Important note: Information in this article was accurate in 2004. The state of the art may have changed since the publication date.

Reuters NewMedia - December 23, 2004
Doug Palmer

David Waskow, international program director at the Friends of the Earth, said many groups were worried that Zoellick -- the top U.S. official in charge of negotiating trade agreements with other countries -- was too closely tied with U.S. business interests to head an institution crucial to poverty alleviation and sustainable development in poor countries.

President Bush's re-election last month has heightened speculation in the development community that the White House wants it own World Bank chief.

Zoellick is considered a leading candidate for the post, replacing Australian-born American James Wolfensohn, whose 10-year term expires in June 2005.

By informal agreement among shareholder governments that finance the World Bank and the International Monetary Fund, the post of the World Bank chief traditionally goes to an American, while the IMF's top job goes to a European.

Waskow accused Zoellick of making steep demands on developing countries in trade talks, without offering significant U.S. concessions in return.

David Bryden, communications director for the Global AIDS Alliance, said his group also opposed Zoellick's possible selection as World Bank chief.

Zoellick has pursued trade agreements that have benefited big pharmaceutical companies at the expense of poor people needing access to cheap medicines, Bryden said.

"That's a record that's deeply disturbing not only to us but to a lot of AIDS organizations," he said.

Neena Moorjani, a spokeswoman for the U.S. Trade Representative's office, did not respond directly to the groups' complaints.

"Ambassador Zoellick serves at the pleasure of the president. He is focused on implementing the president's trade agenda," Moorjani said.

GOOD MARKS FROM CONGRESS, BUSINESS

Zoellick has received generally good marks from Congress and the business community for his work over the past four years. His supporters argue he has done more to advance labor and environmental objectives in trade agreements than his predecessors, although others dispute that.

Zoellick played a major role in launching the current round of world trade talks, known officially as the Doha Development Agenda, whose primary goal is spurring development in poor countries through trade liberalization.

A key ingredient to launching the round was a hard-fought agreement which clarified that WTO intellectual property rules did not prevent poor countries from taking certain steps to ensure their people have access to life-saving drugs.

AIDS activists accuse Zoellick of thwarting the implementation of that understanding. But U.S. trade officials say they have acted responsibly to protect the patent system which is key to creation of new drugs.

Many business leaders, including Frank Vargo, vice president for international affairs at the National Association of Manufacturers, would like Zoellick to remain as chief U.S. trade negotiator for a while longer.

But Zoellick has the background and expertise to bring in a much-needed change at the World Bank if Bush were to tap him for the job, Vargo said.

"What's needed is someone who can really integrate these (developing) countries into the world economy. Otherwise you're just throwing money down a hole," Vargo said.

Apart from his current job, Zoellick boasts diverse Washington experience in senior posts at the Treasury, the State Department and housing finance investor Fannie Mae.

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