In stark contrast to the World Bank’s past policy of disengaging in development work in war torn countries, under the leadership of Paul Wolfowitz, the World Bank has intensified its efforts in Iraq despite the escalating violence and civil strife. Yesterday’s edition of the Wall Street Journal features a front page article entitled, “In World Bank Role, Wolfowitz Keeps up Battle to Reshape Iraq,” which details how Mr. Wolfowitz has pushed for the bank to have a much stronger role in Iraq in an attempt to promote economic development, and hopefully stability. While many organizations, including the IMF, house their Iraq offices in Amman, Jordan for security purposes, amid this year’s increased violence the World Bank actually moved its Iraq office to Baghdad. Wolfowitz pushed for this in an attempt to make it easier for Iraqis to access the lines of credit that have been extended to them.
In the past, the World Bank avoided countries embroiled in civil wars or violent uprisings. However, in the case of Iraq, Wolfowitz believes that increased engagement is necessary. It is his belief that the World Bank may be better suited to help rebuild Iraq as it is seen as more of a neutral entity by Iraqis. The neutrality argument rings off note to many observers who note Mr. Wolfowitz’s top-level position in the U.S. government between 2001 and 2005. Nonetheless, he continues his mission to reshape Bank policy in an effort to use its financial resources in some of the most difficult places to promote economic development, and even more importantly, stability.
Published Date: October 31, 2006