The White House moved last night to mend fences with the international community when it indicated it would nominate a respected veteran diplomat, Robert Zoellick, to replace Paul Wolfowitz as head of the World Bank. The Bush administration turned to Mr Zoellick, an experienced Washington insider who served as Condoleezza Rice's number two at the state department and played a key role in the reunification of Germany in 1990.Sources in the World Bank said the announcement followed careful negotiations by the US treasury secretary, Hank Paulson, with leading governments, including Britain and Germany, in which Mr Zoellick's name was mentioned as the top choice. "It certainly could be worse. He's a solid appointment - he's not a former architect of the Iraq war," said Ken Rogoff, a former chief economist at the International Monetary Fund and a professor at Harvard University.
| Pity, I'd like an architect of the Iraq War running the World Bank. |
Mr Zoellick's nomination maintains the US prerogative of choosing an American for the post. Aid agencies and some governments argue that the appointment process should be open to other nationalities and conducted transparently. The US has selected the head of the World Bank since the institution was founded 60 years ago, while European governments have chosen the head of its sister organisation, the International Monetary Fund.
| That balance will continue; we're certainly not going to give up the World Bank if the Euros remain in charge of the IMF. |
Nancy Birdsall, president of the Centre for Global Development, while praising Mr Zoellick's analytical skills and experience, said: "The question is whether other countries will be satisfied that he is indeed the best candidate, for example, whether he has the right management skills."
| If they don't like it they can apply for loans elsewhere. |
Robert Zoellick may hail from the conservative wing of US Republican party but, unlike his predecessor, Paul Wolfowitz, he has a formidable record in financial and economic governance. After a spell at the treasury and a stint as economics undersecretary of state in the 1980s, he returned to a more senior role in 2001 as George Bush's first trade representative, the chief US trade negotiator. During his four years in the job, he helped launched the Doha round of world trade talks and negotiations to bring China and Taiwan into the WTO. He moved to the state department before leaving government for Goldman Sachs and a job as managing director.