TMP editor, Chuka Umunna, ponders who should be appointed to succeed Paul Wolfowitz as president of the World Bank.
So, the arch neo-conservative, Paul Wolfowitz, has been given the boot – sorry, resigned – from the presidency of the World Bank. He supposedly did so with his reputation in tact.
The statement issued by the Board of the bank last week said they accepted that Wolfowitz “acted ethically and in good faith in what he believed were the best interests of the institution”, in the controversy which led to his departure – the promotion of his girlfriend, a World Bank staffer. If that were the case, why did he resign?
The Board went on to say that it was clear “that a number of mistakes were made by a number of individuals in handling the matter”, but they did not actually name Wolfowitz as a culprit. So are we to believe he was not personally at fault? There appears to be somewhat of an inconsistency here.
So now he is off, who should replace Wolfowitz to become the eleventh president of the World Bank?
The bank is primarily made up of two development institutions, the International Bank for Reconstruction and Development, and the International Development Association, which are owned by 185 member countries. It is a vital source of financial and technical assistance to developing countries around the world.
The bank provides low-interest loans, interest-free credit, and grants to developing countries for education, health, agriculture, environmental protection and infrastructure. Ironically, in light of the allegations against Wolfowitz, the bank also works to promote good governance and reduce corruption in the world.
Traditionally, the president of the bank is a citizen of the U.S - the bank’s biggest shareholder - and serves for five year, renewable, terms. Though nominated by the U.S government, the appointment must be confirmed by the bank’s Board. That said, the U.S normally gets its way in this respect, hence the appointment of Bush hard-liner, Wolfowitz, back in 2005.
The attributes required of a World Bank president are pretty ill-defined. The bank’s website, rather unhelpfully, states that the president is chairman of the bank’s Board and president of its constituent organisations, which is a bit like saying the Prime Minister is head of the UK government – the description doesn’t tell us what the occupant of the post does every day or what makes a good Prime Minister. To the extent that there is any agreement on the qualities needed, the consensus appears to be that the World Bank president should at least be a political and, above all, economic heavyweight with some development experience.
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