World Bank Board Seat Can Double a Country’s Normal Aid
A new working paper from Harvard illustrates the advantage of being on the Executive Board of the World Bank: on average, a developing country serving on the board can expect a doubling of its normal funding levels.
Key findings:
- A majority of World Bank member countries never or rarely get a seat at the table.
- The Executive Board is used as a platform to channel more or greater Bank loans and grants to the home countries of the directors. Countries receive a large increase in Bank loans and grants during years when they have a seat on the board.
- On average, a developing country serving on the board can expect a doubling of its normal funding levels.
In absolute terms, board membership is rewarded with a nearly $60 million bonus, on average.
Finding that countries can take advantage of their position of power has implications for other international appropriations committees like the European Union, International Monetary Fund, regional development banks, and United Nations agencies, the paper concludes.
*Corporate Misgovernance at the World Bank
by Ashwin Kaja and Eric Werker
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