Paul Wolfowitz left the Bush Administration in 2005, as a high ranking 
official in the Pentagon and architects ot the Iraq war, to take over 
leadership of the World Bank.  Wolfowitz leadership role with the World 
Bank didn't work out, either.  It will be interesting to see who 
President Bush selects to become the new head of the World Bank, or even 
if President Bush's nomination will be consider or approved.  From 
reading the article, it seem to me the US has lost a lot of clout with 
the rest of the world over the past 6 years.

#------------------------------------------


  Ending Battle, Wolfowitz Resigns From World Bank

By Peter S. Goodman 
<http://projects.washingtonpost.com/staff/email/peter+s.+goodman/>
Washington Post Staff Writer
Friday, May 18, 2007; Page A01

World Bank President Paul D. Wolfowitz 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Paul+Wolfowitz?tid=informline>
 
resigned yesterday, effective June 30, yielding to demands from 
governments around the world that he leave to end the ethics controversy 
that has consumed the institution.

Wolfowitz's resignation, negotiated in recent days with the bank's 
executive board, closed the leadership crisis that has essentially 
paralyzed the institution for almost two months. It preempted what had 
been a growing likelihood that the board would reprimand or fire him 
after a committee report found that he broke ethics rules in awarding a 
substantial raise to his girlfriend.

Wolfowitz and his attorney, Robert S. Bennett 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Robert+S.+Bennett?tid=informline>,
 
extracted a measure of the exoneration they had demanded before he would 
resign. In a statement released last night, the board conceded that "a 
number of mistakes were made by a number of individuals in handling the 
matter under consideration," and the bank would need to improve its 
ethical procedures. The board declared that Wolfowitz "assured us that 
he acted ethically and in good faith in what he believed were the best 
interests of the institution, and we accept that."

The statement added: "We are grateful to Mr. Wolfowitz for his service 
at the bank. Much has been achieved in the last two years."

That language was agreed upon only after fractious debate among board 
members, with some, particularly European representatives, dismayed that 
it appeared to hand Wolfowitz a victory. In the end, however, they 
swallowed the language as the price of getting Wolfowitz to quit.

Wolfowitz has argued that he sought to resolve an obvious conflict of 
interest by transferring his longtime companion, Shaha Riza 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Shaha+Riza?tid=informline>,
 
to another job at the State Department 
<http://www.washingtonpost.com/wp-srv/related-topics.html/U.S.+Department+of+State?tid=informline>
 
so that he could avoid supervising her, while increasing her pay as 
compensation for the career disruption.

Staff members described a celebratory mood inside the World Bank 
<http://www.washingtonpost.com/wp-srv/related-topics.html/The+World+Bank+Group?tid=informline>'s
 
headquarters near the White House 
<http://www.washingtonpost.com/wp-srv/related-topics.html/The+White+House?tid=informline>,
 
with people embracing, singing songs and hoisting flutes of Champagne.

The ethics scandal that ultimately brought down Wolfowitz was merely the 
latest in a long list of his infractions in the eyes of many staff 
members, who accused Wolfowitz of insulating himself behind tyrannical 
aides, disregarding the counsel of veteran bank officers and running the 
bank as an adjunct of the Bush administration.

The news that Wolfowitz was leaving, however, did not fully heal the 
international rifts that have emerged with the leadership crisis. His 
exit set off a new struggle to determine who will run the bank between 
now and his official departure date at the end of June.

According to bank and Bush administration sources briefed on the 
negotiations, the White House on Wednesday demanded that Wolfowitz be 
allowed to stay for three months, fearing that otherwise an acting 
president would be put in place from within the bank. That could 
threaten the traditional American prerogative to select the head of the 
institution.

"They don't want to lose control," a bank official said.

Most of the board, and particularly the Europeans, wanted Wolfowitz to 
leave immediately, asserting that he has lost the trust of the staff. 
The administration ultimately settled for a compromise, the June 30 
departure date, fearing that otherwise a caretaker president might be 
inserted by the board over American wishes.

In rushing to secure Wolfowitz's resignation by last night, the board 
deferred the nettlesome question of what happens in the interim, a 
subject it plans to take up today.

Under a tradition dating to the creation of the World Bank in the 1940s, 
the U.S. 
<http://www.washingtonpost.com/wp-srv/related-topics.html/United+States?tid=informline>
 
president nominates its head, even though that rule is contained nowhere 
in the bank's governing statutes. Under the same unwritten agreement, 
Europe 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Europe?tid=informline>
 
gets to pick the head of the bank's affiliate institution, the 
International Monetary Fund 
<http://www.washingtonpost.com/wp-srv/related-topics.html/International+Monetary+Fund?tid=informline>.
 
For years, reformers have questioned this system, asserting that the 
heads of such important global institutions should be selected on merit. 
Many academics and pressure groups are demanding that the end of 
Wolfowitz mark the beginning of a new selection procedure.

With its chosen head of the bank forced out by an ethics scandal, the 
Bush administration moved yesterday to reassert the traditional U.S. 
role, with Treasury Secretary Henry M. Paulson 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Henry+M.+Paulson?tid=informline>
 
Jr. declaring he would "move quickly to help the president identify a 
nominee to lead the World Bank going forward."

But several senior bank officials said last night that the institution 
requires an acting president until a new president is in place, 
dismissing out of hand the suggestion that Wolfowitz could continue to 
come to work as usual.

"He will be treated like a leper," said an official, who requested 
anonymity so as to speak candidly. "No one, certainly not heads of 
agencies, are going to want to meet with him. He instantly becomes 
irrelevant to the bank from this point on."

A bank official briefed by board members said the board would today 
issue a second statement asserting that Wolfowitz is immediately barred 
from making personnel and policy decisions, assuaging the fears of some 
that he might otherwise fire those who have rallied against him. But in 
a nod to the interests of the Bush administration, the board will assert 
that Wolfowitz is to stay on officially in his post and will not go on 
administrative leave, as many staff members had hoped.

In recent weeks, as the investigating committee heard testimony from 
bank officials, as staff openly campaigned for his ouster, and as 
political leaders from Berlin 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Berlin?tid=informline>
 
to Johannesburg 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Johannesburg?tid=informline>
 
called for his exit, Wolfowitz resolutely insisted he would stay. He 
dismissed the movement against him as a "smear campaign."

This week, with the release of a scathing investigating committee report 
and a strident chorus of calls for his departure, it became clear that 
Wolfowitz was fighting a battle that could not be won.

European governments were inclined strongly against a decisive vote to 
fire him, which would have risked an open conflict with the Bush 
administration. Wolfowitz and his lawyer understood that and factored it 
into their strategy, at one point on Wednesday daring the board to vote 
to oust him. That gambit appears to have helped secure the exonerating 
language.

Until this week, the White House had been resolute in supporting 
Wolfowitz, who was a primary architect of the Iraq 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Iraq?tid=informline> 
war at the Pentagon 
<http://www.washingtonpost.com/wp-srv/related-topics.html/The+Pentagon?tid=informline>
 
before President Bush 
<http://www.washingtonpost.com/wp-srv/related-topics.html/George+W.+Bush?tid=informline>
 
appointed him to head the World Bank in 2005.

Administration officials, in particular Vice President Cheney 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Dick+Cheney?tid=informline>,
 
saw the campaign to oust him as a European power play fueled by bitter 
feelings about Iraq, and as a broader proxy battle against American 
influence, senior administration officials said.

But as Paulson tried in vain this week to persuade fellow finance 
ministers to support Wolfowitz, the White House came to recognize that 
he could not be saved.

"I regret that it's come to this," Bush said yesterday morning at a news 
conference with outgoing British Prime Minister Tony Blair 
<http://www.washingtonpost.com/wp-srv/related-topics.html/Tony+Blair?tid=informline>.
 
"I believe all parties in this matter have acted in good faith."

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/17/AR2007051700216.html?referrer=email

or

http://tinyurl.com/2ne42f

#------------------------------------------

Regards,

LelandJ


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