Government urged to reject US World Bank pick

The proposed appointment of US hawk Paul Wolfowitz as head of the World Bank should be opposed by the Government, Green co-leader Rod Donald said yesterday.

America's Deputy Defence Secretary was one the architects of the invasion of Iraq and his nomination by President George W Bush has caused international concern.

New Zealand is a shareholder in the World Bank and represents the interests of 13 other Pacific Island nations at the institution.

Mr Wolfowitz met shareholders including New Zealand last week to explain his views on development and poverty reduction, the bank's key missions.

By tradition the US has always nominated the president of the World Bank.

A spokeswoman for Labour Finance Minister Michael Cullen, who is responsible for the World Bank, said New Zealand was consulting Pacific nations.

New Zealand's stance will be discussed at a Cabinet meeting on Tuesday. But Mr Donald said the decision for New Zealand was an "easy" one.

"He is very unsuitable for the job, his track record on Iraq and Indonesia is appalling," Mr Donald said.

Mr Wolfowitz was the US ambassador to Indonesia during the military-backed government of former President Suharto from 1986 to 1989.

Mr Donald said Mr Wolfowitz had supported Suharto despite atrocities and the corruption committed in his reign. Before taking the ambassadorship, Mr Wolfowitz served as assistant secretary of state for East Asian and Pacific affairs.

Among his responsibilities was New Zealand at the time of its anti-nuclear stand-off with the US.

"His implacable opposition to our anti-nuclear policy is a much lesser reason to oppose his nomination than ... the fact Mr Wolfowitz will always put US foreign policy and the interests of American corporations ahead of the needs of poor people and developing countries," Mr Donald said.

Many European countries initially voiced concern at the nomination, but after phone calls from President Bush and Mr Wolfowitz some have dropped their opposition.

Dr Cullen's spokeswoman said he would not be commenting on the issue ahead of Tuesday's Cabinet meeting.

Mr Donald said no matter what other countries did, New Zealand should "show some spine" and oppose the nomination on principle.

As president of the 184-member bank, Mr Wolfowitz will have to report to the bank's board, which is comprised of 24 members, including Japan, China, New Zealand and Australia.

Some have argued Mr Wolfowitz would be a good person to shake up a bureaucracy riddled institution with 10,000 staff that many believe wastes money and has lost its way.

- NZPA