ETHICAL AND

SOCIETAL ISSUES

Fighting Global Poverty with Information Systems ourselves at a major intersection of the network economy where
we help to connect global learning opportunities with investment
The World Bank is not a typical bank, but two financial institutions
assistance to governments. Put another way, it’s about having two
owned by 185 member countries. The International Bank for
currencies: the currency of money and the currency of knowledge.
Reconstitution and Development (IBRD) is the part of the bank that
We believe our work in bringing knowledge and information to
focuses on middle-income and creditworthy poor countries, and
developing countries is as important as the capital and invest-
the International Development Association (IDA) focuses on the
ments that we provide as an engine for development.”
poorest countries. Together, these institutions provide “low-interest
Muhsen’s project cost the World Bank hundreds of millions of
loans and interest-free credit and grants to developing countries
dollars over several years. It included many information system
for education, health, infrastructure, communications, and many
packages including an SAP ERP system; an Oracle Record Integrat-
other purposes,” according to the World Bank Web site. The bank
ed Information System; a multilingual, natural-language system
has about 10,000 employees worldwide, with loans of about $20
from Teregram for document management; a custom-designed,
billion annually.
Web-based dashboard interface; Lotus Notes for e-mail, online
In recent years, the World Bank has suffered from front page
collaboration, and content storage; and IBM WebSphere. While
scandals regarding suspected improprieties with its senior-level
these systems cost the World Bank nearly $100 million, the bulk of
officials. In 2007, World Bank president Paul Wolfowitz was pres-
its investment went to building its own global, high-speed network
sured to resign, and in 2005, vice president and CIO Mohammed
infrastructure complete with regional satellites and miles of fiber
Muhsen retired under a cloud of suspicion. However, while the
optics to provide network connectivity to remote and poor regions
press and the world were focused on corruption in the World
of the world.
Bank, some very positive developments were taking place with
World Bank infrastructure and information systems that went
relatively unnoticed. Discussion Questions
The World Bank has traditionally been run as a top-down hier- 1. Why do you think Muhsen believes that the knowledge
archy, which is a traditional organizational structure. In recent provided to its customers by the World Bank’s information
years, through the use of global information systems, the World system is equal in value to the money loaned? Do you
Bank has transformed into a “decentralized, front-line, matrix believe this to be true? Why?
organization,” observes a recent article in Baseline magazine. 2. What unique challenges does the World Bank face when
Rather than controlling information systems from the top, the designing an organization-wide information system?
World Bank has been investing to empower its clients with the
information systems they need locally to participate in the global Critical Thinking Questions
economy.
1. Once the network infrastructure is created that connects
The effort to distribute economic knowledge to World Bank
the World Bank to its customers, what types of services
customers began in the mid-1990s with then-president James
might it support?
Wolfensohn. In a 1996 speech to the Bank Board of Governors,
2. Mohammed Muhsen invested 17 years of his life in devel-
Wolfensohn said, “The revolution in information technology
oping the World Bank’s international knowledge network,
increases the potential value of [the bank’s development] efforts by
but retired under a “cloud of suspicion” over investments
vastly extending their reach. We need to invest in systems that will
he allegedly made in an information system company that
enhance our ability to gather information and experience and
was contracted by the World Bank. What lessons can be
share it with our clients.” Ex-World Bank CIO, Mohammed Muhsen,
learned from the unfortunate circumstances of Muhsen’s
embraced that mandate to revamp the World Bank’s information
retirement?
infrastructure and communications networks to create a global
knowledge-sharing network, which has been highly praised in the
SOURCES: McCartney, Laton and Watson, Brian, “World Bank: Behind the IT
industry.
Transformation,” Baseline, August 5, 2007, www.baselinemag.com/
Wolfensohn and Muhsen were among the first to formalize print_article2/0,1217,a=212463,00.asp. World Bank Web site,
what is now referred to as a knowledge management information www.worldbank.org, accessed December 27, 2007.
system. Muhsen defined his mission as follows: “We position