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World Bank, IMF Give Themselves Raises

Buried in the back pages of the Washington Post:

An activist dressed as World Bank President Robert Zoellick protests in front of the World Bank office in Brussels, Thursday, May 27, 2010.

Pay raises at World Bank, IMF draw criticism

By Howard Schneider
Friday, June 25, 2010; A13

Austerity may be the new reality for public employees in the developed world, whether it is pay cuts in Greece, layoffs in Germany or pension reform in Britain.

But the International Monetary Fund and the World Bank have pushed ahead with pay raises above the rate of inflation for thousands of workers — despite opposition from major funders in the United States and Europe.

U.S. representatives on the IMF and World Bank boards abstained in the recent votes that approved raises of 4.9 percent and 3.7 percent, respectively. They were joined by European nations that felt the increases set the wrong tone when governments are being pushed to retrench. The IMF just released its "Ten Commandments for Fiscal Adjustment in Advanced Economies."

"We greatly value the hard work and expertise of bank staff," said Rob Kelly, a spokesman for Britain’s Department for International Development. But "when governments worldwide are cutting public spending, increasing taxes, and reducing or freezing public-sector pay, to award an above-inflation pay rise risks making the bank appear out of touch." …

But of course the World Bank and the IMF aren’t out of touch at all. They simply want to ‘get it while they can.’

According to [World] bank officials, individual raises are based on job reviews, and most employees will not receive the full amount.

And we believe this.

The IMF uses a similar system; its pay raises were approved in April

But we are only hearing about it now.

U.S. officials, speaking on the condition of anonymity because the pay discussions were private, said they are pushing for a fuller review of a compensation system that outpaces the cost of living.

Sure they are. Our government is always merciless about preventing the squandering of taxpayer dollars, especially when it comes to international aid.

By the way, notice that the Washington Post article does not bother to report how much the employees at these noble institutions currently make.

According the site Glassdoor.com, however, a heck of a lot of the 5,000 employees at the World Bank and the 5,000 employees at the IMF make well in excess of $150,000 a year.

But to be fair, it must be fairly grueling work to give away other people’s money.

This article was posted by Steve on Friday, June 25th, 2010. Comments are currently closed.

One Response to “World Bank, IMF Give Themselves Raises”

  1. fallingpianos says:

    We all know there’s only one way to deal with this problem: throw more money at it.

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