largest stockholders -- the world's richest nations. Look not to the Bank for sympathy or understanding for the poor, the voiceless, the excluded and marginal. Look through the Bank's rhetoric to its actions. Weigh them against its predations -- and that will constitute the measure of the Bank's commitment to poverty, social justice, and democracy."
But Halliday points to Sebastian Mallaby's book, "The World's Banker," for a more even-handed critique of the bank. Even when its leadership is willing to truly dedicate the bank's resources to fighting poverty, "the Bank itself is riven with contradictions that would subvert the best-intentioned organization. On any project at any moment, the Bank can find itself caught in a vise of contradictory expectations."
Shareholders, clients and activists are only the most obvious "mutually colliding constituencies." Writes Halliday, "If this three-way squeeze were not enough, the Bank itself is a tribal society where those at headquarters clash with those in the field, where long-term technocrats resent the transient politicians brought in to lead them, where the prevailing ideology of a certain economics clashes with anthropologists and other social sciences."
What, in the midst of all this confusion, can civil society do to clean up the bank's operations and keep it true to its mission? Far from a lost cause, this, says Halliday, is exactly where civil society should be. "...It behooves us to constantly subject this enormously powerful institution to... searching critique, to listen to discordant voices, to confront directly the contrasting visions sketched by Mallaby: a World Bank that partners primarily with Northern NGOs and governments, versus a Bank that keeps its mission focused on "the least of these," the poor countries it is charged to help. Let the Bank continue with its experimentation, but demand that it listen to alternatives, engage in self-critique, and most of all, show evidence that indeed it is creating a world "free of poverty."