CAFOD urges World Bank reform after Wolfowitz resignation

CAFOD has welcomed the resignation of Paul Wolfowitz today and urged the rich donor nations to use this opportunity to reform the way in which the head of the World Bank is appointed. "Paul Wolfowitz's tenure at the World Bank and the recent scandal raises questions as to whether he was the right man for the job of fighting poverty in developing countries," CAFOD head of Policy George Gelber, said. Aid agencies have long advocated that both the head of the World Bank and the International Monetary Fund should be appointed on the basis of merit and as a result of an open and public appointment process. "It is remarkable that in the 21st Century, these key appointments are made on the basis of nods and winks from the United States and Europe respectively. "The resignation of Mr Wolfowitz as President of the World Bank is an opportunity for this 50 year old gentlemen's agreement to be replaced by a democratic and transparent leadership selection process based on merit," Mr Gelber added. World Bank reform needs to go further, CAFOD says. Votes on the Bank's Board of Directors lie disproportionately in the hands of the rich nations. It is effectively a creditors' cartel. This must change to give developing and transition countries a greater voice, in light of their rights, population and growing influence in the world today.