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The world seems to welcome Bush's appointment; the bank's executive directors seem ready to grant the new boss a green light. European countries, although a little disappointed that the post has not befallen a European, have already cautiously welcomed Zoellick. Developing countries like Peru, Brazil and India have no reason to oppose the selection, as Zoellick advocated favorable policies toward them in his previous roles as U.S. trade representative, deputy secretary of state and vice chairman of Goldman Sachs.
Zoellick has shown his skill as a successful strategist, especially in patching up relations with developing countries. His "new thinking" approach, and calling China a "stakeholder," has made the Chinese more cooperative on issues of global warming and human rights. He is also particularly sensible in dealing with sensitive issues, has an impressive grasp of facts and figures, and is said to be a demanding boss. This last quality may be one of the reasons for his resignation from the No. 2 position in the State Department. Perhaps there was a conflict with his aggressive boss Condoleezza Rice, although she had praised him as her "alter ego."
However, if ultimately approved as the new World Bank chief, the tasks ahead of the "new man" are not simply regaining trust and rebuilding credibility within the bank and with member nations, as many commentators have suggested. The removal of outgoing bank president Paul Wolfowitz was not simply because of his favoritism toward his girlfriend Shaha Riza, a bank employee for whom he arranged a hefty compensation package that eventually raised a public outcry. Tackling the real issues behind Wolfowitz's ouster will require some fancy footwork from Zoellick.
One test for Zoellick will be his ability to confront corruption at high levels, which was what his predecessor was actually attempting to do. According to World Bank sources, Wolfowitz had been aggressively backing investigations into dishonest practices. For example, he reportedly vetoed loans to India in 2005 after discovering irregular procedures, including bid-rigging and bribery, in an Indian health project. The decision brought strong protests from the project's managers.
A second challenge will be dealing with personnel within the World Bank itself. According to a Wall Street Journal report earlier this month, there is trouble brewing at the bank between Managing Director Graeme Wheeler and Suzanne Rich Folsom, who runs the bank's Department of Institutional Integrity. Folsom, hired by former President Jim Wolfensohn and promoted by Wolfowitz, is responsible for corruption investigations that have apparently raised serious concerns within the bank.
The third challenge will be keeping a balance among loans to developing countries. There is already great debate over the annual US$23 billion the bank allocates in loans. Will Zoellick continue "hugging the panda" and approve loans to China? Will he continue favorable policies toward India, Brazil and Mexico? Critics have argued that none of these countries are the proper recipients for loans intended for poor countries. Zoellick will also have to exercise judgment in approving loans to Africa. Can he make investments work more effectively to support sustainable development and human rights in Africa? To what extent will he be able to iron out income disparities within poverty-stricken states? Can he successfully persuade Western private lenders to continue granting loans to developing countries?
When Zoellick waltzes into the World Bank next month, both fans and critics will be watching to see how this talented dancer performs on a new stage beset with obstacles and challenges.
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(Zhang Quanyi is an associate professor at the Zhejiang Wanli University in Ningbo, China, and a PhD candidate at Shanghai International Studies University, studying policy making and collective identity. He is currently a research fellow at the School of International Studies at Yonsei University in Seoul, Korea, under a grant by the Korea Foundation. He can be contacted at qyzhangupi@yahoo.com. ©Copyright Zhang Quanyi.)
