The Three Main Institutions
Has imposed misguided policies?
Dominated by rich countries and corporations?
Wastes resources on corrupt elites?
The World Bank President
Traditionally, the Bank President has always
been a US citizen nominated by the (president
of the) United States, the largest shareholder
in the bank.
Current President: Jim Yong Kim - first Bank
leader whose professional background is not
in the political or financial sectors.
The World Bank
The World Bank Chief Economist provides
intellectual leadership and direction to the
Bank’s overall development strategy and
economic research agenda. As a member of
the Bank’s senior management team the
person advises the President and Bank’s
management on economic issues.
Anne Osborn Krueger— 1982–1986
Stanley Fischer — 1988–1990
Lawrence Summers — 1991–1993
Michael Bruno — 1993–1996
Joseph E. Stiglitz — 1997–2000
Nicholas Stern — 2000–2003
François Bourguignon — 2003–2007
Justin Yifu Lin — 2008–2012
Kaushik Basu (September 2012-)
Regional and National Development Banks
• EIB (European Investment Bank)
• IADB (Inter-American Development Bank)
• ADB (Asian Development Bank)
• AFESD (Arab Fund for Economic and Social
• EBRD (European Bank for Reconstruction and
Measuring Economic Development
Simon Kuznets, the winner of the 1971 Nobel
Prize in economics, developed the basic
concepts of national-income accounting
during the 1920s and 1930s.
Weaknesses of GDP
Definition GDP (Gross Domestic Product): The total
market value of all final goods and services produced
in a country in a given year
Price increases = Wealth increases?
Counts remedial and defensive expenditures as
positive contributions to commerce.
Does not include non-market benefits
Does not include black-market activities
GNH "Gross National Happiness"
The term "gross national happiness" was coined
in 1972 by Bhutan's former King Jigme Singye
Wangchuck, who has opened Bhutan to the age
•establishment of good governance
•conservation of the natural environment
•preservation and promotion of cultural values
Scientific Theory of Happiness
The PERMA Model
Psychologist Martin Seligman provided the acronym PERMA to summarize
Positive Psychology's findings: humans seem happiest when they have:
Pleasure, Positive Emotion (tasty food, warm baths, etc.),
Engagement (or flow, the absorption of an enjoyed yet challenging activity),
Relationships (social ties are a reliable indicator of happiness),
Meaning (a perceived quest or belonging to something bigger), and
Accomplishments (having realized tangible goals).
The Happiest Place on Earth: Denmark
The Happiest Place on Earth: Denmark
• Relative equality between the citizens
• High-quality government services such as
mass transportation, healthcare, subsidized
child care, and a free educational system (all
the way through college).
• A high amount of trust between the citizens
and the government.
• Relatively low expectations
• The provision of financial services to low-
income clients or solidarity lending groups
including consumers and the self-employed,
who traditionally lack access to banking and
• Not just credit but also savings, insurance,
and fund transfers.
• Muhammad Yunus:
2006 Nobel Peace Price
The New Development Bank (NDB), formerly referred to as the BRICS
Development Bank, is a multilateral development bank operated by the BRICS
states (Brazil, Russia, India, China and South Africa) as an alternative to the
existing US-dominated World Bank and International Monetary Fund. It will be
headquartered in Shanghai, China. Unlike the World Bank, which assigns votes
based on capital share, in the New Development Bank each participant country
will be assigned one vote, and no countries will have veto power.