World Bank Warns Oil Price Could Soar to Record $150 a Barrel

GUARDIAN US: Escalation of Israel-Hamas war into Middle East-wide conflict would disrupt oil supplies and stoke food prices, says Bank

Oil prices could soar to a record high of more than $150 a barrel if the war between Israel and Hamas leads to a repeat of the full-scale conflict in the Middle East witnessed 50 years ago, the World Bank has warned.

In the first major assessment of the economic risks of an escalation of the war beyond Gaza’s borders, the World Bank said there was a risk of the cost of crude entering “uncharted waters”.

A “large disruption” scenario comparable with the Arab oil boycott of the west in 1973 would create supply shortages that would lead to the price of a barrel of oil increasing from about $90 to between $140 and 157. The previous record – unadjusted for inflation – was $147 a barrel in 2008.

“The latest conflict in the Middle East comes on the heels of the biggest shock to commodity markets since the 1970s – Russia’s war with Ukraine,” said Indermit Gill, the World Bank’s chief economist. “That had disruptive effects on the global economy that persist to this day. » | Larry Elliott, Economics editor | Monday, October 30, 2023

Ivanka Trump Says Father Offered To Give Her World Bank Top Job, But She Passed | TIME

Ivanka Trump says father offered to give her world bank top job, but she passed.

World Bank Warns That Euro Collapse Could Spark Global Crisis
THE GUARDIAN: Europe 'facing Lehmans moment' says outgoing head Robert Zoellick as Greeks are warned over key election

The outgoing head of the World Bank, Robert Zoellick, will warn the G20 summit that Europe runs the risk of sparking a Lehman-style global crisis that will have dire consequences for developing nations.

As Greek voters go to the polls in elections that could determine the future of the eurozone, Zoellick told the Observer he was advising emerging nations to ready themselves for the consequences of events in the single-currency area.

The election of an anti-austerity government would spark the most serious crisis for the euro so far, following the apparent failure of a Spanish bank bailout last week. German chancellor Angela Merkel yesterday ruled out renegotiating Greece's bailout, saying the country must stick to its deals with international lenders. Unofficial polls suggest the conservative New Democracy party is ahead of the anti-austerity Syriza by four percentage points — though as much as 15% of the electorate remains undecided.

As all eyes focus on Athens, Zoellick said: "Europe may be able to muddle through but the risk is rising." He added: "There could be a Lehmans moment if things are not properly handled." The bankruptcy of Lehman Brothers in September 2008 proved to be the trigger for the deepest slump in the global economy since the 1930s, and Zoellick said developing countries needed to "prepare for the uncertainty coming out of the eurozone and the wider financial markets". He added: "It will be better if they can avoid piling up short-term debts that can come due in volatile periods and look to the fundamentals of future growth – infrastructure and human capital." » | Larry Elliott, Helena Smith in Athens and Julia Kollewe | Saturday, June 16, 2012

Hillary Clinton Interested in Becoming Head of World Bank?

THE DAILY TELEGRAPH: US Secretary of State Hillary Clinton has been in discussions with the White House about leaving her job next year to become head of the World Bank, sources familiar with the discussions said on Thursday.

The former first lady and one-time political rival to President Barack Obama quickly became one of the most influential members of his cabinet after she began her tenure at State in early 2009.

She has said publicly she did not plan to stay on at the State Department for more than four years.

Associates in the USA say Mrs Clinton has expressed interest in having the World Bank job should the Bank's current president, Robert Zoellick, leave at the end of his term, in the middle of 2012.

"Hillary Clinton wants the job," said one source who knows the secretary well.

A second source also said Clinton wants the position.

A third source said Mr Obama has already expressed support for the change in her role.

It is unclear whether Obama has formally agreed to nominate her for the post, which would require approval by the 187 member countries of the World Bank.

The White House declined to comment. » | Thursday, June 09, 2011

Another job for the boys (or girls)! For top jobs, experience seems not to matter. It’s all about strings being pulled. – © Mark

World Bank Warns of Social Discontent in Russia
THE TELEGRAPH: The World Bank has given warning of serious social discontent in Russia after delivering a bleak assessment of the country's economy.

World Bank warns of social discontent in Russia. Photo courtesy of The Telegraph
Scotching optimism that the world's largest country may already be in recovery, the bank predicted that Russia's economy is contracting far more sharply than the Kremlin has acknowledged.

According to revised government forecasts, the Russian economy will shrink by 2.2pc this year. But it its latest economic report on Russia, the World Bank predicts that Gross Domestic Product will actually contract by 4.5pc.

The assessment comes as foreign investors focussed on emerging markets again start to flirt with Russia after months of record capital flight in the wake of last August's war with Georgia and a collapse in the price of oil.

The Russian stock exchange's benchmark RTS index has gained over 30pc this year alone, outpacing most emerging markets, after a modest recovery in oil and metal prices.

But Zeljko Bogetic, the World Bank's lead Russia economist, cautioned against such optimism.

"As the crisis continues to spread to the real economy around the world, initial expectations that Russia and other countries will recover fast are no longer likely," he said. >>> By Adrian Blomfield in Moscow | Monday, March 30, 2009

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Yemen 'Faces Crisis as Oil Ends'
BBC: Yemen is facing an economic and political crisis as the country's oil resources near exhaustion, a report by a London-based think-tank says.

The Royal Institute for International Affairs warns that instability there could expand a zone of lawlessness from northern Kenya to Saudi Arabia.

It describes Yemen's democracy as "fragile" and points to armed conflicts with Islamists and tribal insurgents.

One diplomat says that the country's prospects get worse every month.

The World Bank predicts that Yemen's oil and gas revenues will plummet over the next two years and fall to zero by 2017 as supplies run out.

Given that they provide around 90% of the country's exports, this could be catastrophic.

An unnamed energy expert is quoted in the report as saying that this points to economic collapse within four of five years time. >>> By Martin Plaut, BBC News | November 20, 2008

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>

Arab Education Falls Behind
BBC: The World Bank has said the quality of education in the Arab World is falling behind other regions and needs urgent reform if it is to tackle unemployment.

In a report, Bank officials said Arab states had to make improving education their top priority, because it went hand-in-hand with economic development.

The region had not seen the increasing literacy and school enrolment witnessed in Asia and Latin America, they said.
Djibouti, Yemen, Iraq and Morocco were ranked the worst educational reformers. Arab education 'falling behind' >>> By Dale Gavlak

Mark Alexander (Paperback)
Mark Alexander (Hardback)

World Bank To Have New Chief
BBC: The World Bank's executive board has confirmed that Robert Zoellick will become the organisation's new boss.

Mr Zoellick, who was nominated by US President George W Bush, will replace Paul Wolfowitz, who leaves on 30 June.

Mr Wolfowitz is stepping down after two years in office, following a scandal over his role in winning a pay and promotion package for his partner.

A former US deputy secretary of state, Mr Zoellick has most recently worked for investment bank Goldman Sachs. New World Bank chief is confirmed (more)

Mark Alexander

End of US Domination at the World Bank?
FT: The World Bank’s board reconvened on Friday to ensure responsibility for operations was effectively transferred prior to the formal departure of Paul Wolfowitz on June 30.

Mr Wolfowitz’s decision to quit as president late on Thursday ended a turbulent two-year tenure as chief of the world’s leading development institution.

His departure in good health is unprecedented at the World Bank and marks what may be an enduring shift in the balance of power at the institution, hitherto dominated by the US and the president it nominates. Post-Wolfowitz planning begins (more) By Krishna Guha, Eoin Callan, Hugh Williamson and Dan Dombey

Mark Alexander

More Cronyism? Blair Could Be A Replacement for Wolfowitz!

Photo courtesy of Google Images

BBC: The US has said it will move "swiftly" to find a replacement for Paul Wolfowitz, who says he plans to quit as head of the World Bank on 30 June.

Mr Wolfowitz will step down after he was caught up in a bitter row surrounding the promotion and salary of his girlfriend, Shaha Riza.

The World Bank said that Mr Wolfowitz had acted in good faith, but admitted that a "number of mistakes" were made.

UK Prime Minister Tony Blair has been mentioned as a possible replacement. US to replace Wolfowitz ‘swiftly’ (more)

Mark Alexander

Wolfowitz Quits
BBC: Paul Wolfowitz is to quit as president of the World Bank following a bitter promotion row involving his partner.

The global lending body said Mr Wolfowitz would step down on 30 June and that it would begin the search for a successor immediately. World Bank head Wolfowitz to quit (more)

FINANCIAL TIMES:
Wolfowitz steps down as World Bank president

TIMESONLINE:
Wolfowitz resigns after scandal over girlfriend’s pay rise

DIE WELT:
Das Ende des Bush-Kandidaten

LE FIGARO:
Wolfowitz démissionne de la Banque mondiale

Mark Alexander

Wolfowitz: The more you dig, the dirtier it gets
SPIEGELONLINE INTERNATIONAL: The cronyism that may cost him his World Bank job is also what caused the Iraq debacle.

The executive board of the World Bank mulled a possible vote of no confidence in the leadership of its president, Paul Wolfowitz, this weekend. How did the renowned neoconservative and former deputy secretary of defense, a primary architect of the Iraq war, come to these straits? Is he, as he claims, the victim of a smear campaign by those who dislike his politics? Or do the charges of favoritism and nepotism reflect genuine character flaws?

The small morality play unfolding at the World Bank tells us something significant about how the United States became bogged down in the Iraq quagmire when Wolfowitz was highly influential at the Department of Defense. The simple fact is that Wolfowitz has throughout his entire career demonstrated a penchant for cronyism and for smearing and marginalizing perceived rivals as tactics for getting his way. He has been arrogant and highhanded in dismissing the views of wiser and more informed experts, exhibiting a narcissism that is also apparent in his personal life. Indeed, these tactics are typical of what might be called the "neoconservative style." Paul Wolfowitz’s Fatal Weakness (more) By Juan Cole

Mark Alexander

Wolfowitz: Wolf-like Tactics at the Top
THE TELEGRAPH: Paul Wolfowitz, the embattled World Bank chief, launched into a threatening tirade against members of his staff when news of his controversial pay and promotion package for his girlfriend began to leak out, it emerged yesterday.

The revelation was one of the more damning elements of a 600-page report by a special investigative panel, which concluded that the scandal "had a dramatic, negative effect on the reputation and credibility" of the bank. Wolfowitz ‘threatened bank staff after leak’ (more)

TIMESONLINE: Shift in White House stance leaves Wolfowitz facing exit

FINANCIAL TIMES: White House signals change on Wolfowitz

“I implore each of you to be fair in making your decision, because your decision will not only affect my life, it will affect how this institution is viewed in the United States and the world” - Wolfowitz [Source: THE AUSTRALIAN]

THE AUSTRALIAN: Wolfowitz begs to stay at World Bank

DIE WELT: Zukunft von Wolfowitz in der Schwebe

FAZ: Wolfowitz will sich nur ändern, nicht abtreten

DIE PRESSE: Die Weltabank wird bedeutungslos

Mark Alexander

Tony Snow on Wolfowitz: A lot of mistakes were made but they were not a firing offence
BBC: The president of the World Bank, Paul Wolfowitz, is meeting the bank's 24-member executive board to respond to allegations against him.

The meeting comes after the panel said he broke bank rules by helping secure a pay rise for his girlfriend.

The board has the power to dismiss him or could choose to report a lack of confidence in his leadership.

Earlier in the day, the White House said it still supported Mr Wolfowitz, but added all options were still open.

"We've made clear that we support Paul Wolfowitz", said spokesman Tony Snow, but added that the bank's "best interests" also had to be served. World Bank hears Wolfowitz case (more)

Mark Alexander

Leading Governments of Europe Want Wolfowitz Out

Photo of Paul Wolfowitz courtesy of SpiegelOnline International

SPIEGELONLINE INTERNATIONAL: Leading governments of Europe signaled that they were willing to let the United States choose the bank's next chief if Paul D. Wolfowitz stepped down soon, officials said.

Leading governments of Europe, mounting a new campaign to push Paul D. Wolfowitz from his job as World Bank president, signaled Monday that they were willing to let the United States choose the bank's next chief, but only if Mr. Wolfowitz stepped down soon, European officials said. Deal Is Offered for Chief’s Exit at World Bank (Read on)

Mark Alexander

Wolfowitz’s Aide Steps Down

Photo of Wofowitz courtesy of Google Images

BBC: A senior aide to embattled World Bank president Paul Wolfowitz has announced his resignation.

Kevin Kellems said an ongoing scandal surrounding his boss made it difficult for him to remain effective in his role at the Washington-based institution. Senior Wolfowitz aide steps down (Read on)

Mark Alexander

Whichever way you slice it, Mr Wolfowitz, you are not wanted at ‘The World Bank’

Photo of Mr Wolfowitz courtesy of Google Images

BBC: World Bank President Paul Wolfowitz has said he would not resign in the face of "bogus" charges against him.

In a statement to a panel of World Bank directors, the embattled chief said he was the victim of a "smear campaign".
Mr Wolfowitz was defending himself against accusations that he pushed through a huge pay package for his girlfriend without the Bank's consent.

The committee is due to report to the Bank's board of 24 representatives, who will decide on the president's fate.
Mr Wolfowitz has apologised for his actions, vowing to stay on to complete what he called "important work".

Earlier, US President George W Bush said he believed Mr Wolfowitz "ought to stay" in his job. I will not resign, says Wolfowitz

Mark Alexander

Wolfowitz Between a Rock and a Hard Place

Photo of Wolfowitz courtesy of Google Images

TIMESONLINE: Paul Wolfowitz will plead to keep his job as President of the World Bank today before a special investigating committee, which is said to have concluded that he breached ethics by engineering a pay rise for his girlfriend.

The fate of Mr Wolfowitz, who in his former role at the Pentagon was one of the architects of the Iraq war, has opened up a new split between EU countries and the US. Wolfowitz is given time to go quietly (Read on) by Tom Baldwin in Washington

Mark Alexander

40 Former Top Officials at World Bank Call for Wolfowitz's Resignation but Wolfowitz Digs In His Heels and Hires Top Lawyer in Fight to Carry On
WARNING: To read all of this article, you might have to sign in at the NYT:

NEW YORK TIMES: WASHINGTON, April 23 — Paul D. Wolfowitz, signaling anew that he will fight for his job as World Bank president, has enlisted a prominent lawyer who defended President Bill Clinton against accusations of sexual misconduct to help convince the bank’s board that Mr. Wolfowitz has done nothing to justify being ousted.

Robert S. Bennett, the lawyer selected by Mr. Wolfowitz, said in an interview that before the bank’s board acted on charges of ethical lapses, he and Mr. Wolfowitz wanted more time to prepare a case showing that the bank president had acted properly on all matters that the board is investigating.

“I am very worried about the rush to judgment,” Mr. Bennett said. “We just had a wonderful example of that in the Duke lacrosse case. I have reviewed the essential documents, and I have absolutely no doubt in my mind that Mr. Wolfowitz exercised good faith and that everything he did was in the best interests of the bank.”

It was unclear whether Mr. Wolfowitz intended to pay his legal fees himself or whether he would seek reimbursement from the bank. His latest sign of apparent determination to keep his job came as the furor over his record continued to spread.
Bank officials said that after several days of canvassing hundreds of employees, about 25 vice presidents of the bank were preparing to document that the overwhelming majority of the employees favor Mr. Wolfowitz’s departure.

The vice presidents met with Mr. Wolfowitz in the afternoon and some bank officials said that they would present their conclusions about bank sentiment to the board of directors, the 24 representatives of various countries and groups of countries that run the bank’s day-to-day affairs in tandem with the president.

The Financial Times reported on Monday that the independent agency within the bank that assesses the effectiveness of bank programs concluded last week that “swift changes in management” were needed to restore its credibility.

In addition, a group of more than 40 former top officials at the bank, many of whom departed after clashing with Mr. Wolfowitz, issued a public call for him to resign. Wolfowitz Hires Prominent Lawyer in Fight to Stay at World Bank (Read on) By Steven R. Weisman

LE FIGARO: Banque mondiale : après Londres, Berlin lâche Wolfowitz

Mark Alexander

It’s over, though Wolfowitz doesn’t yet realize it

Photo courtesy of Google Images

FINANCIAL TIMES Editorial: If Paul Wolfowitz remains head of the World Bank, he will preside over a rudderless hulk. That is today’s inconvenient truth. The US has always had the prerogative of nominating the president of the bank. But this privilege carries with it a big responsibility. Exercising that responsibility now requires acceptance of an immediate change in the bank’s top leadership.

The revelations of Mr Wolfowitz’s role in deciding the terms on which his girlfriend was seconded to the US state department became public a little over a week ago. Since then two points have become clear, despite much obfuscation. First, responsibility for the astonishingly generous terms given his girlfriend rested solely with Mr Wolfowitz, who went beyond the board’s recommendations. Second, the board itself failed to respond appropriately when he went beyond its advice. Why Wolfowitz should depart now (Read on)

Mark Alexander