31 May 2007
The White House’s announcement that it will nominate former US Trade Representative Robert Zoellick to be the next World Bank President, and the widespread assumption that the choice is a fait accompli, serve as a reminder that the lessons of the Wolfowitz scandal have yet to be learned. Read BIC's May 31 Press Release on the Zoellick nomination.
FOR IMMEDIATE RELEASE
May 31, 2007
Contact: Karen Showalter 202-624-0632
The White House’s announcement that it will nominate former US Trade Representative Robert Zoellick to be the next World Bank President, and the widespread assumption that the choice is a fait accompli, serve as a reminder that the lessons of the Wolfowitz scandal have yet to be learned.
Last month’s revelations of secrecy, nepotism, and patronage at the highest levels in the Bank exposed the need for a fundamental overhaul of the Bank’s governance structure, beginning with greater openness in the presidential selection process and transparency in Board operations. In this time of political crisis, how the Bank’s member countries go about replacing Wolfowitz will be an important litmus test of their will to practice what they preach.
“The Wolfowitz scandal presents an opportunity to initiate meaningful reforms starting with an open, democratic and merit-based process for choosing the next president," stated BIC’s acting Executive Director, Bruce Jenkins. “The shareholders’ rush to put the scandal behind them without instituting the most basic reforms clearly shows the intractability of the governance failures at the institution. If not now, then when?”
“The public must not accept a candidate hand-picked by the United States,” Jenkins added. “There should be no question that a global institution must be open and democratic, from its leadership on down.”
The anachronistic arrangement whereby the US unilaterally appoints the head of the Bank and Western Europe chooses the leader of the IMF must be abandoned. Even the Boards of the Bank and Fund tacitly admitted the flaws in their leadership selection processes by convening special committees in 2001 to devise procedures for open, competitive processes based on merit, not national origin. But the US and Europeans have jealously guarded their naming privileges, ignoring all calls for reform.
“Now is the time for governments to put forward alternate candidates for the post,” said Jenkins. “If other countries allow the US nomination to go ahead unchallenged, they will be complicit in the continued poor governance of the institution.”
A statement released Wednesday by the World Bank’s Board of Directors indicates there is still time for other countries to name their candidates for the job, since a final decision will not be taken until the end of the month. However, only a handful of countries, including Brazil, Australia and South Africa, have publicly called for a more open process, and none have yet proposed candidates.
While some groups have raised concerns about Zoellick's track record and management abilities, a discussion of his qualifications should not take place until there is genuine competition for the job.
"Rather than enter into a debate about the relative merits of the lone horse in the running, we should reject the one-horse race entirely," said Jenkins.