Bush to Name Zoellick to Lead World Bank

Then-Deputy Secretary of State Robert Zoellick announces his resignation at the State Department in Washington, in this June 19, 2006 file photo. A senior administration official says President Bush has chosen Zoellick, to lead the World Bank.(AP Photo/Evan Vucci) (Evan Vucci - AP)

WASHINGTON -- Robert Zoellick, a nimble negotiator who has crisscrossed the globe as President Bush's trade chief and as the country's No. 2 diplomat, is the White House's choice to be the next World Bank president. Bush will announce the decision on Wednesday, according to a senior administration official.

He would succeed Paul Wolfowitz, who is stepping down June 30 after findings by a special bank panel that he broke bank rules when he arranged a hefty compensation package in 2005 for his girlfriend, Shaha Riza, a bank employee.

The controversy led to calls from Europeans, the bank's staff, aid groups, Democratic politicians and others for Wolfowitz to resign from the poverty-fighting institution.

A seasoned veteran of politics both inside the Beltway and on the international stage, Zoellick, 53, has a knack for mastering intricate subject matter and translating it into policies. He is known for pulling facts and figures off the top of his head. He also has a reputation for being a demanding boss.

Bush's selection of Zoellick must be approved by the World Bank's 24-member board.

The White House expects Zoellick to gain the board's acceptance. The senior official, who spoke on condition of anonymity in advance of Bush's announcement, said so far other nations have had a positive reaction.

The bank's executive directors, in a statement late Tuesday that made no mention of Zoellick by name, said it is essential the next president have a proven track record of leadership, experience managing a large international organization, a willingness to tackle governance reform and political objectivity and independence. While it had been informed that the United States will be nominating a candidate, the board also noted that nominations may be made by any executive director.

Zoellick announced last June that he was leaving his post as deputy secretary of state to join a Wall Street firm and work to develop investment markets around the world.

At the time, Secretary of State Condoleezza Rice said Zoellick had served as her "alter ego" in the department. He was widely believed to be have been interested in getting a promotion and becoming Treasury Secretary. But that job went to Goldman Sachs chief Henry Paulson.

If ultimately approved as World Bank chief, Zoellick will need to regain trust, rebuild credibility and mend frayed relations inside the institution as well as with its member countries around the world.

All of those things are critical for the bank's new leader, who will have to persuade countries to contribute close to $30 billion over the next few years to fund a centerpiece bank program that provides interest-free loans to the poorest countries.

"The test of Zoellick is whether he manages to turn around the bank, which has been in huge disarray," said Elizabeth Stuart, senior policy adviser for Oxfam International, a group involved in helping the world's poor.