Corruption and lack of accountability make The World Bank- the most influential money lending firm of the world- one of the “most dysfunctional” in the world, says a report by the Forbes. In a long and detailed report the magazine says, “No one, starting with outgoing President Robert Zoellick, has laid out an articulated vision for what the World Bank’s role is in the 21st century.”
“It is an endlessly expanding virtual nation-state with supranational powers, a 2011 aid portfolio of $57 billion and little oversight by the governments that fund it,” says the magazine. “And–according to dozens of interviews over the past few weeks, atop hundreds more over the past five years, plus a review of thousands of pages of internal documents–problems have gotten worse, not better, at the World Bank despite more than a decade of reform attempts.”
The Forbes report lists the nature of problems — philosophical, structural and cultural. While its leaders have lacked vision, corruption has crept in, says the report. “Internal reports, reviewed by Forbes, show, for example, that even after Zoellick implemented a budget freeze, some officials operated an off-budget system that defies cost control, while others used revolving doors to game the system to make fortunes for themselves or enhance their positions within the bank.
“Why not track all the cash?
“Good luck: Bank sources cite up to $2 billion that may have gone unaccounted for recently amid computer glitches.”
The report in the July 16 edition of Forbes Magazine coincides with a statement from the Bank’s Washington headquarters announcing cancellation, attributed to “credible evidence of corruption”, of a credit line for Bangladesh’s largest infrastructure project.