Washington Veteran Gets Nod for World Bank Post

In an attempt to mend bridges with the international community, the White House today nominated a respected veteran diplomat to replace Paul Wolfowitz as head of the World Bank.

The Bush administration - bruised by the fallout after the former Pentagon deputy was forced to step down after granting pay rises to his girlfriend - has turned to Robert Zoellick, an experienced Washington insider who served as Condoleezza Rice's number two at the state department and played a key role in the reunification of Germany in 1990.

Sources within the World Bank said the announcement follows careful negotiations by the US Treasury secretary, Hank Paulson, with major governments, including Britain and Germany, in which Mr Zoellick's name was mentioned as the top choice.

"It certainly could be worse. He's a solid appointment - he's not a former architect of the Iraq war," said Ken Rogoff, a former chief economist for the International Monetary Fund and a professor at Harvard University.

White House officials said that president Bush intends to formally announce Mr Zoellick's nomination tomorrow, and are confident he will be endorsed by the bank's board of directors.

Gene Sperling, an economist in the Clinton administration and a senior fellow at the Council of Foreign Relations, said Mr Zoellick was a "very smart and very serious" operator.

"He's been seen as the one person in the Bush administration who is a true internationalist and that probably put him in favor with many of the key G8 partners that the administration wanted to get on board," Mr Sperling said.

The selection of Mr Zoellick maintains the US prerogative of choosing an American for the post - which has come under fire following the disastrous tenure of Mr Wolfowitz. Aid agencies and some governments argue that the appointment process should be open to other nationalities and conducted transparently.

The US has selected the head of the World Bank since the institution was founded 60 years ago, while European governments have chosen the head of its sister organization, the IMF.

Nancy Birdsall, president of the Center for Global Development, while praising Mr Zoellick's analytical skills and experience, said: "The question is whether other countries will be satisfied that he is indeed the best candidate, for example, whether he has the right management skills."

The new president faces enormous challenges in healing the wounds within the bank after Mr Wolfowitz's controversial reign, which provoked a staff revolt, as well as overhauling the bank's role.

"What the bank urgently needs is to reorganize itself, from making loans to giving out grants. The very idea of being a bank is a total anachronism in today's world of liquid financial markets," said Prof Rogoff.

Described by former colleagues as a policy wonk with sharp elbows, Mr Zoellick's background means he is familiar with the rigors of international diplomacy.

In 2001, president Bush appointed Mr Zoellick to the post of US trade representative, which saw him negotiate the launch of the World Trade Organization's Doha round of trade talks.

He was seriously considered by the administration to fill the World Bank job in 2005, but was pipped at the last minute by Mr Wolfowitz, and went on to be deputy secretary of state until abruptly departing last year to join the investment bank, Goldman Sachs.

Earlier, Mr Zoellick had been a protege of James Baker, a long-time confidant of the Bush family. Mr Zoellick helped run two presidential election campaigns and served in the administration of George Bush Sr.

During that time, he represented the US at the international talks on the future of a united Germany after the fall of the Berlin wall, and is credited with persuading the elder Bush to encourage reunification.