World Bank President Zoellick to leave in June

By Frank Fuhrig Feb 15, 2012, 16:06 GMT

Washington - World Bank President Robert Zoellick said Wednesday that he will leave the international development lender when his five-year term expires in June.

A former US trade representative and deputy secretary of state under President George W Bush, Zoellick headed the World Bank during a period that saw developing countries coping with the first global recession since World War II, as well as price spikes for oil, food and other vital commodities.

'I'm honoured to have led such a world class institution with so many talented and exceptional people,' he said. 'Together we have focused on supporting developing countries to navigate crises and adjust to global economic shifts.'

He said the World Bank was 'strong, healthy and well positioned for new challenges, and so it is a natural time for me to move on and support new leadership.'

A group of aid organizations and development activists called for the new World Bank chief to be selected in an open, merit-based process.

A coalition including Oxfam, Eurodad and the African Forum and Network on Debt and Development (Afrodad) called Wednesday for the United States to renounce its monopoly on the post of World Bank president.

The World Bank post has always gone to a US nominee, while the chief of the International Monetary Fund has come from Europe, throughout the history of the Washington-based sister agencies, which were founded following World War II.

Christine Lagarde, formerly French finance minister, was appointed IMF managing director last year, after an unprecedented challenge from Mexican central bank chief Agustin Carstens for the leadership of the international crisis lender. The United States supported Lagarde, while major developing and emerging countries, which have gained voting shares in the two agencies in recent years in recognition of their growing economic influence, were split.

'The way the World Bank picks its president needs to change,' Elizabeth Stuart of Oxfam said. 'The Bank only operates in developing countries, so any candidate not supported by a majority of these countries would plainly lack legitimacy.'

Jeroen Kwakkenbos of Eurodad said that the World Bank post should not be decided by 'a behind-the-scenes carve-up.'

Afrodad's Collins Magalasi said: 'It's a World Bank, not a US bank. It needs the best candidate to get the job with support of wide bank membership, not just the US.'

Treasury Secretary Tim Geithner encouraged the World Bank's board to conduct 'an open and expeditious process,' and said that the US would offer a nominee for the presidential post.

'It is very important that we continue to have strong, effective leadership of this important institution, and in the coming weeks we plan to put forward a candidate with the experience and requisite qualities to take this institution forward,' he said.

Geithner pointed out that the US 'continues its leadership role in the World Bank as its largest shareholder and the largest donor to ... the World Bank's facility for the poorest countries.'

He praised Zoellick as 'a remarkably effective leader of the World Bank at a critically important time in the world economy.' Geithner said that the agency 'has made vital contributions to the global response to the financial crisis, improving food security and strengthening post-conflict and transition countries.'

He said that Zoellick's leadership has helped make the agency 'a more effective, accountable, and transparent institution.'

Bloomberg News cited unnamed sources as saying Secretary of State Hillary Clinton and economist Lawrence Summers, a former adviser to President Barack Obama, as World Bank candidates.

A State Department spokeswoman said that Clinton was not interested in the post.

A White House spokesman said that no decisions had been made about a US nominee to succeed Zoellick.