Changing the World Bank's Incentives from Inputs to Outcomes

Changing the World Bank's Incentives from Inputs to Outcomes | Center For Global Development

World Bank President Ajay Banga recently stated that one of his top priorities was to shift the institution’s incentives from inputs (i.e., loan approvals and disbursements) to outcomes (i.e., the actual impacts of lending on developing countries). This is an old challenge, highlighted by the Wapenhans Report back in 1992, that criticized the organization’s “approval culture” and lack of focus on project implementation. In response to this challenge, former presidents worked to boost organizational effectiveness beyond financial goals. Jim Wolfensohn developed the “knowledge bank” concept to emphasize the non-financial dimension of the Bank’s performance and implemented the matrix to enhance project quality. To overcome regional silos and more effectively identify and spread integrated solutions, Jim Kim established global practices.

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