President Bush confirmed in a press briefing at the White House 16 March that he had nominated Paul Wolfowitz for World Bank President. Bush said that Wolfowitz is a "compassionate decent man, commited to development, and a skilled diplomat". Prior to his current post as deputy secretary of defense, Wolfowitz has held positions with various academic institutions and the US state department.
According to an informal agreement struck at the founding of the Bretton Woods Institutions, the post of World Bank president is in the hands of the US administration, while the IMF Managing Director is traditionally a European. The stitch-up has been widely criticised by governments, civil society, academics and the staff of the institutions themselves.
Bank watchers say that the Wolfowitz announcement came as a surprise to officials in other shareholding countries. European government officials are said to be in urgent meetings to discuss how they will react. When Wolfowitz's name was first put forward several weeks ago, there was widespread conjecture that his candidacy might provoke European opposition. In 2000 the US opposed the German candidate for the head of the IMF, Caio Koch-Weiser; the opposition resulted in his candidacy being revoked, eventually to be replaced by Horst Koehler.
A coalition of UK NGOs is calling on the British government to oppose Wolfowitz. In a letter sent to prime minister Tony Blair, the NGOs said that Wolfowitz was "anathema to the needs of an institution which must act as a voice for the aspirations of all developing countries." The organisations said that it was "hypocritical" that an institution which supposedly supports good governance would continue with the leadership selection stitch-up. Moreover, the appointment "flies in the face of the recommendations of the Africa Commission and the British Government's 2000 White Paper on globalization".
There are widespread concerns that Wolfowitz's unilateralist tendencies will mean that the World Bank becomes a tool of US foreign policy interests. David Waskow of Friends of the Earth International points out that "Wolfowitz has shown nothing but disdain for collaboration with other countries. How's he going to run the World Bank, and to what end?". Long-time Bank watchers are asking whether this move signals the Bush administration's intentions to convert the Bank into a grant-making institution, running down its resources and prestige.
Official UK reaction has been limited to a luke-warm endorsement from foreign secretary Jack Straw. Straw said that Wolfowitz was "very distinguished and experienced internationally", adding that he looked forward to working with him if the appointment is confirmed.