Wanted: World Bank head

US President Barack Obama nominated Dartmouth College President Jim Yong Kim, an expert on public health as candidate for the World Bank's top post on Friday which marked the deadline to submit candidates. Kim who is of South Korean origin is a former director of the Department of HIV/AIDS at the World Health Organization.

"It's time for a development professional to lead the world's largest development agency," Obama said. "Jim has spent more than two decades working to improve conditions in developing countries around the world."

Nigerian Finance Minister Ngozi Okonjo-Iweala, a former World Bank managing director, also joined the race for the top World Bank job on Friday. Her candidacy is backed by South Africa and Angola, Africa's leading economies. Former Colombian finance minister and central bank chief Jose Antonio Ocampo already announced his candidacy on Wednesday.

But despite the emerging countries' strong candidates, it's highly likely that the candidate nominated by the US will succeed Robert Zoellick. Since the two institutions World Bank and International Monetary Fund (IMF) were founded 70 years ago, it's been considered a set deal that the IMF is headed by a European, whereas the World Bank is led by an American.

The World Bank's 25-member executive board will make its decision at the end of April. Zoellick is stepping down on June 30.

The decision on who leads the World Bank has profound consequences for developing and emerging countries as its main task is to fight poverty. To accomplish that goal, the World Bank gives out credits to its 187 member states and finances development aid projects. In addition to that, the World Bank participates in funding other projects to fight poverty and corruption. It hands out microloans, funds projects to improve education in schools and better health care and assists in reconstruction efforts after natural disasters.

That's why developing and emerging countries with a growing influence no longer approve of a dominating US. But since western countries still account for the majority of the vote, they continue to have the say in the organization.

US candidates hard to come by

The search for a new candidate had been a difficult one for the US government until the very last day, media reports said. Even though the government's selection commission had a dozen names on its list, many potential candidates did not agree to run for the World Bank's chair. US Secretary of State Hillary Clinton, Treasury Secretary Timothy Geithner and former US presidential candidate John Kerry were among those who declined. UN ambassador Susan Rice was said to lack financial experience. Lawrence Summers, Obama's former director of the National Economic Council, was also among the nominees.

US economics professor Jeffrey Sachs had openly campaigned for the position. "There have been 11 World Bank presidents and not one of them yet has been an expert in international development," he said, adding that he could show an extensive success rate in regards to fighting poverty. Several smaller countries such as East Timor, Jordan, Kenya, Namibia and Malaysia backed Sachs who teaches at Columbia University, but had no endorsement from the Obama administration.

After Kim was announced as the official US candidate, Sachs backed out of the race. "Jim Kim is a superb nominee for WB," he tweeted. "I support him 100 percent."

Strong candidates

Even though there's little chance for the emerging countries to push for their own candidates for the World Bank post, they have put forward strong candidates. Colombian Jose Antonio Ocampo is a renowned professor at Columbia University and a previous finance minister in Colombia. He also used to be an advisor to the World Bank, the Inter-American Development Bank (IADB) and the UN's development program.

But while Ocampo agreed to run for the World Bank post, and Brazil was willing to nominate him, Colombia's support for him now looks unlikely. Colombian Finance Minister Juan Carlos Echeverry announced on Thursday that Colombia was focusing on a bid for the presidency of the International Labor Organization instead. This effort had a greater chance of success than going for the World Bank presidency as Colombia already held the top post at the IADB, Echeverry said.

"If it was based on qualification, Ocampo would be very suited," Heribert Dieter, researcher at Berlin-based German Institute for International and Security Affairs. "But announcing the World Bank president is about power. This is why a US-American will be followed by a US-American."

According to Dieter, Ocampo's nomination is "a symbolic act against the power of transatlantic interests."

Nigeria's Ngozi Okonjo-Iweala

On Friday, South African Finance Minister Pravin Gordhan announced the candidacy of Nigeria's Finance Minister Ngozi Okonjo-Iweala. She worked for the World Bank for 20 years, holding the post of World Bank managing director before she resigned in August 2011 in order to run again as finance minister in Nigeria.

"I share the World Bank vision of fighting poverty with passion. The issue is in what direction one must take this to make this the most beneficial," she said.

Iweala fought against corruption and for more transparency in Nigeria's ministries. She built schools, improved access to clean water and to health services for the poor. She substantially reduced Nigeria's debt by signing treaties with international creditors. Her reforms caused a turn in Nigeria's economy.

Whoever ends up at the World Bank's top post - there's a lot of work to be done. "It's irrelevant if the World Bank's president comes from the US, China, India or Brazil," said Claudia Warning who's on the steering committee of the Church Development Service (EED). "All that counts for the poor is if the World Bank manages to improve their living situation. This is where the World Bank needs to reinvent itself."

Author: Insa Wrede / sst (AFP, Reuters, AP)
Editor: Rob Mudge