30 October 2006
An article on the front page of the Wall Street Journal today, featuring a quote by BIC's Executive Director, provides a comprehensive account of World Bank President Paul Wolfowitz's continued drive to chart Iraq's future.
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The role played by World Bank President, Paul Wolfowitz, in the reconstruction of Iraq is examined in detail today by Wall Street Journal reporter, Greg Hitt. The article "In World Bank Role, Wolfowitz Keeps Up Battle to Reshape Iraq" maps out the chronology of operational and financial involvement taken by the institution in the war-torn country while highlighting some of the confrontations along the way. In addition, the article attempts to hold Wolfowitz to account for Iraq and remind the world that the World Bank President was previously the lead US intellectual architect for a more muscular approach to the Middle East in general and for the invasion of Iraq in particular.
Noting the departure from standard World Bank practice of waiting for sustained stability in conflict countries before engaging in reconstruction, Hitt acknowledges that former deputy secretary of defense at the Pentagon and one of the chief architects of the Iraq invasion in 2003, Paul Wolfowitz, is drawing strong criticism for his policy on Iraq as current President of the World Bank.
Wolfowitz contends that the World Bank would be a more effective vehicle for reconstruction than the U.S. because it “is viewed as a neutral power, not an occupying force.” However, as the author suggests, with reports that corruption is rampant in Iraq, Wolfowitz may have difficulty advocating for greater involvement in the country.
The thrust of opposition to more involvement in Iraq revolves around the guidelines for World Bank operations. In general, the institution makes it a point not to reengage with countries until heavy fighting has subsided or is at least contained. For example, the World Bank reinitiated operations in East Timor, Liberia and Sierra Leone after order had been restored by peacekeepers. As news reports today note that this month’s casualties in Iraq are the fourth highest of any month since the invasion in 2003, many observers are questioning whether the World Bank is capable of operating in such a dangerous and volatile environment.
Despite the controversy, the World Bank’s Iraq portfolio is growing. Wolfowitz’s uncompromising approach to reengagement with Iraq is pushing financing through at an accelerating pace. The perceived role of politics in the Bank's strategy on Iraq and the high-level appointments made by Wolfowitz have severely undermined the legitimacy and credibility of the institution. While it remains to be seen whether or not the World Bank will be able to contribute positively to Iraq’s reconstruction, Wolfowitz’s ad hoc, and at times blunt, managerial style has left more than just a few disenchanted people in his wake.