From left to right: (standing) Samy Watson, Svein Aass, Alexey Kvasov, Terry O’Brien, Eli Whitney Debevoise, Tom Scholar (end of service June 27, 2007), Pierre Duquesne, Herman Wijffels, Michel Mordasini, Eckhard Deutscher, Gino Alzetta, Makoto Hosomi, Jorge Familiar, Merza Hasan, Dhanendra Kumar, Felix Alberto Camarasa, Jorge Botero; (seated) Sid Ahmed Dib, Giovanni Majnoni, Abdulrahman Almofadhi, Mulu Ketsela, Mat Aron Deraman, Louis Philippe Ong Seng, Zou Jiayi.
© The World Bank

EXECUTIVE DIRECTORS, ALTERNATES, AND COMMITTEE MEMBERSHIP

The Executive Directors are responsible for the conduct of the Bank’s general operations. They perform their duties under powers delegated by the Board of Governors. As provided in the Articles of Agreement, 5 of the 24 Executive Directors are appointed by single countries having the largest number of shares. The rest are elected by the other member countries, which form constituencies in an election process conducted every two years. The resident Board of Executive Directors (the Board) represents the evolving perspectives of member countries on the role of the Bank as well as its operational experience.

The Board considers and decides on the IBRD loan and guarantee proposals and IDA credit, grant, and guarantee proposals made by the Bank’s President. Executive Directors fulfill an important role in guiding the general operations of the Bank and its strategic direction. They are also responsible for presenting to the Board of Governors audited accounts, an administrative budget, and an annual report (this report) on the operations and policies of the Bank, as well as any other matters that, in their judgment, require submission to the Board of Governors. The Independent Evaluation Group (IEG) reports directly to the Board with independent advice on the relevance, sustainability, efficiency, and effectiveness of operations.

Executive Directors serve on one or more standing committees: Audit; Budget; Committee on Development Effectiveness (CODE); Committee on Governance and Administrative Matters (COGAM); and Personnel. With the committees’ help, the Board discharges its oversight responsibilities through in-depth examinations of policies and practices. The Executive Directors’ Steering Committee, an informal advisory body, also meets regularly.

The Board’s work remained closely aligned with the twin pillars of the Bank’s strategic framework—promoting a favorable investment climate and empowering poor people. In March 2007, the Bank President initiated a broader look at the Bank’s long-term strategy. This review, which will be the first sustained review since the current twin pillars strategy was adopted in January 2001, will be led by the Chief Economist.

The papers and reports that the Board considered in fiscal 2007 included such topics as trends in official development assistance; progress in the Bank’s Africa Action Plan; progress with the Clean Energy for Development Investment Framework; implementation issues surrounding debt relief, including development of a comprehensive framework for the settlement of protracted arrears cases; and progress on global trade, specifically the Doha Development Agenda and Aid for Trade. The Board also discussed the Bank’s policy for rapid response to crises and endorsed a new framework for strengthening the Bank’s engagement in fragile states. On the governance and anticorruption (GAC) agenda, Executive Directors supported the principles of transparency, predictability, consistency, and equity of treatment across member countries. They also reaffirmed their engagement and oversight during implementation of the GAC agenda. With respect to the External Review Committee on Bank-Fund Collaboration, Directors noted the importance of effective collaboration between the Bank and the International Monetary Fund.

Oversight and Fiduciary Responsibility

The Board exercises oversight and fiduciary responsibilities, in part through its Audit Committee. The Audit Committee has a mandate to assist the Board in overseeing and making decisions regarding the World Bank Group’s financial condition, its risk management and assessment processes, the adequacy of its governance and controls, and its reporting and accounting policies and procedures.

Administrative Budget

The total administrative budget for fiscal 2007, reviewed by the Budget Committee and approved by the Executive Directors, was $2,119 million, net of reimbursements, including $171.8 million for the Development Grant Facility and the Institutional Grant Programs. The net administrative budget of $1,591.3 million represented a 3.1 percent nominal increase over the fiscal 2006 budget. In June 2007, the Executive Directors approved a total administrative budget, net of reimbursements, of $2,148.3 million for fiscal 2008.

Inspection Panel

In fiscal 2007, the Inspection Panel received six requests for inspection involving Bank projects in five countries. Since the panel’s establishment, 46 requests for inspection have been received: 14 from Africa, 15 from Latin America and the Caribbean, 11 from South Asia, 4 from East Asia and Pacific, and 2 from Europe and Central Asia. Of the 46 requests, 41 were registered, and the panel has recommended investigations in 22 cases, 6 under the rules that applied before the April 1999 clarifications to the resolution that established the panel, and 16 since those clarifications were adopted. As of June 2007, the panel was conducting three investigations.

The Inspection Panel provides a vehicle for private citizens, especially poor people, to bring claims to the World Bank’s Board of Executive Directors, who then decide, on the recommendation of the panel, whether an investigation will take place. The process for addressing claims has empowered and given voice to people who may have been affected adversely by Bank-financed projects.

Requests for inspection, management responses, panel recommendations, panel investigation reports, and management recommendations for projects reviewed this fiscal year can be found at www.worldbank.org/inspectionpanel.

Resignation of President and Selection of New President

In April 2007, the Board was faced with a leadership crisis that led to the resignation of the World Bank Group’s President, Paul D. Wolfowitz. The Board has since unanimously confirmed Robert B. Zoellick as the Bank’s 11th President, as of July 1, 2007, for a five-year term.

The Independent Evaluation Group