26 April 2007
Some of the latest news and musings about embattled World Bank President Paul Wolfowitz
There has been no shortage of coverage of the trials of Paul Wolfowitz over the past weeks. Following is an attempt to distill some of the most interesting arguments that have emerged in recent days.
The European Union passed a nonbinding resolution urging Germany (current EU president) and the US to call on Wolfowitz to step down today. German Chancellor Angela Merkel will meet with President Bush later this month.
A number of notable Bank and government officials have spoken out about the President, and whether he should be digging in his heels or packing his bags. Some of the newest public (and private) comments:
Chair of the US House Financial Services Committee Barney Frank said in an interview this week: "If he stays, I think we will pay a high price: the impeachment of American judgment", William McQuillen of Bloomberg News reports. Frank further suggested that the process for selecting the World Bank President, which is effectively controlled by the United States, needs revision.
Patrick Leahy, the Chair of the Foreign Operations Subcommittee, also commented that "president has a different view of what he has confidence in than I do" to Bloomberg.
Although Frank joins a handful of other US politicians speaking out about Wolfowitz, the White House and US Treasury remain in Wolfowitz's corner. The same Bloomberg article quotes US Treasury Secretary Henry Paulson as reinforcing his "high regard" for Wolfowitz in an interview yesterday.
Some interesting comments came from Graeme Wheeler, one of the Bank's two Managing Directors, last week. In a closed meeting with senior Bank management and the president, Wheeler reportedly called the debate over whether Wolfowitz should stay or go "the biggest crisis in its [the Bank's] history." See Steven Weisman's April 25 New York Times article for more details.
Brief interjection from an anonymous critic: is the Wolfowitz crisis really the biggest scandal in the Bank's history? What about, say, the debate over whether the institution's programs have actually reduced poverty? Another conversation perhaps. But at the very least, let's remember that the current crisis is emblammatic of much deeper governance and transparency challenges facing the institution...
Finally, Tim Cullen, former World Bank spokesperson, also chimed in with some colorful commentary in an April 25 letter to the Financial Times. It is only a matter of time before Wolfowitz steps down, Cullen writes. And his successor must adhere to the following advice: "Creating a strong new management team will be a priority. First to go must be Mr Wolfowitz's principal aide who practised the "Roach Motel" school of management (the documents check in to the president's office but they don't check out) which has stifled policy initiatives and stalled loans. His personal propagandist must also pay the wages of spin. More difficult is what to do about his vice-presidential and other senior appointees whose qualifications were inappropriate. Also some of the talented people at the bank who have been forced out need to be brought back." See BIC's Wolfowitz Watch webpage for an overview of senior management departures and additions since Wolfowitz took office.
So what's going on with the actual investigation into the Wolfowitz scandal? The Board committee investigating the situation (COGAM) reportedly asked Wolfowitz to appear before them today. They rejected his request for more time to prepare, as well as his lawyer Robert Bennet's request to make a presentation on his behalf. Apparently private attorneys are prevented from defending World Bank employees in situations of potential misconduct, William McQuillen continues.
Finally, Wolfowitz himself spoke out through an email to World Bank staff yesterday, in which he asked the staff for patience while the Board investigates the situation...