Choosing the World Bank President: Time to Change the “American Reserved Seat”

Choosing the next president of the World Bank is a hot issue like never before. Ever since its inception in 1945, the post has been held solely by an American, but this time two from outside the U.S. are in the running in the first ever genuine race.

Headquartered in Washington, the World Bank is an international organization to assist poorer countries in their economic development through financial means. There are 187 countries, including Japan, that are members of this alliance. Also, all 11 presidents have been American. The custom has continued, where the top of the World Bank has always been American and the top position in another international financial institution in Washington, the International Monetary Fund, has always been from Europe. This is due to the overwhelming influence America and Europe have because of the voting power they have based on the proportion of their financial contributions.

However, there are strengthening voices among developing as well as advanced countries saying that it is strange to have these “reserved seats” in a world economy, where developing and emerging countries have stronger and stronger voices. That seems only natural. The time has come to pick someone in a transparent way based on their personal character.

The American administration has picked Jim Yong Kim, a Korean-American medical professor. Working as the president of Dartmouth College, he has experience in unifying AIDS strategic plans at the World Health Organization.

Until now, the president of the World Bank has been those who stand out in government administration or are born into the financial world, but by choosing a medical doctor of Asian descent, President Obama might be trying to show a new image of the president.

However, the other two candidates are economic specialists and have experience in financial affairs. Mr. Kim’s ability is unknown in development policies and political negotiations. It seems that there is also a voice which doubts the very nature of the president of the World Bank because there are indications that are also negative to economic growth caused by their work.

On the side of support centered in the developing countries, there is the Minister of Finance from Nigeria, Ngozi Okonjo-Iweala. She has worked as a managing director under the president of the World Bank and has negotiated with developed countries concerning her own country’s debt reduction.

With such a strong candidate, we have to question whether this is the tipping point to do away with the idea that the president of the World Bank is automatically an American. In making their selection at the end of this month, we wish for the board of directors to carefully consider the candidates’ actual achievements and how they intend to lead this organization.

The problem there, is the attitude of the Japanese government, that has the second voting right after the United States. After one day of speaking with Mr. Kim, Japanese Finance Minister, Jun Azumi, announced his support for Mr. Kim within the first week of his candidacy. He spoke of Mr. Kim’s being of Korean descent and his achievements in tackling the AIDS strategy, but it lacks persuasive power. It is inevitable that this is regarded as an act of safely following America. The world observes human behavior. The Japanese government has the duty and responsibility to explain on what merits they are building their support for Mr. Kim.