Tuesday, December 12, 2006

Wolfowitz in firing line as World Bank faces mass exodus

WORLD Bank president Paul Wolfowitz faces mounting criticism from directors of the international lending organisation who say he relies on political advisers with little expertise in development while driving away seasoned managers.

Half of the bank's 29 highest-level executives have left since Mr Wolfowitz, the former US deputy defence secretary and an architect of President George Bush's invasion of Iraq, took office in June last year. Among them is Christiaan Poortman, vice-president for the Middle East and a 30-year veteran, who left in September after resisting pressure to speed up lending and adding staff in Iraq.

"It was very sad to see someone of Mr Poortman's calibre leaving," Eckhard Deutscher, one of 24 executive directors who oversee the management of the lender, said. "The bank needs to be very careful not to lose too much of its human capital."

The exodus is damaging the poverty-fighting institution, which provided $US23.6 billion ($A30 billion) last year for projects such as schools and clinics, say directors and observers.

Three directors, who spoke on condition of anonymity, said they were concerned governments might be less willing to contribute because of unhappiness with Mr Wolfowitz.

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