Bush aide needs to dispel negative image for World Bank position

MOST banks pride themselves on their security, although few go as far as hiring one of the US president's top defence advisors to run the show.

But the World Bank, which will soon be headed by US deputy secretary of defence Paul Wolfowitz, is no ordinary bank.

It thinks of itself instead as a specialist agency, bringing the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) under one roof to improve living standards in developing countries and fight poverty.

It provides loans and financial advice to help poorer countries put basic services in place. Some 245 projects benefited from World Bank programmes last year, receiving $20 billion (€15bn) in funding.

The bank is made up of 184 countries, including Ireland.

It employs more than 10,000 people, with offices in more than 100 countries. More than 60,000 World Bank-aided projects are under way at any one time.

Mr Wolfowitz brings an interesting CV to his new employer and is certainly an expert in countries that need reconstruction. As number two to Donald Rumsfeld, he was a key influence in the Bush administration in the run-up to the invasion of Iraq in 2003 and the earlier military action in Afghanistan.

Like many working for the current president, Mr Wolfowitz earned his stripes in the time of the first President Bush, when he worked as a top-ranking advisor on defence policy for Dick Cheney, who was defence secretary at the time.

His team handled the American strategy for the United Nations-approved war with Iraq in 1991, a massive operation that involved raising over $50bn from several countries.

But he also held senior positions under President Reagan, including a spell as US ambassador to Indonesia, a highly sought-after job among US diplomats given the Asian state's significance as emerging economic giant.

His non-government jobs included lecturer in international relations and security strategy at three of America's finest academic institutions Yale, Johns Hopkins University and the National War College.

The shift from warmonger to charity dispenser is not as far-fetched as it may seem.

Although America's overseas strategies have been widely criticised as imperialist and built on aggression, the country has also developed a sophisticated network of foreign relationships behind the scenes and, in many cases, under the counter.

Nothing kills a revolution like prosperity. As countries who have nothing also have nothing to lose, they pose a greater threat to US interests if they feel left behind. But wise use of grant aid and other financial assistance makes it less likely that the hand that feeds will get bitten.

With Mr Wolfowitz calling the shots when it comes to dispensing World Bank support, those in the queue will see merit in scoring points the American way.

The appointment may provoke controversy in many countries, especially those who were angered by Mr Wolfowitz's stance on Iraq, but is expected to be ratified when it goes before the body's governing board.

Mr Wolfowitz will replace James Wolfensohn, who had a background in investment banking but who sharpened the bank's focus on funding primary education, basic health services, AIDS awareness and support and environmental initiatives.

Mr Wolfowitz's last job has shown he can use the stick. His next post will allow him to demonstrate his handiwork with the carrot.