Meet the New Vulcan/Same as the Old Vulcan?

Well, it is mixed reviews on Robert "Bob" Zoellick who was named by President Bush to replace the soon-to-be-departed Paul Wolfowitz. As expected, President Bush picked a person who has his trust.

According to James Baker who has worked closely with Zoellick, "He's an outstanding choice. What he brings to the bank is an ability to get things done, an ability to work with people and an excellent reputation among foreign policy types across the world ... something we badly need," Baker acknowledged that Zoellick does not have extensive development experience, but said he was a pragmatist who "knows how to build coalitions and achieve consensus" -- crucial at a large bureaucratic organization like the World Bank.

Barney Franks, chairman of the House of Representatives Financial Services Committee said "The second, high-ranking George W. Bush administration foreign policy, national security official in a row, I think is a mistake."

According to Reuters:

Zoellick was one of 18 mostly conservative figures, including former Defense Secretary Donald Rumsfeld and Wolfowitz, who wrote a much publicized letter to former President Bill Clinton in 1998 advocating removing Saddam Hussein from power in Iraq.

Soon after that he was chosen as a member of the "Vulcans" -- [The Vulcans included Richard Armitage, Robert Blackwill, Stephen Hadley, Richard Perle, Dov Zakheim, Robert Zoellick and Paul Wolfowitz], mostly from President Bush's father's administration -- brought together under Rice to advise candidate George W. Bush on foreign policy before his 2000 presidential election.

Bush made the final decision on Zoellick over the weekend, said the senior U.S. official. Asked whether the World Bank board would approve of Zoellick, the official said, "We have every confidence in that."

Update May 31: See this Alternet article for more on th Vulcanic Zoellick.

Leach Possible Replacement For Wolfowitz?

Jim Leach who served honorably, if not always in the interests of less fortunate people, is one of a short list of names being circulated for a replacement for soon-to-be former President of the World Bank, Paul Wolfowitz. Former Congressman Leach would certainly be a welcome departure from Wolfowitz. However, given the track record of this administration, it wouldn't surprise me for John Bolton or Harriet Meiers to be appointed.

All kidding aside, I can't help but wonder if having a president of this bank who actually had a grasp on the needs of developing nations wouldn't be a better strategy than simply appointing another sycophant of Bush (which, by the way, is why I don't think Jim Leach will get the job). There are some good choices in that realm and if I had my way, this would be my short list based on their understanding of the issues surrounding world poverty.

1) Helene D. Gayle, President and Chief Executive Officer of CARE
2) Charles MacCormack, President and CEO, Save the Children
3) Kofi Annan, Former U.N. Director
4) Bill Clinton

Bank Foreclosure:Wolfowitz to Leave at the End of June

CNN just reported that "Embattled World Bank President Paul Wolfowitz will leave office June 30 amid a controversy over his handling of a pay package for his girlfriend, a bank employee, the institution's board of directors announced Thursday."

President Bush on Thursday sounded as if he was resigned to the fact that Wolfowitz's tenure was coming to an end. Bush applauded Wolfowitz for having made sure the bank "focused on things that matter -- human suffering, the human condition." He added, "I respect him a lot and, as I say, I regret that it's come to this right now."

I concur, no one has focused on human suffering like Paul Wolfowitz.

World Bank Closing Wolfowitz Account

According to Reuters

"The World Bank's board is negotiating details of Paul Wolfowitz's exit as bank president, board sources said on Wednesday following pressure by European countries over his handling of a promotion for his companion.

"They have resumed the meeting and are finalizing a deal," one of the board sources told Reuters after an adjournment of a board meeting earlier at the request of the United States.

The board sources from developed and developing countries said details of a package, including financial compensation, were being discussed with Wolfowitz's lawyer.

Under a contract he signed in 2005 when became World Bank president, Wolfowitz would receive a year's salary, which would be around $375,000, if his service was terminated by the board or if he resigned."

It isn't clear, at this time, whether his significant other will be leaving the bank as well.

US Finds Wolfie a Tough Sell

According to Reuters

The United States failed to win the support of key allies in the Group of Seven over World Bank President Paul Wolfowitz's leadership, with only Japan standing by Washington, a bank board source said on Tuesday.

"Japan was aligned with the United States, but others, including Canada, were against Wolfowitz continuing," the European source told Reuters, following a conference call of G7 officials. The G7 comprises the United States, Japan, Canada, Italy, France, Germany and Britain.

Wolfogate: Where's George Tenet When You Need Him?

Paul Wolfowitz blamed bad intelligence for his breaking World Bank rules in his role that led to awarding his very significant other, Shaha Riza a compensation package through highly unethical means.

According to the AP

Wolfowitz said, "It is highly unfair and unwarranted to now find that I engaged in a conflict of interest because I relied on the advice of the ethics committee as best I understood it."

The special panel acknowledged that the informal advice provided by the bank's ethics committee "was not a model of clarity."

But it also said that Wolfowitz's involvement in the details of Riza's salary "went beyond the informal advice" given by the ethics committee and that he "engaged in a de facto conflict of interest."

Wolfie's Friends at Treasury Break the Bank

From The Financial Times

The World Bank board has bowed to pressure from the US Treasury to give Paul Wolfowitz more time to respond to findings that he broke the bank’s ethics rules, in a move directors hope will satisfy US concerns about due process.

In a statement issued late on Wednesday, the board said the bank president would have until close of business on Friday to make “final comments” on the draft findings of a panel that investigated his role in awarding a pay and promotion package to his girlfriend, Shaha Riza.

The panel will consider these comments, then complete its report and present it to the full board, probably on Monday. The statement said Mr Wolfowitz would also have the opportunity to appear in person before the board on Tuesday “to communicate his views in person, if he wishes to do so”.

The bank issued a three-page chronology of the work of the special panel in a bid to defend the process underway and show transparency following attacks by Mr Wolfowitz’s lawyer, Robert Bennett.

The Bush administration is expected to use the extra days to test whether it can muster enough support to save the bank president ahead of what is likely to be a decisive board meeting next Wednesday.

Pressure on the Bush administration from Congress intensified as leading Democratic senators urged President George W. Bush in a letter not to force a US vs Europe vote at the board.

“We do not believe the bank’s mission or US interests would be advanced by such a vote,” said the letter signed by Senate Majority Leader Harry Reid, and Charles Schumer, Richard Durbin and Patty Murray.

More

Wolfie Looking For the Exit?

From the Financial Register

World Bank directors, in a step towards ousting President Paul Wolfowitz, ruled that he broke ethics rules in arranging a pay raise for his companion, according to a bank official.

The panel stopped short of saying Wolfowitz acted in bad faith and gave him until May 9 to respond. The group also faulted the bank’s ethics committee for giving him insufficient guidance on how to avoid a conflict of interest, and doesn’t suggest a punishment, said a person who read the report. The findings will next be considered by the bank’s full 24-member board, where opposition to Wolfowitz’s continued tenure is hardening, said two officials who asked not to be identified.

Wolfowitz must now choose whether to fight on, negotiate a face-saving deal or allow himself to be pushed out by his critics.

``What he’s probably angling for is an honorable way out,’’ said George Ayittey, an economist at American University in Washington and a former World Bank consultant. ``Right now, even if the board were to clear him, there is so much rancor at the World Bank that it is literally impossible for him to be an effective leader.’’

From Reuters without a hint of irony...

"We believe that the World Bank can continue to be an effective development institution with Paul Wolfowitz as president," White House spokesman Tony Fratto said.

Kellems: Not Taking One For the Team

From the BBC

Kevin Kellems said an ongoing scandal surrounding his boss made it difficult for him to remain effective in his role at the Washington-based institution.

Mr Wolfowitz has been mired in a controversy involving his handling of a pay package for his girlfriend.

Mr Kellems, who had also worked with Mr Wolfowitz at the Pentagon, is expected to leave his post next week.

"Given the current environment surrounding the leadership of the World Bank, it is very difficult to be effective in helping to advance the mission of the institution," Mr Kellems said.

"I have tremendous respect and admiration for the Bank staff and management," he added.
Mr Kellems' departure comes at a crucial point in the investigation into whether Mr Wolfowitz acted properly over the authorisation of his girlfriend's promotion and pay increase in 2005.

The lingering controversy over the potential conflict of interest involving Shaha Riza, who is on the payroll of the World Bank, has prompted a growing chorus of voices calling for his resignation.

Critics argue the scandal is damaging the credibility of the global lender, amid a recently launched anti-corruption campaign.

"Wolf" At or Out the Door?

From BBC: Wolfowitz to face Bank directors

Oxfam is the latest body to call for Mr Wolfowitz's resignation Embattled World Bank President Paul Wolfowitz is to fight for his job in front of a panel of bank directors.

Mr Wolfowitz will defend himself against accusations that he pushed through a huge pay package for his girlfriend without the Bank's consent. The committee will then report to the Bank's 24 representatives, who will decide on the president's fate.

Mr Wolfowitz has apologised for his actions, vowing to stay on to complete what he called "important work". But a growing army of voices, including his own colleagues and the European Parliament, are calling for Mr Wolfowitz' resignation amid escalating concern the scandal embroiling the former Pentagon number two is damaging the credibility of the global lender.

Reuters adds

World Bank President Paul Wolfowitz said on Monday he would not resign in the "face of a plainly bogus charge of conflict of interest" against him over a promotion he directed for his girlfriend at the bank.

In a statement to a special bank panel looking into whether the former deputy U.S. defense secretary abused ethical and other rules by approving the promotion, Wolfowitz said he was a victim of a "smear campaign" to oust him.

"I do not believe that doing so would serve the interests of the world's poor who are suppose to be the first concern of us all," Wolfowitz said.

Endangered Wolf(owitz) and Rudderless Hulks

The BBC Reports

A group of senior former World Bank employees has urged beleaguered head Paul Wolfowitz to resign, saying he can no longer be an effective leader.

Mr Wolfowitz is battling to remain in his job after admitting helping his partner win a promotion and pay rise.

More than 40 World Bank officials, including 18 former vice-presidents, published their call in an open letter to the Financial Times newspaper.

They said Mr Wolfowitz had "lost the trust and respect of bank staff".

"There is only one way for Wolfowitz to further the mission of the bank: he should resign."

"He has [...] damaged his own credibility on good governance - his flagship issue," the letter reads.

The letter was signed by, among others, the former number two in the organisation during the first year of Mr Wolfowitz's time at the Bank, Shengman Zhang.

The former senior officials warn that if Mr Wolfowitz remains in office, he will "preside over a rudderless hulk".

More

Speaking of "rudderless hulks", President Bush's surge strategy was dealt another blow over the weekend:

Violence has continued with three suicide bombers killing at least 27 people and wounding nearly 60 in various parts of Iraq, including one close to where [new US ambassador to Iraq] Mr.[Ryan] Crocker was speaking. "The road is going to be a tough one," Crocker said. "I don't begin my tour here with any illusions. It is going to be very, very difficult, but I certainly believe that success is possible. Otherwise, I wouldn't be standing here." Crocker said the months ahead will be "critical."

Speaking of "critical", Russian Defense Minister Anatoly Serdyukov on Monday criticized a U.S. plan to deploy a missile defense system in central Europe, the Itar-Tass news agency reported.

"We consider that the U.S. strategic missile defense system is a destabilizing factor that may considerably affect regional and global security," Serdyukov said after talks with his U.S. counterpart Robert Gates, who arrived here earlier on Monday for a visit.

The United States plans to deploy a missile defense radar in the Czech Republic and 10 interceptor missiles in Poland. The 3.5-billion-U.S. dollar project is set to start operating by 2011.

Russia has rejected the plan, alleging its real target will not be Iran as Washington has claimed, but Moscow.

The United States is offering Russia a new package of incentives to drop its strong opposition to American missile defense sites in Poland and the Czech Republic, including an invitation to begin linking some American and Russian antimissile systems, the New York Times reported on Saturday.

Wolfie Staying the Course

In a path very well known to Neo-Con detractors, Paul "Master of His Domain" Wolfowitz is not planning on leaving the World Bank, choosing to stay the course. By convention, the Bank President has always been a US citizen, while the Managing Director of the IMF has been a European. Although nominated by the US Government, the World Bank President is subject to confirmation by the Board of Directors. The President serves a term of five years, which may be renewed.

They are looking for an inspection panel member though--unrelated to Wolfie's poor judgment, one suspects.

According to the Beeb

Mr Wolfowitz has been under growing pressure to resign

The embattled World Bank President, Paul Wolfowitz, has indicated he does not plan to resign over a pay scandal.

Mr Wolfowitz told a news conference: "This is important work and I intend to continue it."

He has been under pressure to quit after admitting helping his partner win a promotion and pay rise.

He spoke after World Bank governments described the scandal as a matter of "great concern" but stopped short of asking him to step down.