World Bank restructures accountability mechanism for improved efficiency

World Bank restructures accountability mechanism for improved efficiency
Banking & Financial Services
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Ajay Banga, 14th president of the World Bank | World Bank website

The World Bank's Board of Executive Directors has approved modifications to the structure of the organization's Accountability Mechanism. The decision, made on January 8, aims to enhance independence and improve the overall effectiveness and efficiency of the accountability process.

These changes will enable the Inspection Panel (IPN) and the Dispute Resolution Service (DRS) to function as separate units, each reporting independently to the Board. Additionally, a new position, Executive Secretary, will be established to support both units. This role will involve providing administrative, communication, and coordination services under the supervision of both the IPN Chair and the Head of DRS.

These organizational changes are based on recommendations from an external review team appointed by the Board last year. Their report explored options for improving accountability processes at the World Bank. The changes are expected to take effect in the coming weeks following amendments to governing resolutions by the Board.

The ongoing cases will remain unaffected by these adjustments. However, "the Board will continue to consider additional reforms to further strengthen overall accountability at the World Bank."

Established in 2020 by the Board, AM and DRS provide project-affected communities with dispute resolution options for addressing their concerns. The Inspection Panel was set up in 1993 as an independent mechanism for compliance reviews following complaints from affected individuals.