Paul Wolfowitz has resigned as President of the World Bank, bringing to a close a scandal that has engulfed the institution for weeks. Wolfowitz will quit on June 30, at the end of the bank’s fiscal year. Bank sources said he gave up fighting to save his job after realising he had lost support from developing countries including those in Africa. They had initially backed him in the row about a pay rise he arranged for his girlfriend.
From the start Wolfowitz was a controversial choice by US President George W. Bush to head the poverty-fighting institution because of his neoconservative background and high-profile role in planning the Iraq war. His blunt managerial style also did not go down well with many of his new colleagues.
The World Bank is now looking for a new president, a post traditionally filled by an American while a European heads its sister organisation, the International Monetary Fund. However in the wake of the Wolfowitz episode, some are calling this set-up into question.