The Wall Street Journal-20080126-Looking After Themselves
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Looking After Themselves
Regarding your recent editorials concerning the World Bank and its modus operandi, including "World Bank Purge" on Jan. 18, I would like to add my own observations having been employed there some years ago coming from the private sector. The bureaucracy and hypocrisy were formidable. The generous perks and ennui were and apparently continue to be a perfect setting for third-rate economists and financial types, not only from the major donor countries but also from the so-called developing economies.
Political connections and not talent prevailed with a "don't rock the boat" mentality pervasive. There was continuous pressure to get the loan numbers up even if the recipient country was not entirely receptive. This was particularly true of the so-called "General Purpose" loans which were not directed to any one specific project. When I was there the bank was trying to determine how approximately $2 billion in such loans made to the Philippines were ultimately disbursed during the Marcos years. Even Imelda Marcos could not have spent all of that money on shoes. In any case, do we really continue to need a World Bank? If a project has merit, shouldn't the private sector be able to provide the funding and better monitor the timely repayment? I think so.
F. John Paul "Scotty" Andrews
East Carolina University
Greenville, N.C.
