WB directors test Zoellick

FE Team | Published: July 16, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Krishna Guha in Washington and Richard McGregor in Beijing
FT Syndication Service
Nine of the World Bank's 24 executive directors have written to its new president, Robert Zoellick, challenging its role in publishing controversial indicators that attempt to measure the quality of governance in its member countries.
The letter, signed by directors representing China, Russia, Mexico, Argentina and other predominantly developing countries, presents Mr Zoellick with the first serious test of his World Bank presidency less than two weeks after he succeeded PaulWolfowitz.
It follows the publication earlier of the annual Worldwide Governance Indicators report, which infuriated a number of governments. The report is not an official bank document but is produced by bank researchers and is highly influential in development circles.
Argentina complained about the finding that the quality of its governance had declined between 1998 and 2006, while China was deeply unhappy about its low rating on "voice and accountability" one of six metrics evaluated by bank researchers.
People familiar with the letter said its tone was constructive and not intended to set up a confrontation with Mr Zoellick. The nine directors did not challenge the quality of the work done by the bank researchers.
But they said the bank should reconsider whether it should be in the business of producing this kind of analysis at all.
Some bank officials see the letter as the beginning of an attempt by developing countries, in particular those with authoritarian governments, to capitalise on the ousting of Mr Wolfowitz to roll back the bank's governance agenda. That agenda preceded Mr Wolfowitz but was championed by him.
Other bank officials play down these fears, noting that board concerns about the governance indicators are not new. In January, 10 directors wrote a letter to Mr Wolfowitz objecting to the inclusion of the indicators in the bank's official Development Indicators report.