[A-List] Wolfie's replacement

["Michael Keaney" <michael011@xxxxxxxxxxx>]

Wolfowitz steps down on 30 June. Guess who is without a job on that day?
MK


Wolfowitz steps down as World Bank president
By Krishna Guha and Eoin Callan in Washington
Financial Times: May 18 2007

Paul Wolfowitz announced his resignation as president of the World Bank
on Thursday night, ending a turbulent two-year tenure as chief of the
world?s leading development institution.

In a statement, Mr Wolfowitz said: ?It is in the best interests of those
whom this institution serves for that mission to be carried forward
under new leadership.? His resignation will be effective June 30.

Mr Wolfowitz?s departure in good health is unprecedented in the history
of the World Bank and marks what may be an enduring shift in the balance
of power at the institution, which has hitherto been dominated by the US
and the president it nominates.

His resignation followed the publication on Monday of a devastating
report into his handling of a secondment package for Shaha Riza, a bank
official with whom he was romantically involved.

After a last-ditch diplomatic effort to save Mr Wolfowitz?s job, the US
administration yielded to pressure from European and other shareholder
governments that insisted he could not continue in his post. But the US
insisted that the board exonerate him of the ethics charges first.

After several days of haggling, in which the UK acted as an
intermediary, board representatives reluctantly agreed to accept Mr
Wolfowitz?s assurance that he acted ?ethically and in good faith in what
he thought were the best interests of the institution.?

The board said ?at the same time it is clear from this material a number
of mistakes were made by a number of individuals in handling the matter
under consideration, and that the bank?s systems did not prove robust to
the strain.?

It endorsed the report?s call for a review of the governance framework
of the bank.

The board paid tribute to Mr Wolfwitz?s service at the bank, noting
?much has been achieved in the last two years.? It added: ?It is
regrettable that these achievements have been overshadowed by recent
events.?

Mr Wolfowitz said: ?I am pleased that after reviewing all the evidence
the executive directors of the World Bank group have accepted my
assurance that I acted ethically and in good faith.?

He promised that the next head of the World Bank would have his full
support.

One person close to the board said: ?It was obvious what the deal was.
He would go but we had to accept his assurance that he acted in good
faith.?

?Read what we said carefully,? the board insider added.

Some members of the bank?s staff were outraged by what they saw as a
?whitewash? of Mr Wolfowitz. One bank insider said: ?It is terrible ?
but I guess that was the price to pay to get him out.?

Tony Fratto, White House spokesman, said Mr Wolfowitz was a ?good man
who is passionate about the plight of poor people.?

He said: ?We would have preferred that he stay at the bank.? Mr Fratto
said President George W Bush will nominate a successor to Mr Wolfowitz
?soon?.

Staff members ? some of whom have agitated for Mr Wolfowitz?s removal ?
expressed alarm at the prospect of him remaining in post until June 30.
They said it would be a recipe for continued internal strife at the
bank.

The board is set to reconvene on Friday to discuss arrangements for the
period to June 30, with many directors determined to ensure that
responsibility for the operations of the bank is effectively transferred
to another bank official during the period that Mr Wolfowitz remains
formally in office.

****

Why Bush should back Blair as World Bank chief
By Edward Mortimer
Financial Times: May 14 2007

Paul Wolfowitz's tenure aspresident of the World Bank is effectively
over. This may be unfair, but life is sometimes unfair. His situation
recalls that of Ruud Lubbers, the former Dutch prime minister who
resigned two years ago as the United Nations high commissioner for
refugees after being accused by an employee of sexual harassment.

The accusation could probably not have been proved in a court but,
combined with other allegations and Mr Lubbers' own clumsy reaction, it
became a massive distraction from the agency's work to help refugees. It
created an atmosphere in which he could no longer provide effective
leadership.

That is precisely the situation that prevails at the World Bank as a
result of Mr Wolfowitz's clumsy handling of a potential conflict of
interest. His friends, including President George W. Bush, should
persuade him to stand down before more damage is done.

So far, in public anyway, the US leader has stood by his man. But his
own prestige is hardly high enough - either at home or abroad - to allow
him to remain associated much longer with the discredited leader of an
important world institution. The tradition whereby other nations allow
the bank to be headed by an American, nominated by the US president, is
clearly in danger. Indeed, it has been reported this week that European
governments are now telling Mr Bush they will accept another American in
the post only if Mr Wolfowitz is soon replaced by a more credible
candidate. It would be surprising if Condoleezza Rice, the US secretary
of state, and other trusted counsellors are not advising Mr Bush to
accept this offer.

I have an alternative suggestion for him. He should propose a European
candidate for the job - namely Tony Blair. The outgoing British prime
minister, who is stepping down next month after 10 years in office, is
still at the height of his powers and is a familiar figure on the world
stage. He has also proved, far beyond the call of duty, his affection
for the US and his loyalty as an ally.

For many people - not least in his own country - that loyalty counts
against him. Many who objected toMr Wolfowitz's appointment as
inappropriate, because of his involvement in advocating and planning the
Iraq war, might see giving the job toMr Blair as a repetition of the
same mistake.

Yet I suspect this objection would not be pressed hard. Before he went
to the bank, Mr Wolfowitz was not well-known for any strong interest in
economic development or the welfare of the world's poor. Mr Blair is.

Under his leadership, the UK has steadily increased the share of its
gross domestic product devoted to foreign aid; and he has been a strong
and consistent advocate of more and better international aid to Africa.
In 2000 he sent British troops to support the elected government of
Sierra Leone; in 2004 he appointed a high-level international commission
to take a broad look at Africa's problems and suggest new solutions; and
in 2005, during Britain's presidency of the Group of Eight leading
industrial nations, he took the lead in securing new pledges of
development aid - especially to Africa.

So far, only the UK has lived up to those pledges. But last month,
together with Angela Merkel, the Germanchancellor and current G8
president, Mr Blair formed another international commission, headed by
Kofi Annan, the former UN secretary-general, to monitor donor
commitments and the promises of reform made by African governments. As
president of the World Bank, Mr Blair would be well-placed to continue
this role.

Giving him a major international position would also be good for Britain
and, in particular, for Gordon Brown, his likely successor as prime
minister. It is never easy to govern the country with a larger-than-life
predecessor sitting behind you, as John Major found in the 1990s after
succeeding Margaret Thatcher.

Finally, by making this imaginative proposal, Mr Bush would do something
to redeem his own international reputation and take the wind from the
sails of his European critics. He would be breaking with a bad
tradition, according to which leading international officials are chosen
for their nationality, and inaugurating a better one, in which skill,
experience and personal commitment to the institution's mission would
count for more.

The writer is senior vice-president and chief programme officer of the
Salzburg Seminar. He was formerly director of communications in the
office of the UN secretary-general under Kofi Annan. The views expressed
here are his own


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