Transcripts

President Bush Makes His Pick For The Head of the World Bank

PAUL KANGAS: President Bush opened a new chapter for the World Bank today. Mr. Bush named former Deputy Secretary of State Robert Zoellick to replace Paul Wolfowitz as World Bank president. Wolfowitz stepped down amid a firestorm of criticism over how he handled a promotion for his girlfriend. As Stephanie Dhue reports, experts say that gives Zoellick a challenging start in his new job.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: President Bush's choice to head the World Bank, Robert Zoellick, has a tough task ahead. Under Paul Wolfowitz, the bank staff staged an open revolt, Europeans called for his resignation and the bank's ability to fight global poverty was questioned. Zoellick acknowledges the problems.

ROBERT ZOELLICK, NOMINEE, WORLD BANK PRESIDENT: The World Bank has passed through a difficult time for all involved. There are frustrations, anxieties and tensions about the past that could inhibit the future. This is understandable, but not without remedy. We need to put yesterday's discord behind us and to focus on the future together. I believe that the World Bank's best days are still to come.

DHUE: Zoellick served in the Bush administration as deputy secretary of state and U.S. trade representative. He's now a vice chairman at Goldman Sachs. He has a reputation as a demanding boss, but also for building consensus. Charlene Barshefsky was the U.S. trade rep in the Clinton administration. She says Zoellick needs to demonstrate his independence to effectively lead the bank.

CHARLENE BARSHEFSKY, SENIOR INTERNATIONAL PARTNER, WILMER, HALE: His first task will be to gain confidence and to set a baseline of action and activity within the bank that is consistent with a non- ideological pursuit of the bank's historic objectives.

DHUE: One of the key objectives for the World Bank now is to raise $20 billion to replenish its lending program for the poorest nations. Harvard economics Professor Kenneth Rogoff says Zoellick's biggest challenge will be persuading countries to donate money.

KENNETH ROGOFF, ECONOMICS PROFESSOR, HARVARD UNIVERSITY: There's so much hostility to the bank in the wake of the Wolfowitz debacle that it's going to be harder and he's very good at that. I think he's a good negotiator. He's the right person for that, but it is not going to be easy.

DHUE: Zoellick's nomination must still be approved by the World Bank's board. Wolfowitz's resignation is effective at the end of June. The board says it will make its decision before then. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.