XXXIX Course on International Law Current Issues in International Development: Some Perspectives...
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Transcript of XXXIX Course on International Law Current Issues in International Development: Some Perspectives...
XXXIX Course on International Law
Current Issues in International Development: Some
Perspectives from the World Bank
Lecture 1The Rule of Law in the World Bank: Legal and
Policy Issues
Anne-Marie LeroySenior Vice President and General Counsel,
World Bank
Outline
I. Introduction to the World Bank Group
II. The Legal Order of International Organizations
III. Understanding the Rule of Law in the World Bank’s Legal Order
Introduction to World Bank Group
What is the World Bank? World Bank Group - Composition
International Bank for Reconstruction and Development (IBRD) — 1944
International Finance Corporation (IFC) — 1956 International Development Association (IDA)
1960 International Centre for Settlement of
Investment Disputes (ICSID) — 1966 Multilateral Investment Guarantee Agency
(MIGA) — 1988 IBRD + IDA = “The World Bank”
International Bank for Reconstruction and Development (IBRD)
Established at Bretton Woods with IMF Reconstruction and Economic Development
after World War II Development assistance for Middle-Income
and Creditworthy Low-Income Countries Borrows from Capital Markets; AAA Rating Objectives and instruments Evolved over time Poverty Reduction Mandate
International Development Association (IDA)
Bank’s Concessional Lending Arm Loans on Most-Favourable Terms to
Development Countries Periodic Replenishments from Rich Members IDA Funds Allocated to Borrowers Based on
Income Levels and Track Record Special Allocations for Conflict Legally and Financially Distinct from IBRD but
Same Management and Staff
Bank Ownership and Governance Structure
Shareholders are all Member Countries IBRD – 187 members; and IDA – 170 members Voting Proportionate to Member’s Shares
Board of Governors Highest Decision-Making Organ; Each Member
Appoints a Governor Meets Annually; Mail Votes
Executive Directors (24) 5 Largest Shareholders Appoint Separate Directors Other Shareholders elect 19 Directors
President - appointed by Executive Directors
Bank’s Board of Governors v. Executive Directors
Board of Governors All corporate authority vested in governors Governors may delegate some powers to directors List of “Reserved Powers”
Powers of Executive Directors Responsibility for Bank’s general operations Exercise all powers delegated by Governors Power to select World Bank president, interpret
Articles, establish committees Dual duties: Bank official and country representative
Bank President Appointed and fired by Executive Directors
Cannot be a Governor or Executive Director 2011 New Guidelines
Chief of staff and Conducts Ordinary Business Subject to Board’s General Control
Appointment and Dismissal of Staff 5-Year Renewable Contract Duty to the Bank alone
Bank’s Accountability and Review Entities
Administrative Tribunal; Inspection Panel; Sanctions Board; Access to Information Board
Internal Audit Department; Independent Evaluations Group
Internal Transparency and Accountability No Strict Articles Basis
President’s Power to Conduct Ordinary Business Others Entities under Implied Powers
Varying Operational and Functional Autonomy
The Legal Order of International Organizations
Elements of the Legal Order Constitution Decisions and Rules of the
Organization International Law (treaties, general
principles, custom)
World Bank’s Internal Legal Hierarchy
Manuals Policies, Rules, and Procedures Issued by Management
Applicable Rules of
International Law (relevant treaties and
custom)
ARTICLES OF AGREEMENT
By-laws
Governors’ Resolutions (Including Statute of Administrative Tribunal)
(in
Board Resolutions and Board Approved Policies and Procedures
Understanding the Rule of Law in the World Bank’s Legal
Order
Characteristics of the Rule of Law Rules known in advance Enforceable rules Mechanisms for ensuring proper
application of rules and departure from them according to established procedures
Resolution of conflicts in the application of the rules through binding decisions of an independent judicial or arbitral body
Known procedures for amending rules when they no longer serve their purpose
Challenges in the application of the Rule of Law in the World Bank’s Internal Legal Order
Transparency and Predictability Existence of disperse and scattered rules Multiple processes for adopting exception
from rules Enforceability and Accountability
Operation of various accountability and oversight bodies
Absence of a court of law to adjudicate on internal institutional differences
Promotion of the Rule of Law through the Bank’s organs
Role of Executive Directors Interpretation of the Articles of
Agreements not as a court of law, but constrained by the Bank’s legal framework and guided by the requirements of effectiveness, reasonableness, good faith, and the Bank’s common interests and those of its members as a whole.
Possibility to acting as an informal dispute resolution mechanism for differences between entities established by the Board.
Promotion of the Rule of Law through the Bank’s organs Role of President and Management
Interpretation of the Bank’s internal rules within the Bank’s legal framework and guided by the requirements of effectiveness, reasonableness, good faith, and the Bank’s common interests.
Operation as informal dispute resolution mechanisms for institutional disputes between subordinate units
Promotion of the Rule of Law through the Bank’s organs Role of General Counsel
Provision of legal advise for the interpretation of the Bank’s Articles and policy decisions by the Executive Directors
Approval of all lending operations prior to the Executive Directors’ approval
Interventions in institutional controversies upon request from the Executive Directors or Management
Recent Initiatives for the Promotion of Internal Rule of Law
Access to Information Policy Sanctions Reform Modernization and Consolidation of Operational Policies and Procedures
The External Effect of a World Bank’s Legal Order governed by the Rule of Law
Effectiveness Legitimacy Consistency with the
organization’s mandate