22 March 2005

Fears grew today among anti-poverty campaigners that Tony Blair tonight in Brussels will accept George Bush’s nomination of his deputy defence secretary Paul Wolfowitz as the World Bank’s next president.

Reports suggest that after Germany and Canada supported Mr Wolfowitz for the job, France and other bank members will follow when European leaders meet for dinner at their Brussels summit this evening.

ActionAid International (UK) warns Mr Blair that if he backs the nomination, the British prime minister will damage the credibility of the recommendations of the Commission for Africa which he chaired.

British finance minister Gordon Brown seeks discussions between the US and developing countries over the nomination.

But ActionAid stresses that if the EU chiefs have already decided to endorse the nomination, talks with poor nations will offer a mere fait accomplit rather than real consultation.

ActionAid also worries that Mr Wolfowitz will block moves to cancel multilateral debt and insist developing countries must privatise and deregulate industries in exchange for help.

Earlier this month Hilary Benn, the UK international development secretary and a member of the Bank’s board, announced he would apply less pressure on developing countries to privatise industries as a condition for aid.

Mr Benn urged the Bank, the International Monetary Fund and other donors to follow his example.

Steve Tibbett, head of UK policy and campaigns for ActionAid International, said: "A stitch-up at dinner this evening between EU leaders and the US over Mr Wolfowitz’s nomination will be hard to swallow.

"By failing its first real test, this will also cast doubt on Mr Blair’s commitment to the Commission for Africa recommendations."