Zoellick welcomed as likely World Bank chief

By John O'Callaghan

WASHINGTON (Reuters) - Robert Zoellick was widely hailed on Wednesday as the U.S. choice to lead the World Bank but the former deputy secretary of state must work quickly to heal rifts from a pay scandal that ousted his predecessor.

"It's not easy to negotiate with him but it's easy to make agreements with him, since he is a professional of the highest caliber and he always keeps his word," Russian Economy Minister German Gref told reporters in Moscow.

The World Bank board is expected to endorse U.S. President George W. Bush's nomination of Zoellick, who was praised for his roles in global trade talks and as Washington's point man on the humanitarian crisis in Darfur and relations with China.

World Trade Organization chief Pascal Lamy, who was the EU trade commissioner when Zoellick was U.S. trade representative, said he "always appreciated his skills as a consensus builder and his capacity to reach out to developing countries."

But some in developing regions, particularly Africa, had hoped for a break from the tradition of Washington picking the head of the World Bank, a poverty-fighting institution.

Critics said this was especially true after Paul Wolfowitz, a senior official in both Bush administrations and an architect of the Iraq war, agreed to step down as president when a bank panel found he broke rules over a pay raise for his companion.

"Why should the chairman of the World Bank always be an American? It's called the World Bank not the Bank of America," said Moroccan entrepreneur Hassan Cherif.

South Africa, current chair of the G20 group of nations, said Zoellick was highly qualified but repeated its position that the selection process was flawed and should be opened up.

CONFIDENCE AND CHANGE

Brazil, with Latin America's largest economy, supported the nomination despite a history of disagreements when Zoellick was the senior U.S. trade official. But Finance Minister Guido Mantega said Brazil still wanted changes in how the leadership of the World Bank and International Monetary Fund is chosen.

"Unfortunately, it wasn't possible to change the process of this selection," Mantega said.

Canadian Finance Minister Jim Flaherty was "delighted with the announcement," saying Zoellick was "very familiar with our G7 issues and with the trading relationship between Canada and the United States."

Germany's Development Minister Heidemarie Wieczorek-Zeul, who had strongly urged Wolfowitz to resign, called Zoellick a "good candidate, who brings a large measure of international experience with him."

"It's important that the World Bank quickly gets a new president and wins back its ability to act," she said.

French Foreign Minister Bernard Kouchner said he hoped Zoellick "will reestablish, or establish, our confidence in the World Bank."