IFEZ Journal

INTRODUCING THE WORLD BANK

 

Meet the International Organizations of IFEZ <Spotlight on the World Bank>

The World Bank is an international financial institution, founded alongside the International Monetary Fund (IMF) at the 1944 Bretton Woods Conference, held in New Hampshire, United States, to seek and establish the framework for the post-World War II international economic system. The term “World Bank Group” collectively refers to five institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—both established to eradicate poverty—along with the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). IFEZ’s Special Advisor for International Cooperation Shin Yong-seok—who has broadened the region’s international, historical, and cultural horizons—sat down for a conversation with Jason Allford, country manager for the World Bank Group Korea Office.

SPECIAL INTERVIEW

Shin Yong-suk

special advisor for international cooperation within
Incheon Free 

Economic Zone (IFEZ)

Jason Allford

Country Manager, World Bank Group Korea Office

Shin Yong-suk Thank you for taking the time to join us. To begin with, could you tell us about your academic background and your affiliation with the World Bank?

알포드 Allford: Born in Australia, I completed my undergraduate degree in Economics at the University of Tasmania and earned my Master’s in Economics from the London School of Economics and Political Science in the UK. Afterwards, I worked at the Australian government’s Department of the Treasury in Canberra, focusing on macroeconomic analysis and financial policy. From 2014, I served as a World Bank Executive Director, representing 15 Asia-Pacific countries, including South Korea, and have also served as a financial policy advisor for countries in Africa, Eastern Europe, and the Middle East.

Shin Yong-suk Could you tell us why the World Bank Korea Office chose to set up in Incheon and how it is currently operating?

Jason Allford I started as the country manager for the World Bank Group Korea Office in August 2021, but back in 2013, when the office was first established, the Korean government and Incheon City were already actively moving forward with detailed and ambitious plans to develop Songdo New City into a global hub. For these reasons, the World Bank selected Incheon based on the city’s comprehensive support, its ability to attract global attention, and its potential for partnerships with UN entities like the Green Climate Fund (GCF). Including myself, more than 40 employees and consultants are happy to work in the efficient office environment at Songdo International Campus, a well-planned new city that fosters close collaboration with many foreign universities and UN agencies, including the GCF.

Shin Yong-suk Could you tell us about the history of the early ties between South Korea and the World Bank?

Jason Allford South Korea, which joined the World Bank as the 58th member in 1955, following the Korean War, was one of the poorest nations in the world, and its first project focused on the reconstruction of its railway system. In 1977, South Korea started making contributions even as it continued to borrow from the World Bank, and by the early 1990s, it had completely repaid all its loans.

Shin Yong-suk South Korea has, as I understand, evolved from a recipient country into a donor country for the World Bank. Are there other nations with similar experiences?

Jason Allford By 2003, South Korea had fully repaid the emergency loans it had taken from the World Bank and IMF during the 1997 financial crisis and it has since become one of the World Bank’s major donor countries. Among the World Bank’s 189 member countries, South Korea transitioned quickly from a recipient of the International Development Association (IDA), which serves the world’s poorest nations, to becoming a major donor. Other countries have moved from being a recipient to a donor, but not as quickly as South Korea.

Shin Yong-suk Do other member countries recognize that South Korea, which was once among the developing nations, has now grown enough to become a capital contributor to the World Bank?

Jason Allford Absolutely. Many members want to visit South Korea to see and learn firsthand how it was able to move beyond developing country status in such a short period. The World Bank Office also collaborates with various Korean partners to study Korea’s development journey and strives to pass on this knowledge to other countries in East Asia. With our Korean partner agencies, we have supported project implementation in many developing countries in Asia. Since the Korean War, South Korea has dedicated significant efforts to establishing and registering property rights, thereby building valuable expertise and data that have now been digitized and shared to help farmers in countries like Indonesia secure their land rights. I believe it is necessary to continue sharing South Korea’s successful development planning practices in the future with many countries in Africa and Central Asia.

Shin Yong-suk Since entering the 21st century, Koreans have played significant roles on the global stage, including Dr. Lee Jong-wook, elected as director-general of the World Health Organization (WHO), Ban Ki-moon, who served as UN secretary-general, and Dr. Jim Yong Kim, who was appointed as president of the World Bank. Could you share any notable memories or stories about President Kim, in particular?

Jason Allford Dr. Jim Yong Kim is a U.S. citizen, of course, but I was pleasantly surprised that President Obama appointed a Korean-American academic as the World Bank’s president. When he, a former president of Dartmouth College—one of the Ivy League universities in the U.S.—served as chairman of the board, I met with him twice a week as a board member. He got along well with many different people, had strong skills of persuasion, and could effectively communicate the World Bank’s mission to the public. He also achieved the remarkable feat of persuading many countries to increase the World Bank’s capital by $13 billion.

Shin Yong-suk Since President Trump took office, the U.S. has cut and suspended aid to developing countries, which has raised concerns at the World Bank. I’ve also heard that the Bill & Melinda Gates Foundation, the world’s largest philanthropic organization, has been shocked by this situation.

Jason Allford I cannot comment here on the political stance of the U.S., the World Bank’s largest shareholder, but aid remains critical to the growth of developing countries. The World Bank needs the support of the U.S. and organizations like the Gates Foundation to achieve its mission of poverty reduction.

Shin Yong-suk Even though South Korea is now a developed country, housing-related retail finance, including mortgage loans, is still considered to constitute a significant share of the financial demand for major banks. As an economic expert at the World Bank, what is your view on this?

Jason Allford The World Bank typically exercises restraint in discussing the domestic issues or economic policies of its capital-contributing nations. Korea’s distinctive industrial structure, made up of large companies and small and medium-sized enterprises, seems to have caused such a unique situation. I think that because of the relatively small number of mid-sized companies between large corporations and SMEs, financial demand tends to focus more on retail finance for individuals. I expect that Korea’s financial landscape will gradually move toward becoming more like those of other leading developed countries in the future.

Jason Allford I first visited Songdo in 2017, and when I returned in 2021 to open the World Bank Korea Office, I was deeply impressed by how dramatically the new city had developed and changed over the course of just four years. In particular, the design and development of Songdo Central Park, located in the center of the new city, was amazing. I am stunned at how Songdo has grown into such a beautiful new city, and I consider it a great opportunity to collaborate here with various Korean partners, international organizations, and prestigious university campuses. I believe no other city is implementing a smart city development plan as successfully as Songdo.

The World Bank Website