A senior U.S. official, speaking on conditions of anonymity, said yesterday that Robert Zoellick, a former U.S. Trade Representative, has been chosen to succeed Paul Wolfowitz at the World Bank. He further added that President Bush is likely to announce his choice on Wednesday.
Robert Zoellick will step into the shoes of Paul Wolfowitz, who will vacate office on June 30. Wolfowitz had announced his decision to retire after he had been pronounced guilty of breaking bank’s rules by a special World Bank panel. He was castigated for arranging a hefty pay compensation for Shaha Riza, his companion at the bank.
The announcement, if made officially, would amount to a continuation of the old practice at the WB viz. naming of the World Bank President by the American administration. Wolfowitz’s controversial tenure had led to a call from various quarters, demanding a scrap down of this ancient practice.
Several countries around the world had called for making the criteria, for selection of the WB chief, more comprehensive. As a part of an informal arrangement, the Americans nominate WB President, while Europe has a right to name the top man at the IMF. President Bush had earlier stated that he would like to continue with this practice.
U.S. Treasury Secretary Henry Paulson, who had been designated the task of finding a suitable replacement, has received ‘positive reactions‘ from other countries to the name of Zoellick, the administration official added. Robert Zoellick, 53, would serve a term of five years, depending upon an approval by the Bank’s 24-member board.
Credentials
Robert Zoellick, possesses the right sort of image to head the organization which is beset with some serious issues. He fits the profile of someone who is not viewed as being too much of an ideological person. Wolfowitz’s appointment was opposed in 2005 because he was seen as the chief architect of Iraq war. Zoellick, despite being a member in the American administration for long, has mostly steered away from such controversies.
He is known to be a deft negotiator and has been at the forefront of trade and development issues around the world. He initially served in Bush Sr.’s regime, working in close unison with then-Secretary of State James Balker on strategies concerning the end of the Cold War. Under Bush Jr. he worked as the U.S. Trade Representative from 2001 to 2005. He played a key role in bringing China to WTO and forged free trade deals with several developing nations like Singapore, Chile and Australia.
Thereafter, he was appointed as the deputy secretary of state, under Codoleezza Rice. He excelled in that role and Rice often referred to him as her ‘alter ego.’ Zoellick was the U.S. strong voice on China policy and Darfur. He is believed to have been in contention for the World Bank post in 2005, but was ignored in favor of Paul Wolfowitz.
Robert Zoellick quit his post in June of last year to join the investment firm Goldman Sachs. He is currently its vice-chairman.
He has got a tough assignment ahead of him if his selection is ultimately approved. Regaining trust of the Bank’s employees and rebuilding bank’s credibility are expectedly tougher after Wolfowitz’s controversial reign. Also, he must build on Wolfowitz’s anti-corruption campaign and strengthen it. Bank’s relations with its member countries, too, need some serious mending. Emerging economic powers like India and China must be brought on board to improve the efficacy of the World Bank.
All in all a difficult proposition ahead, I’d say.
