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Monday, April 16, 2007

 

World Bank policy committeeto hear from embattled Wolfowitz

By Nathaniel Harrison

WASHINGTON: Embattled World Bank President Paul Wolfowitz, under fire for his role in the promotion of his girlfriend, was to join a policy meeting Sunday in what could be one of his last official acts as bank chief.

Facing calls for his resignation, Wolfowitz was also scheduled to appear at a press conference following the twice-yearly session of the bank’s policy-setting Development Committee, representing the lender’s 185 members.

After a tempestuous two-year tenure at the Washington-based development body, Wolfowitz is now under siege from bank staffers and advocacy groups who want him to go.

He stands accused of helping arrange a hefty pay hike for his partner, former World Bank communications specialist Shaha Riza, when she was transferred to the US State Department in 2005.

Wolfowitz, a former US defense department deputy and architect of the Iraq War, has admitted to—and apologized for—mistakes in the procedure under which the pay package was approved.

He has said he will abide by a decision on his fate that is to be taken by the bank’s 24-member executive board.

British development minister Hilary Benn said Saturday that the pay scandal had done “damage” to the bank and should never have occurred.

“While this whole business has damaged the bank and should not have happened, we should respect the board process,” he said in a statement as he prepared to take part in weekend talks at both the bank and the International Monetary Fund.

“This weekend ought to be about the bank’s contribution to fighting poverty and I am looking forward to discussing how we can increase aid, tackle climate change, and get clean water to the 1 billion human beings who don’t have any,” Benn said.

The controversy swirling around Wol­fowitz threatens to undermine his high-profile campaign to stamp out corruption in countries receiving World Bank loans, an initiative that had drawn sharp criticism even before the allegations of favo­ritism emerged.

Wolfowitz last month hailed unanimous support from national representatives on the bank executive board for the campaign, which has had to be repeatedly watered down in the face of virulent opposition.

But the criticism has not gone away and was likely to be aired again by policy­makers on Sunday.

“How can the World Bank talk about governance when its president broke international legality with the Iraq war?” Mexican officials asked during a consultation process late last year, according to documents posted on the bank website.

That consultation was commissioned after a September meeting of the bank and IMF, in Singapore, when major European powers such as Britain lined up with developing nations to assail Wolfowitz’s strategy as misguided.

In going after graft, the World Bank risked jeopardizing its development work among some of the planet’s most needy people, they argued.

Another area currently of deep concern to policy planners is the future of the International Development Association (IDA)—the World Bank’s lending arm for the poorest countries—as it seeks to replenish its coffers to help fund debt-relief promises.

Officials from the World Bank and developed and developing nations met in Paris in early March to boost IDA resources. 
--AFP

   
 

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