Wednesday, March 16, 2005

Shareholders' Dismay at Lack of Consultation

Financial Times

Surprise, and in some quarters dismay, was a common response in the World Bank's other large shareholder countries to Paul Wolfowitz's nomination.

The lack of consultation before the announcement meant that European governments - who collectively hold about 30 per cent of the votes on the bank's executive board to the US's 17 per cent - were slow to react.

"There are going to be a lot of very unhappy people, but they may be as upset about the process as about the person," said one European official. "They were supposed to consult us and there was no consultation." Jack Straw, the British foreign secretary, said that Mr Wolfowitz was "very distinguished and experienced internationally, and if his appointment is confirmed we look forward to working with him".

But Downing Street added that the UK would wait for discussions within Europe and with the US before making a decision on whether to support the nomination. The German finance ministry declined to discuss the matter.

Privately, European officials in Washington and bank staff have expressed concern that the US would put forward such a controversial candidate for the post. One concern is that his appointment would make it more difficult for the World Bank to operate effectively in the Middle East.

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