The World Bank, best known for helping developing nations from Kenya to Pakistan combat chronic poverty, is advising euro-area members Greece and Cyprus on how to strengthen their economies in the wake of debt crises. <\/p>\n
About 55 World Bank staff have spent some time in the Mediterranean nations to advise them on competitiveness, welfare policies or public administration, according to Dirk Reinermann, who manages the programs. Based on the collaboration, Greece this month plans to announce a new system to simplify the process of setting up a business, Development Minister Kostis Hatzidakis said in an e-mail. <\/p>\n
World Bank President Jim Yong Kim is taking on little-publicized consulting work from developed nations to find a new outlet for the banks expertise in a test of the demand for services that would otherwise be provided by private companies. Officials in Greece and Cyprus, initially reluctant to work with a poverty-reduction agency, are indicating the partnerships are starting to show results. <\/p>\n
In some parts of the world, some parts of Europe, we have a bit of a perception of being the bank of poor countries only, Reinermann said in an interview last month in Washington. As we work in more countries, this perception will fade over time. <\/p>\n
Kim, a physician and former president of Dartmouth College in Hanover, New Hampshire, has set a goal of ending extreme poverty by 2030 and boosting the income of the poorest 40 percent. Offering advice to wealthier members may also bring in business once the number of borrowers starts to dwindle, said Eswar Prasad, who teaches economics at Cornell University in Ithaca, New York. <\/p>\n
The World Bank might be strategically positioning itself for a future where, if it is successful in its mission of poverty reduction, it will have to seek other avenues of engagement with a broader group of its member countries in order to maintain its relevance, said Prasad, a former International Monetary Fund official. <\/p>\n
Demand for such advisory services has doubled to $95 million this year from 2012, covering 70 programs in 14 countries, including Poland and Romania, according to the bank. The Greek and Cyprus services combined are billed at about $6 million to Cyprus and the European Union, which led bailouts of the two crisis-stricken countries. <\/p>\n
Its a small business for the Washington-based agency that has about 15,000 employees and made $53 billion worth of loans, investments and guarantees last year. The bank says it doesnt profit from the consulting activities, charging just enough to recover costs such as salaries and travel. <\/p>\n
While still limited in scope, Kims expansion of advisory services beyond the worlds poorest countries is drawing criticism that its unnecessary and is spreading the lenders capabilities too thin. <\/p>\n
We do fear that the bank is simply testing the water before seeking to increase significantly these sorts of consultancies, said Sargon Nissan, a program manager at the Bretton Woods Project, a London-based watchdog of the bank and the IMF. He said the banks advisory work does much the same as the IMF, yet at a more micro level. <\/p>\n
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World Banks Greek Welfare Fix Shows Shift From Emerging Markets<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The World Bank, best known for helping developing nations from Kenya to Pakistan combat chronic poverty, is advising euro-area members Greece and Cyprus on how to strengthen their economies in the wake of debt crises. About 55 World Bank staff have spent some time in the Mediterranean nations to advise them on competitiveness, welfare policies or public administration, according to Dirk Reinermann, who manages the programs. Based on the collaboration, Greece this month plans to announce a new system to simplify the process of setting up a business, Development Minister Kostis Hatzidakis said in an e-mail Continue reading