President Obama’s nominee for the top slot of the World Bank was named to that post on Monday, but the challenges Jim Yong Kim faces will not just be those of running the institution but of keeping it relevant.
Bloomberg reported Tuesday that Kim’s accession to the World Bank presidency maintains the U.S. hold on the position. However, it will also present the Korean-born former Dartmouth president with the question of how to deal with China and other emerging-market countries at a time when impatience with the institution’s rules can cause them to look elsewhere.
Other countries, such as China, are becoming lenders in their own right to nations that once relied on the World Bank. Not only that, but their contribution to the global economy is rising even as that of developed nations falls. Brazil, Russia, India and China—the BRIC countries—will see their share of the world economy increase to 23% by 2016, up from 19% in 2011, according to a report by Grant Thornton International Ltd. During that time, G7 countries will see their own contribution fall to 44% from 48%.