World Bank Lacks Democracy, says Christian Aid

Christian Aid has blamed the current crisis over World Bank President Paul Wolfowitz on the institution's "lack of internal democracy".

Wolfowitz is under investigation by the organisation's board of directors after it emerged he had personally overseen the promotion of his girlfriend and awarded her a pay rise twice as large as permitted under bank regulations.

Christian Aid criticised the World Bank for maintaining the "antiquated agreement" which allows the US government to nominate the World Bank president, while European governments nominate the managing director of the organisation's sister agency, the International Monetary Fund.

The US also holds a 16 per cent voting share, while the vote of the majority of the African continent - comprising 47 countries - sits at just six per cent.

Christian Aid has long opposed the election of Wolfowitz in 2005 as President of the World Bank, warning that he would be bad for poor countries.

Charles Abugre, Christian Aid's head of policy, said: "Two years on and Wolfowitz's regime has descended into farce. The self-styled anti-corruption crusader has behaved in a manner he was quick to condemn of recipient governments.

"Democratic choice is at the heart of good governance, yet the bank pursues a policy of telling developing countries - who have almost no say in the election of the president - what to do."

Christian Aid has also accused the World Bank of pushing through "dubious" economic reforms in the guise of good governance.

"The governance issue is, in our view, a Trojan horse for inappropriate liberalisation reforms," said Abugre. He said in a recent loan to Bangladesh, trade liberalisation was "packaged as contributing to 'good governance and anti-corruption'".

Christian Aid called on the UK and other European governments, including France and Germany, to lead by example and give up control over the leadership of the IMF.

"The US should follow suit and relinquish its control over the World Bank," it said.