World Bank President: My Lords, this is not a joke.

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My Lords, this is not a joke. Besides being a fascinating insight into the workings of the wonderfully quirky British House of Lords, this transcript shows that Baroness Royall of Blaisdon, Lord Hamilton of Epsom, and Lord Lea of Crondall are all terribly vexed over the selection of the next World Bank president.

We're a little concerned that the Lords do not realise that there is in fact no reference to the US 'right' to appoint the president in the Bank's Articles of Agreement - perhaps our Honourable Lords need to be more regularly reading worldbankpresident.org?

World Bank: Presidency
2.59 pm
Lord Dykes asked Her Majesty’s Government:

What steps they will take to propose a nomination for the presidency of the World Bank.

22 May 2007 : Column 571

Baroness Royall of Blaisdon: My Lords, Her Majesty's Government will work with other member countries of the World Bank to identify and select the best candidate for the job.

Lord Dykes: My Lords, with the world appetite for neocons somewhat limited at the moment, to say the least, that might rule out Mr Tony Blair. Will the Minister reassure us that the Government will work carefully with leading countries and others overtime to secure someone who will give real priorityto third-world interests and internal management modernisation of the World Bank?

Baroness Royall of Blaisdon: My Lords, the Government believe that the next president must be appointed on merit and should have a strong commitment to development. He or she must be a proven manager. As noble Lords may know, wemade it clear in our White Paper on international development last year that the practice of picking the heads of the World Bank and IMF based on nationality should end and that they should be chosen on merit.

Lord Bilimoria: My Lords, the United States has been the major backer of the World Bank by far and it is today. Many other countries are in a position to back and fund the World Bank but do not. The reality is that the United States will have a huge influence on the appointment, but does that excuse the complete secrecy that shrouds the process? Will the Government assure us that they will press for a removal of this non-transparency, which affects the underdeveloped world?

Baroness Royall of Blaisdon: My Lords, the Government wholeheartedly agree that the process must become much more transparent and be reformed. However, reform must be agreed to by all the parties concerned. Reaching that agreement takes time, and the reform takes time to be embedded.

Baroness Rawlings: My Lords, Paul Wolfowitz has led the fight against government corruption through bypassing corrupt Administrations. Such a campaign can be successful only if it is maintained over a long period. Will the Government assure the House that they will put pressure on the new president of the bank to continue this stance?

Baroness Royall of Blaisdon: My Lords, the Government will put pressure on whoever is appointed to continue to work against corruption and in favour of good governance. That is our objective.

Lord Lea of Crondall: My Lords, I accept that under the present procedure the appointment of the president of the World Bank is in the gift of the president of the United States and that that cannot be changed overnight, but will Her Majesty's Government, following the principles of their White Paper, press the
United States president to agree as part of any deal that this will be the last time that the president is appointed on that basis?

Baroness Royall of Blaisdon: My Lords, discussions are taking place with the United States Government. I am sure that among the items being discussed will be the proposal that, next time, there should certainly be a change. It is interesting to note that senior US officials such as Treasury Secretary Hank Paulson have said that they want a wide-ranging and open consultation process, so I think that things are moving.

Lord Hamilton of Epsom: My Lords, does the Minister accept that the Prime Minister on his retirement is completely ruled out of being president of the World Bank because the money is not good enough?

Baroness Royall of Blaisdon: My Lords, that is a little below the belt.

Noble Lords: Oh!

Baroness Royall of Blaisdon: My Lords, the president may well—that was a slip of the tongue. My right honourable friend the Prime Minister may not be in line for appointment because he is not an American citizen. I do not know where the rumours pertaining to the Prime Minister and the World Bank have come from. I think that it is just a coincidence of timing.

Baroness Northover: My Lords, the Prime Minister’s name has come up in this context, and the EU is a larger contributor to the World Bank than is America. However, would it not be a bit rich if he were nominated, given the Government’s track record on BAE Systems and Saudi Arabia and, in particular, the current police investigation into cash for honours?

Baroness Royall of Blaisdon: My Lords, that is not worthy of an Answer.

Lord Foulkes of Cumnock: My Lords, will the Minister confirm that one person who is absolutely certain not to be put forward either as being eligible for, or for being any good as, president of the World Bank would be Sir Ming Campbell?

Baroness Royall of Blaisdon: My Lords, I could not possibly comment.

Baroness Rawlings: My Lords, do the Government want to change the charter so that the presidentneed not be a US citizen? The charter states that hemust be.

Baroness Royall of Blaisdon: My Lords, I realise that that is in the current charter, but perhaps it needs to be amended as part of reform. I am sure that that is one of the many questions to be addressed. All the multinational institutions were born in 1944, a long time ago. They all have to be reformed to address the problems of the 21st century.

Jeff Powell ~ May 23, 2007

"Keep track of the rumored candidates, power plays and buzz."
The Washington Post

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