The World Bank and the Gods of Lending

In this blistering exposé, former World Bank employee Berkman demonstrates how the World Bank's mission to “alleviate poverty” has been derailed by corruption, a “bloated bureaucracy” and mismanagement. According to Berkman “the Bank pretends it is lending for noble purposes, while the borrowers pretend they will put the money to good use. This relationship serves both parties well, as Bank staff further their careers and government officials fill their personal bank accounts.” The author argues that the donor community must “drastically reduce its obsession with needless intellectual activities” and “lend less and supervise more” to ensure that loans directly reach the poor rather than corrupt officials. His criticisms and prescriptions are clear and well-supported by scores of photocopies of internal memos and project documents—unfortunately, the abundance of detail occasionally hampers the solid analysis, and readers might find Berkman's tone—which frequently borders on the sarcastic—jarring. Still, the book is a fascinating firsthand account of the bank's failures, and its case studies—notably sections on bank projects in Nigeria and the Gambia—make for a valuable and important read. (June)