The utter silliness of the bureaucrats who think they are in charge of the world’s economy never ceases to amaze me. The latest example was a statement early this month by the newly appointed head of the World Bank. He says his organization has such important expertise that the European Commission should be willing to pay for it to solve its crisis. Reuters reported:
The new head of the World Bank said on Monday he was willing to let the global development lender advise troubled developed nations like Greece, a major shift for an institution that has focused on the world’s poorest.
While Jim Yong Kim emphasized that his top priority would be to protect developing nations at a “pivotal moment” for a world economy that is losing steam rapidly, he said the bank could also deploy its technical know-how to help richer nations with structural problems.
“We only go into countries when asked, but I feel the kind of expertise we have could be relevant in many, many countries in the world, including high-income countries,” the Korean-born American told reporters on his first day on the job.
“My staff feel they have the relevant experience that could add value … if that is the case and we are asked, I could be open to the possibility” of helping Greece, he added.
The World Bank has been a bureaucratic organization that has used borrowed funds to send money to Third World dictators to set up gigantic boondoggles for 60 years. The money is then spent in the West’s large suppliers of equipment. The loans are paid back through taxation and more borrowing by Third World dictators that replace the previous crew.
It has nothing but Keynesians on its staff. It has no expertise at showing national politicians how to get their economies growing.
The previous head of the World Bank knew better than to get involved in the Greek quagmire. On June 14, Robert Zellnick said that the idea of the bank getting involved in Greece was a bad one for the Bank. If the bank had gone in “as a reform taskmaster for the Greek government … it might not be as productive for Greece as it would be harmful to the bank.” But the new guy, a former college president, think otherwise.
Then comes this fantastic idea.
One idea bank officials have discussed is for the European Commission to fund World Bank technical advice in Greece.
By charging for its advice, the World Bank would boost its own revenues at a time lending returns are set to decline as more borrowers gain access to capital markets. Big bank shareholders, like the United States, are also cutting budgets and would be hard pressed to persuade their legislatures to pony up more money for the World Bank.
“We are not talking about the World Bank investing massive amounts of finances in high-income countries,” Kim said. “Where we feel we can add value is in the technical support around some of the structural issues that some countries are facing.”
Kim has no training as an economist. He is a physician by training and a college fund-raiser by profession.
The utter futility of buying World Bank expertise to solve Europe’s growing crisis reveals that at the top of the internationalists’ hierarchy are truly silly people. These people think their programs are anything but ways to fund large Western corporations.