Bush Selects New Head of World Bank Ex-Trade Envoy Picked As Head of World Bank

May 30, 07:53 AM

Current Headlines: By STEVEN R. WEISMAN

By STEVEN R. WEISMAN

The New York Times

WASHINGTON - President Bush has chosen Robert Zoellick, a senior diplomat and trade envoy who became a top Goldman Sachs executive last year, to lead the World Bank and try to heal the rifts left by the ouster of Paul Wolfowitz, the administration said Tuesday.

Treasury Secretary Henry Paulson said Zoellick had emerged as the first choice of economic ministers around the world, who have been calling for someone to overcome the bank's credibility problems among donor and recipient countries alike.

"Bob has a very strong track record working with colleagues and leaders to get results," Paulson said after word of the appointment spread. "He's got great energy and enthusiasm and will be able to hit the ground running. "

Zoellick's selection is to be officially announced by Bush today. Zoellick plans to visit the bank and meet with its staff almost immediately, administration officials said, and the bank's 24- member board of directors is to vote on the nomination soon afterward.

He faces an institution not only riven by the travails of Wolfowitz, who resigned earlier this month amid charges of favoritism, but also by major disagreements among donor nations over its future mission.

Many conservative supporters of the Bush administration, resentful over Wolfowitz's resignation, are demanding that the United States keep the pressure up at the bank to carry out reforms that Wolfowitz began, such as combating corruption and demanding concrete results in its aid programs.

The bank lends about $23 billion a year to poor countries and is the principal vehicle for grants and loans to the poorest among them. But the bank also is facing challenges in raising $30 billion over the next three years to renew its lending for the poorest countries. Many rich countries had balked at new lending while Wolfowitz remained in charge.

Bank officials say Zoellick's first job will be to raise money for the poorest countries and reshape its lending for "middle income" poor countries such as India and China, which have gained access on their own to capital because of their recent record of economic growth.

There also are several issues relating to Wolfowitz's leadership, including whether to retain several top officials he elevated.

Zoellick served for six years in the current Bush administration, as U.S. trade representative from 2001 to 2005 and then as deputy secretary of state until last July. Under Presidents Reagan and George H.W. Bush, he held top posts at the Treasury and State d epartments. He has built a broad network of admirers and allies around the world during his years in the government.

(c) 2007 Virginian - Pilot. Provided by ProQuest Information and Learning. All rights Reserved.