Pressure Mounts on Wolfowitz To Resign

By Deborah Haynes

LONDON (Reuters) - A group of top former World Bank executives has urged Paul Wolfowitz to resign, as the bank's watchdog warned his actions were undermining the ability of the institution to carry out development work.

The 42 senior executives wrote a letter to the Financial Times, published on Monday, advising Wolfowitz to give up the presidency for the good of the bank following a controversy over the promotion of his girlfriend.

"We believe that he can no longer be an effective leader," said the letter, which was signed by former World Bank No. 2 under Wolfowitz Shengman Zhang, amongst others.

"He has lost the trust and respect of bank staff at all levels, provoked a rift among senior managers, developed tense relations with the board, damaged his own credibility on good governance -- his flagship issue -- and alienated some key shareholders at a time when their support is essential for a successful replenishment of the resources needed to help the poorest countries, especially in Africa."

The letter concluded: "There is only one way for Wolfowitz to further the mission of the bank: he should resign."

Upping the pressure on Wolfowitz, a former deputy defense secretary who helped plan the U.S.-led invasion of Iraq, the Independent Evaluation Group (IEG) issued a critical statement that was carried on the FT's Web site.

The newspaper said the "formal statement" would be considered by the World Bank's board this week. Continued...


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