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Race picks up to head World Bank

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AFP PTI Washington
Last Updated : Jan 21 2013 | 2:31 AM IST

The race to succeed World Bank president Robert Zoellick is heating up with the emergence of the first declared candidate, another American.

Renowned economist Jeffrey Sachs, who led the UN committee on the MDGs, threw his hat in the ring Friday with an oped piece, saying World Bank needs an expert like himself rather than another politician or Wall Street banker.

Sachs's declaration came amid signs the United States is eyeing others for the high-profile job.

"The US signaled that it was looking at the possibility of nominating [Treasury Secretary Timothy] Geithner, [one of his predecessors Larry] Summers, or someone from private sector like [Pimco chief executive] Mohamed El-Erian," said a person close to the World Bank, who spoke on condition of anonymity.

Secretary of State Hillary Clinton also has been widely mentioned in the media as a possibility. Geithner's deputy for international affairs, Lael Brainard, has drawn some attention as well.

With the deadline for nominations three weeks away, the competition "is beginning to pick up speed," the source said.

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One thing seems certain, though: despite a chorus of calls from emerging markets and NGOs for a non-American to lead the lender, in the name of "new normal" global economy, the US, as the biggest stakeholder, is expected to decide the winner.

The World Bank has promised the selection process will be "merit-based and transparent" and open to candidates from its 187 member nations.

But in an unwritten pact since the creation of the World Bank and the International Monetary Fund nearly seven decades ago, the US has always put an American at the helm of the Bank and Europe has ensconced a European as IMF managing director.

But the clamour for an alternative has grown louder.

After Zoellick announced two weeks ago he was stepping down on June 30 at the end of his five-year term, China and Brazil called for a fair, competitive selection process.

Bangladesh prime minister, Sheikh Hasina, has suggested Muhammad Yunus, who won a Nobel for his work in microfinance. On Friday Yunus flatly ruled out taking the job, but the person close to the World Bank suggested that Yunus may still emerge as a candidate.

"But right now it isn't the intention of the Indian director on the board to propose him." An Indian director holds the board seat shared by India and Bangladesh.

The source said Brazil would probably nominate someone, with some speculation focusing on former president Luis Inacio Lula da Silva.

Nancy Birdsall, head of the Center for Global Development, stressed that the selection process "needs to be competitive" and truly open to any candidate.

She has proposed two "top-notch" candidates from large, fast-growing developing countries: Ngozi Okonjo-Iweala of Nigeria and Nandan Nilekania, the Indian co-founder of Infosys.

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First Published: Mar 04 2012 | 5:47 PM IST

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