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Newsmaker: Robert Zoellick, Nominee to Lead World Bank (2/2)
Mister Wolfowitz resigned last month; his last day is June thirtieth. An investigation found that he violated bank rules in 2005 when he negotiated a pay increase for his girlfriend, a bank employee. He denied any wrongdoing and said bank officials shared responsibility for the dispute. He joined the bank as president in 2005 after serving as deputy secretary of defense.
European nations led efforts to remove Paul Wolfowitz, accusing him of corruption over the pay issue. But they generally did not support a change in the appointment process. Traditionally, the United States has appointed the World Bank chief while Europe has chosen leaders for the International Monetary Fund. The 2 lenders were created in the nineteen forties.
Some countries, however, have criticized the 60-year-old tradition. They say it makes the development lenders into tools of rich nations. Brazil, South Africa and Australia urged the United States to appoint a new bank president using an open process not limited by nationality.
The World Bank is owned by its one hundred 84 member nations. Many development experts and others are calling for reforms in its operations and its lending policies for poor countries. But rebuilding relations and respect could be Robert Zoellick's first job.