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Donohoe (R) meeting former US Treasury Secretary Janet Yellen IN 2022. Alamy Stock Photo
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Paschal Donohoe is off for a big job in the States, but what does the World Bank actually do?
The finance minister is stepping down to take a US-based job as the World Bank’s number two.
PASCHAL DONOHOE HAS resigned from Cabinet today, after it was confirmed that he will be heading to a senior position at the World Bank.
The surprise development emerged this morning shortly after ministers convened for a regular weekly meeting.
Donohoe, first elected to the Dáil in 2011, has served as minister for Finance (2017–2022 and since January), minister for Public Expenditure, and President of the Eurogroup since 2020.
His departure from government and the Dáil has triggered a Cabinet reshuffle and a by-election in the Dublin Central constituency. But what does it mean for Donohoe himself?
What is the World Bank?
The World Bank Group is a family of five international organisations that make loans and provide technical assistance to developing countries.
It is the largest and best-known development bank in the world and an observer at the United Nations Development Group.
In 2021 alone, it provided almost $99 billion in loans and aid to countries classified as developing or in transition.
Its stated mission is to end extreme poverty and promote shared prosperity, though its work also covers infrastructure, health, education, and economic policy.
What is Donohoe’s new role?
Donohoe is stepping into the role of managing director and chief knowledge officer, a new position which effectively makes him the Bank’s number two.
The board of the bank approved the appointment last night.
The job will be US-based as the Bank’s headquarters is situated in Washington DC, meaning Donohoe will be heading stateside for the gig.
The role will involve shaping global strategy, coordinating research and advice, and overseeing how loans and technical support are deployed to tackle poverty and support projects in developing countries.
According to the World Bank, Donohoe will lead on shaping, managing, and leveraging the institution’s Knowledge Bank.
He is responsible for ensuring the World Bank Group offers its sovereign and private clients “proven solutions”.
He will also be responsible for the group’s strategic engagement with governments, civil society, foundations and philanthropies.
Donohoe will be working closely with the Bank’s President, Ajay Banga, as well as 11 other members of senior leadership.
In a statement issued on behalf of the bank, Banga said Donohoe brings “extensive knowledge of how investors, private sector, financial companies, technology firms, and others operate – from his near decade of experience in the private sector.”
Donohoe has not yet spoken to the media about his departure from government, but said in a statement provided by the World Bank that it is a “tremendous honour” to take up his new role.
“In more than twenty years as a public representative, my motivation has been to improve the lives of all the people I represent and to foster engagement and cooperation as the best means of progressing vital issues,” he said.
Donohoe’s party leader said in a post online that Donohoe’s appointment “reflects the regard in which he is viewed on the global stage”.
“While I always knew this day would come it is a day of mixed emotion. It is a moment of sadness for the Fine Gael family, but it is also a moment of great pride for Ireland,” Harris said.
Additional reporting by Emma Hickey
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