World Bank backs US diplomat as new leader (Roundup)

By Tony Czuczka Jun 25, 2007, 22:11 GMT

Washington - Robert Zoellick, a former top US diplomat and trade negotiator, was confirmed as World Bank president Monday after Paul Wolfowitz resigned in the face of an ethics uproar that provoked international divisions.

US President George W Bush's nominee won unanimous backing from the bank's executive board to take over the anti-poverty agency on July 1 for a five-year term, a board statement said.

Zoellick, a Goldman Sachs executive, was the only candidate to head the 185-nation lender after two rocky years under Wolfowitz, who fell over a promotion he arranged for his girlfriend, a World Bank employee.

'He will be an aggressive advocate for overcoming poverty, investing in growth, and creating opportunity and hope,' US Treasury Secretary Henry Paulson said of Zoellick in a statement.

Zoellick, a former number two at the US State Department, expressed respect for the bank's mission and its staff, saying Monday he was eager to learn and would seek to 'refocus our energies on the vital work ahead.'

'The bank's board, staff and many stakeholders know we face large challenges,' he said in a statement. 'We should approach them with a humility gained through years of experience.'

Key donor nations and the World Bank's 10,000 employees worldwide are looking to Zoellick to rebuild morale and a sense of direction at the bank, which lends some 23 billion dollars a year for projects.

He has already talked about the need to adapt the 185-nation bank's mission to changes in the developing world, though he gave no details in Monday's statement.

The bank's board cited his 'strong leadership and managerial qualities as well as a proven track record in international affairs and the drive required to enhance the credibility and effectiveness of the bank.'

Zoellick, who left his post as US deputy secretary of state for a job on Wall Street in 2006, impressed board members at a four-hour private meeting last week.

A veteran diplomat with a reputation for strategic thinking and an impatient streak, he was presented by Bush last month as a 'committed internationalist.'

Zoellick is committed to the goal of helping struggling nations fight poverty, promote economic growth and strengthen the accountability of their leaders, Bush said in a statement Monday.

Zoellick served as chief US trade negotiator during Bush's first term, helping launch the Doha Round of world trade talks in the wake of the September 11, 2001 attacks.

One of his first tests as World Bank head will be to raise a proposed 26 billion dollars from donor countries for World Bank loans to the poorest nations in 2008-2011, a boost of 8 billion dollars from the last three-year cycle.

Africa is sure to remain a major focus, and Zoellick has hinted at a greater role for the World Bank in world trade talks. He intends to fight corruption, but is expected to show a lighter touch than his predecessor.

Wolfowitz made the anti-graft drive a hallmark of his shortened tenure, raising eyebrows when the bank cut off loans and contracts to several member countries it deemed corrupt.

The US is the World Bank's biggest contributor and has traditionally named its president. In return, a European heads the International Monetary Fund.

An internal ethics investigation and intense European-led pressure forced Wolfowitz to quit last month after weeks of resistance, though he denies wrongdoing.

Wolfowitz faced opposition from the start, arriving at the bank after planning the US-led invasion of Iraq as deputy defence secretary. Critics accused him of pursuing the Bush administration's agenda, in part by expanding the World Bank's role in Iraq.

Germany, one of Wolfowitz's main foes, was among the first to congratulate Zoellick.

'He has all the requirements to handle this demanding, high- responsibility task successfully,' Development Aid Minister Heidemarie Wieczorek-Zeul said in a statement. She urged him to focus on fighting poverty and climate change.