The challenge of good governance for the IMF and the World Bank themselves

This article argues that there are both practical and principled reasons for improving the standards of ægood governanceÆ within international organisations. The author argues that if the IMF and the World Bank are to achieve the same standards of good governance that they have defined for borrowing members, reform of the constitutional rules, decision-making procedures and practices within both institutions is required. The article argues for change in the voting structure, respective roles played by the Executive Board, consensus decision-making, nongovernmental organisations, and the staff, management and research in both organisations. The author suggests that ôwhile both the IMF and World Bank often write of the necessity of including stakeholders in the initiation and design of programs and policies, neither institution has adequately included all present-day stakeholders in its own governance.ö In conclusion the author also makes links with increased participation within member countries as well as an increased recognition and value of ælocal knowledgeÆ by the two institutions.