Background
The departure of Paul Wolfowitz as president of the World
Bank has cast a cloud over the organization and the way that it is governed. Wolfowitz, who was accused of favoritism, was a leading advocate of the fight against corruption. Now the bank will have to re-examine its priorities and heal the splits that emerged between the US and Europe. By tradition the World Bank president has always been appointed by the US government, while the Europeans have had the right to nominate the head of the IMF. Now this convention is under attack. Japan, the World Bank’s second largest donor, has also called for the Bank make a
selection without restricting itself to an American. But it is not clear that either the Europeans or especially the US are prepared to abandon their tacit agreement, and give more power to other countries in the selection process.
New Leading Candidates Robert Zoellick: Ex-US trade representative and Dy Secy of State.
Paul Volker: Former chairman of the Federal Reserves.
Stanley Fisher: Ex-WB and IMF official, now head of Bank of Israel.
Robert Kimmitt: Deputy US Treasury Secretary.
Andrew Natsios: Former director of USAID.
Conclusion Wolfowitz arrived at the World Bank at a very key moment in its development, with renewed calls from Western commitment to end poverty in Africa and tackle climate change. But Wolfowitz”s most controversial policy was aimed at tackling corruption and ensuring good governance. Wolfowitz argued that “when
governments don’t work, the
development assistance we provide to governments doesn’t
work either”. It was unclear however what criteria he used in deciding when to suspend World Bank projects. Now his successor will have to rebuild the image of the Bank and reassures its clients that it is living up to its own ethical principles.
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