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Archive for the ‘nepotism’ Category

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With the reputation of the United States at stake, President Bush readies himself to pick a successor to Paul Wolfowitz. Traditionally, the US has chosen the President of the World Bank while Europeans have chosen the head of the International Monetary Fund. Now, given the scandal at the World Bank, Europeans are suggesting that this practice cease and that Wolfowitz’ successor be chosen on merit and not nationality (a code for crony of Mr. Bush).Given the falling reputation of the United States across Europe due in part to the mishandled war in Iraq and the bungling choices made at the World Bank, perhaps the White House should listen for a change. Consultation is not, however, the strong suit of the Bush White House as an administration that has grown used to having its own way on just about everything until recently.

Paul Wolfowitz

Photo: © Simone D. McCourtie /World Bank

U.S. Treasury Secretary Henry Paulson has said he would help Bush identify a nominee after consulting with other countries. But he made clear it would be an American.

“I see no reason why this should change and I see every reason why it’s important that the World Bank should continue to be run by an American,” Paulson said.

Dutch Development Minister Bert Koenders said the stature of the candidate was more important than nationality.

“The quality of a new candidate is the most important thing. Whatever nationality, American or from another continent, the bank needs a president of the highest quality,” he said.

Henry Paulson makes it absolutely clear that the Bush Administration is not listening to the rest of the world. The fact that he sees no reason to change past policy is an arrogant response in the light of the need for the last Bush choice to resign in disgrace.

I wish I had confidence that Bush will do the right thing in this matter. The fact is that I do not.

clipped from www.reuters.com
WASHINGTON (Reuters) – A day after Paul Wolfowitz resigned as World Bank president under an ethics cloud, the United States faced the tough task of healing rifts with Europeans and satisfying calls that his successor be picked on merit, not just nationality.
Wolfowitz’s resignation on Thursday followed pressure by European opponents who said his handling of a high-paying promotion for his companion damaged the institution’s credibility. Bank staff complained the crisis had undermined their mission of fighting poverty in developing countries.
“It is a very delicate issue but we will make clear to the United States that we need someone credible and this time they need to consult more broadly,” said one senior European bank board official. “That was not the case with Mr. Wolfowitz.”
The United States, the bank’s largest shareholder, has named the World Bank chief since the bank’s inception more than 60 years ago.
Many critics have said that practice should be revamped

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It is about time!

It is also clear from the comments of Tony Fratto and Henry Paulson that the Bush White House continues to exist in a state of denial. While it has been the traditional role of the President of the United States to appoint the President of the World Bank, there is a strong movement to reexamine that practice or, at the very least, curtail the cronyism practiced by this White House.

Reuters included the following international reaction to Wolfowitz’ resignation:

BERNICE ROMERO, ADVOCACY DIRECTOR OF OXFAM INTERNATIONAL

“Wolfowitz’s resignation shows that even the office of the president has to play by the rules. The U.S. and other rich countries must now show that they are serious about good governance by allowing the next head of the Bank to be appointed based on merit through an open, accountable process.”

DANIEL MITTLER, GREENPEACE INTERNATIONAL POLITICAL ADVISOR

“Cronyism has led to Wolfowitz’s downfall, but the credentials needed in the next president to clean up the World Bank must not only be personal integrity, but above all expertise in sustainable development.”

Perhaps the time has come for a fair and transparent process for the selection of the next president of the World Bank. Perhaps the rest of the world will not be governed by the hubris of the Bush White House. We in the United States must only suffer 613 more days of this administration. Good Riddance.

Now Bush only has to deal with the scandals at Justice and the Department of Education, and, oh yes, the potential indictment of his closest adviser, Karl Rove.

clipped from www.reuters.com
WASHINGTON (Reuters) – World Bank President Paul Wolfowitz, under fire for arranging a pay and promotion agreement for his companion, who was employed by the bank, announced on Thursday he will resign effective June 30.
WHITE HOUSE SPOKESMAN TONY FRATTO
“Paul Wolfowitz is a good man who is passionate about the plight of poor people in the world. We would have preferred that he stay at the Bank, but the president reluctantly accepts his decision.”
SEN. CHRISTOPHER DODD, DEMOCRATIC PRESIDENTIAL HOPEFUL
“Mr. Wolfowitz’s actions have impeded the ability of the World Bank to carry out its critical mission of alleviating global poverty. His resignation will help to restore the integrity and credibility of the World Bank, both of which are central to the bank carrying out its mission.”
U.S. TREASURY SECRETARY HENRY PAULSON
I intend to move quickly to help the President identify a nominee to lead the World Bank going forward.

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Wolfowitz “did not accept the bank’s policy on conflict of interest and tried to bypass rules that he believed did not apply to him.”

Paul Wolfowitz engaged in nepotism when he assured that his girlfriend, Shaha Riza was promoted and saw to it that she received a hefty pay increase, one far exceeding the standards set by the World Bank. And what does Wolfowitz (with the aid and comfort of George W. Bush) do? He thumbs his nose at the World Bank.

Wolfowitz called the findings “unbalanced and flawed” and argued that the panel had omitted statements and documents that support his position.

The fact that the United States official position is to continue to offer Wolfowitz continuing support is another sign that the Bush White House is simply out of touch with the realities of the US position vis-a-vis the rest of the world. Bush and Wolfowitz seem to believe that they can play at being the playground bully doing whatever they please.

37 country directors on the front line of the bank’s operations said in a letter to the board and to Wolfowitz that the leadership crisis had damaged the bank’s reputation and effectiveness in fighting poverty.

In refusing to accept responsibility, Wolfowitz displays a profound lack of ethical character. This denial is the height of arrogance in the face of resounding criticism of Wolfowitz’s actions.

The Committee said:The Group finds the submission notable for absence of any acceptance by Mr. Wolfowitz himself of responsibility or blame for the events that transpired.

clipped from www.reuters.com
WASHINGTON (Reuters) – A World Bank committee found bank President Paul Wolfowitz violated ethics rules in his handling of a promotion and generous pay rise for his companion and his involvement represented a conflict of interest.
Wolfowitz rejected the critical report on Monday and the United States showed no sign of yielding in its steadfast support for the former U.S. deputy defense secretary, saying the findings were no grounds to dismiss him.
“Mr. Wolfowitz’s contract requiring that he adhere to the Code of Conduct for board officials and that he avoid any conflict of interest, real or apparent, were violated,” the panel said of Wolfowitz’s handling of a pay and promotion deal for World Bank Middle East expert Shaha Riza in 2005.
The panel said Wolfowitz believes the blame lies with others and not with him.
It said he did not accept the bank’s policy on conflict of interest and tried to bypass rules that he believed did not apply to him.

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