Robert Zoellick, former US deputy secretary of state, has emerged as the frontrunner to be the next president of the World Bank.
Senior US administration officials expect a decision on the successor to Paul Wolfowitz, who steps down as bank president on June 30 following an ethics scandal, to be announced this week in Washington.
Despite pressure from some countries for an open selection process, President George W. Bush has insisted that the next World Bank president must be an American, maintaining previous tradition.
Mr Zoellick, 53, a former US trade representative under Mr Bush, has widespread experience of and high-level contacts with Europe, China, Latin America and Africa. He was heavily involved in the peaceful reunification of Germany and played a leading role in efforts to revive the Doha trade round.
US officials cautioned that the final decision on the successor to Mr Wolfowitz had yet to be made. The other candidate was said to be Robert Kimmitt, deputy US Treasury secretary. Officials have insisted the next bank president will be an American chosen by the White House, despite demands from member countries for an open selection process.
Australia has thrown its weight behind demands for a change to the selection process for the presidency of the World Bank. Peter Costello, the Australian treasurer, wants the next head of the Washington-based development aid organisation to be chosen on the basis of an “open, transparent process’’ that will be based on merit and open to candidates from any country, not just the US.
The memo circulated among senior management said: “Someone with a sound reputation as a technician or policy adviser is not sufficient. There has to be a well established track record as a highly skilled manager with strong statesmanship.”
Mr Wolfowitz told the BBC in an interview broadcast on Monday that he was forced to resign because of an “overheated” atmosphere at the bank and press coverage of his role in winning a pay and promotion package for his partner.
Mr Wolfowitz said at the end of an internal inquiry, “finally the board did accept that I acted in good faith and acted ethically”. His lawyer demanded a statement from the bank’s board that he acted in good faith as a condition of his departure. “I accept the fact that by the time we got around to that, emotions here were so overheated that I don’t think I could have accomplished what I wanted to accomplish for the people I really care about,” he added.
Mr Wolfowitz made a broad call for the bank to view poverty in Africa as its most important challenge.
A report due to be issued by the bank on Tuesday underlines its shifting role. It shows a steady increase in private sector investment in emerging markets in recent years, but not to the poorest countries, mainly in Africa.
Net private capital flows to developing countries reached a record $647bn (£326bn) – 5.8 per cent of their gross domestic product and almost double the level reached during the last boom before the 1997 Asian financial crisis.
Three-quarters of the capital flows to developing countries last year were equity investments worth about $419bn, including a wave of cross-border acquisitions.
