Give the World Bank presidency to Jeffrey Sachs, says Mehdi Hasan

Mr Obama: Don't disappoint.

If it's going to be an American again, he's the best man for the job.

From the BBC:

Candidates to be the next president of the World Bank are being announced as the deadline for nominees approaches.

Three African countries have endorsed the nomination of Nigerian finance minister Ngozi Okonjo-Iweala.

If only. Okonjo-Iweala doesn't stand a chance. Nor does the former Colombian finance minister Jose Antonio Ocampo, who is also said to be considering throwing his hat in the ring before the deadline closes this evening.

The whole thing is a stitch-up. When it comes to the IMF and the World Bank, the "international community" is an irrelevance. The "tradition" is for an American to head the World Bank and a European - currently France's Christine Lagarde - to run the IMF. The "Global South", representing 157 of a total of 184 recognized states in the world, as well as the vast majority of the world's inhabitants, and on the receiving end of most World Bank policies, doesn't get a look in. It's shameful - and undemocratic.

But that's the way it is. The next World Bank president will be an American, not a Nigerian or a Colombian. The question is: which American?

Larry Summer's name is the one most often mentioned in the press. The heart sinks. He would be a bad, bad choice. Despite being one of the world's most famous and "respected" economists, Summers, former chief economic adviser to President Obama, is timid and over-cautious (see Ron Suskind's Confidence Men), compromised by his close ties to Wall Street and has never fully accounted for his dismal failure of judgement on financial deregulation during the Clinton years.

The Huff Po's Mark Gongloff puts it best:

What exactly does Larry Summers have to do to stop being offered important jobs? Hold up a liquor store? Kill a guy?

That is the question many are asking, or at least should be asking, about Summers' reported candidacy to be the next president of the World Bank.

. . . Even if you give Summers a pass on his bad advice to the president, there are plenty of other reasons to oppose his nomination to the World Bank. His interpersonal skills fall somewhere on the scale between honey badger and Yosemite Sam with a urinary tract infection. He has a paleolithic attitude about women. As a World Bank economist, he once signed off on a memo that suggested, apparently in a Swiftian way, dumping toxic waste in poor countries.

Then there's the head of Pepsi, Indra Nooyi, who is also said to be in the running. Despite there being a certain appeal to appointing a woman who was born in India to run the World Bank, the simple fact of the matter is that putting a $14-million-per-year corporate boss, with no background or record in development, in charge of the institution tasked with fighting global poverty would continue to send all the wrong signals. (Outgoing Bank chief Robert Zoellick is a former managing director of Goldman Sachs!)

My preferred US candidate would be economist Jeffrey Sachs, director of the Earth Institute at Columbia University, author of The End of Poverty and former director of the UN Millennium Project and special advisor, between 2002 and 2006, to then UN secretary-general Kofi Annan on the Millennium Development Goals. Sachs has all the right qualifications - and he wants the job too!

As the BBC reported earlier this month:

[P]overty campaigner and development economist Prof Jeffrey Sachs is making a very public bid for the nomination.

No-one has ever done this before, and it has created huge media and public interest.

It is not just that Prof Sachs wants the job, he is also openly critical of the outgoing Mr Zoellick and how the bank has been run.

Sitting in his Manhattan townhouse, Bolivian and African art on the walls, Prof Sachs explains that the job of leading the World Bank should be given to a development expert.

"The inside process has produced 11 out of 11 politically-orientated appointments," he says.

"Not one of them has been a development professional... It has been seven bankers, three defence or military officials, and one congressman."

Prof Sachs says that after 27 years dedicated to fighting hunger, poverty and disease in developing countries, he is uniquely qualified to run the World Bank.

As head of the Earth Institute at prestigious Columbia University, and as an adviser to the UN and numerous governments, he has "walked the villages of the world".

I've had the privilege of meeting Sachs. He is a brilliant, passionate and decent human being; an optimist who believes extreme poverty can be eliminated on a global scale. He is eloquent and combative, and not afraid of speaking his mind or standing up to governments - including his own. Best of all, he isn't a politician or a banker - he is a genuine expert in development economics.

Yes, his association with "shock therapy" in Russia two decades go will continue to haunt and taint him (though Sachs has offered a personal defence/rebuttal here) and I admit to losing a little respect for him more recently when he came out in favour of George Osborne's deficit reduction plan. But we can't make the perfect the enemy of the good. Plus, Sachs's contribution to the New Statesman's "Plan B" special issue on the economy, last October, shows he is no simple-minded, right-wing austerity junkie.

He wrote:

It was and is important to get deficits under control. But in this deficit-cutting process, both the US and the UK need greater investment as well, notably in human capital, infrastructure and science and technology.

As these are key, I would urge budgetary adjustment that emphasises cuts in wasteful spending (for instance, I am urging the US to end its costly and ineffective military operations in Afghanistan and Iraq) but raises spending meaningfully on investment in primary, secondary and higher education, skills development, modernised infrastructure, low-carbon energy systems and other high priorities, backed by higher tax revenues collected efficiently and equitably, especially from the top tier of income and wealth distribution.

In the same NS article, he also called on Osborne, for whom he acts as a "personal" adviser on development-related issues, to sign up to a global "financial transactions" - or "Robin Hood" - tax and to push the US government to get onboard - something anti-poverty campaigners have been dreaming of for some years now. Imagine the impact of Sachs using the office of the World Bank president to make the same call!

It's been said that Sachs doesn't stand a chance: he is "not under consideration even for the short-list", according to an unnamed US official cited in the BBC report. The US government holds the most votes at the World Bank, so it tends to get what it wants. But Sachs does have the public backing of Kenya, Haiti, Jordan, Malaysia and East Timor; he needs to start persuading other African and Asian governments to come out in support of him too and make some noise on his behalf. There is no point such countries rallying around candidates who aren't Americans. Sachs, at least, is.

It isn't over till it's over. This is an important moment for the world economy; if, against the odds, Sachs got the top job at the World Bank, it could make all the difference to the lives of millions of poor Africans, Asians and south Americans. Writing on Comment is Free on 8 March, US economist and commentator Mark Weisbrot argued:

New leadership at the bank could pull the institution away from enforcing harmful practices. . .

The bank could also play a positive role by increased financing of urgent development needs such as health, education, and sustainable agriculture. In these areas, Jeffrey Sachs has a proven track record over the past decade. He has played an important role in supporting the Global Fund to Fight Aids, Tuberculosis and Malaria, which has saved millions of lives in poor countries. His Millennium Villages project has also provided a significant positive example of how development aid can be used to boost agricultural productivity and health outcomes. This is an important refutation of the widespread cynicism that helps limit the financing of real, positive development aid.

Sachs has also been a strong advocate for debt cancellation in poor countries. His 2008 book Common Wealth provides one of the best overviews of the interrelated problems of climate change, development, poverty, population and health - as well as a set of concrete proposals for addressing them. This is clearly someone who has the knowledge, ideas, and experience to lead the bank in a different direction. He has also been a strong advocate of debt cancellation for poor countries.

Of course the appointment of Sachs wouldn't end global poverty - or the World Bank's "harmful practices" in the developing world - overnight. There is no silver bullet on offere here. The structural - and political problems - will persist. But it would send the right message and would, for the very first time, allow someone with a passion for, and expertise in, development to set the priorities and agenda for one of the world's most important institutions.

Mr Obama - give the job to Jeffrey Sachs. Don't disappoint us - again.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Why I’m thinking of joining the Labour Party

There’s a lot to admire in the direction Jeremy Corbyn is taking the party – perhaps it’s time to get involved.

Why I'm leaving Labour”, as Owen Hatherley remarked a few days ago, appears to be the new “why I’m leaving London”. However, aside from a few high(ish) profile departures, the bigger story is the net increase in membership of 90,000 that Labour has enjoyed since Jeremy Corbyn became leader. Indeed, the last few weeks have got me seriously considering whether I should add to these impressive numbers and join the party myself.

For me, one of the most cheering pieces of news since Corbyn’s victory was the convening of an advisory committee to shadow chancellor John McDonnell, including policy and academic heavyweights such as Mariana Mazzucato, Ann Pettifor, Joseph Stiglitz and Thomas Piketty. It was a clear indication that some fresh and serious thought was going to be put into the creation of a plan for remaking and rejuvenating the British economy. The early signs are that Labour will be offering a dynamic, high-tech economy of the future, with good pay and job security at its heart, which will stand in sharp contrast to the miserable Randian dystopia George Osborne has been pushing the country into during his time at the Treasury.

Also refreshing has been Corbyn’s use of Prime Minister’s Questions to give a voice to those affected by austerity. Given that our media and political class is disproportionately populated by people from privileged backgrounds, it’s really important that an extra effort is made to ensure that we hear first-hand from those bearing the brunt of these policies. It’s right in principle, and it turns out to be good politics as well. Because apparently many Conservative MPs are too stupid to realise that responding to the concerns of working class people with loud, derisive braying merely provides the public with a neat and powerful illustration of whose side each party is on.

Corbyn has taken a lot of flak in the media, and from MPs on the Labour right, for his response to the Paris attacks. But as someone who researches, teaches and writes on British foreign policy, Middle East politics and security issues, my admiration for the Labour leader has only grown in recent days.  

In the atmosphere immediately after a terrorist atrocity, a discourse emerges where caring about the victims and being serious about dealing with the threat are taken to be synonymous with advocating military responses and clampdowns on civil liberties, irrespective of the fact that fourteen years of pursuing this approach under the “war on terror” has only served to make the problem far worse. At times like these it takes a great deal of courage to articulate a careful, cautious approach emphasising non-military forms of action that address root causes and whose effects may be less dramatic and immediate. Many people were simply not in the mood to hear this sort of thing from Corbyn, but his policies are objectively more likely to make us safer, and I admire him for not being intimidated into silence despite the gallons of vitriol that have been poured on him.

In general, on national security, there is something heavily gendered about the narrative that casts the alpha male Cameron keeping Britain safe versus the dithering milquetoast Corbyn who doesn't understand the harsh realities. We reached the nadir of this stone age machismo during the last election campaign when Very Serious Jeremy Paxman put it to Ed Miliband that he couldn’t have Vladimir Putin in a fight.  After the disasters of the last decade and a half, the time is right to articulate a more intelligent, sophisticated alternative to the expensive, counterproductive militarism of the Conservative Party and the Labour right wing.

The question of whether Corbyn can win an election is certainly one that preoccupies me. He will struggle to attract voters to his right just as Yvette Cooper, Andy Burnham or Liz Kendall would have struggled to win back votes Labour lost to the SNP and the Greens. Enthusing and rallying the perhaps 30 per cent of the electorate who are broadly on the left is one thing, but adding the other 6-7 per cent that you need to win an election is another challenge altogether. Corbyn and his team have been on a steep learning curve since their shock victory in September, and they urgently need to clarify their message and improve their media strategy. Almost all the corporate press are bound to remain hostile, but there are ways to provide them with as little ammunition as possible.

More importantly, Corbyn’s team need to find ways of connecting directly with the public and bring them actively into what he's trying to do. In the current anti-politics mood, an opposition party based on a genuine, engaged mass movement could be a formidable force. Initiatives like “Momentum” will need to make quick and substantial progress.

Fundamentally, Corbyn’s Labour has to do what everyone concerned with genuine social progress has had to do throughout history: articulate points of view that go against prevailing orthodoxy, and do so in as persuasive a way as possible. By definition, these are battles against the odds. But you can't win them if you don't fight them. And for me, and I think most people on Corbyn's part of the left, five years of austerity have taken us beyond the point where we can accept the least worst version of the status quo. That prospect has simply become too painful for too many people.

So will I join? I’m still unsure. Without doubt there will be times when the leadership needs constructive, even robust criticism, and as a writer and researcher I may feel more free to articulate that outside of the Labour tribe. But whatever choice I make, the point for me is that this isn’t really about Jeremy Corbyn so much as the wider movement he represents, demanding a real change of course on politics, economics and foreign policy. That collective effort is something I will certainly continue to play an active part in.

David Wearing researches UK-Saudi-Gulf relations at the School of Oriental and African Studies, where he teaches courses on Middle East politics and international political economy. He sits on the steering committee of Campaign Against Arms Trade.