Conable was appointed as the seventh president of the World Bank in 1986 by Ronald Reagan. He had no qualifications to justify his appointment, but he had been a highly respected Republican congressional representative for 20 years and had recently retired. His financial knowledge, budgetary expertise, and understanding of complex trade and tax issues made him an ideal candidate for the post.
Conable was born in Warsaw in Wyoming County on November 2, 1922. He graduated from Cornell University in 1942. Interrupting his studies, he left to serve the Marine Corps during the Second World War in Iwo Jima. After the war, he returned, completed his legal studies, and graduated with honors from Cornell Law School in 1948. He was then recalled for military service in Korea, where he reached the rank of Colonel.
Conable opted for a political career after practicing law in New York for a short period. He became a Republican member of the New York State Senate in 1962. Then, in 1964, he was elected for the first time to the U.S. Congress. He returned nine times to serve two-year terms.
Conable acquired a valuable reputation for his integrity and reliability. Members of both parties respected him. His achievements as a Republican congressional representative included reforms regarding American tariffs, capital gains, and Social Security; lower personal income taxes; and an increase in depreciation allowances for businesses.
Conable served on the Ways and Means Committee for 18 years, demonstrating and developing further expertise in the area of budgeting. His expertise was put to the test when it came time to reform the American tariff system. The State and Local Fiscal Assistance Act of 1972 proposed a revenue-sharing concept favoring lower levels of government. Conable, a supporter of this legislation, faced opposition from leaders of both parties while on the Ways and Means Committee. However, he succeeded in moving the bill through the Ways and Means Committee and got it approved by Congress.
Conable was president of the World Bank for five years, from 1986 to 1991. He recognized that the Bank was a large organization with huge overhead expenses requiring a very large administrative budget. Therefore, he began reorganizing the Bank's structure. An external consulting firm analyzed the Bank's functions to suggest changes, while an internal committee was appointed to implement the changes. With the approval of the Bank's board in May 1987, the restructuring began. Large numbers of staff positions were cut.
Conable undertook many other important and urgent tasks in addition to the reorganization of the World Bank. The International Development Association was in need of funds, and negotiations were completed quickly. Conable then got support from the U.S. Congress for a general capital increase (GCI) for the World Bank.
The debt crisis faced by the developing world was another situation Conable worked to improve. He sought the help of the International Monetary Fund (IMF), but special debt restructuring packages did not reduce the debt. Then, with the help of the U.S. Treasurer, the Bank worked out a new debt strategy that helped five countries create plans for debt reduction.
While collaborating with the IMF, Conable realized the importance of working jointly, and this led to a negotiated concordat that allocated primary responsibilities between the two institutions.
Under the leadership of Conable, the World Bank undertook reforms of its environmental policies. As part of the restructuring of the Bank, an environment department was created. This department reviews and directs research and policy on environmental issues and discusses the environmental implications of projects.
