SINGAPORE (Reuters) - A strong candidate for the U.S. to head the World Bank would be good for the United States and the bank because the largest economy in the world should be represented in the top international agencies, the outgoing president Robert Zoellick said Saturday, stressing that he did not part in the selection process.
In an interview in Singapore, Zoellick also said he did not believe in Spain, Italy or Portugal bailouts necessary to reduce the burden of huge external debts, but that the necessary reforms of critical support from Germany and other leading European nations and expressed cautious optimism that the global economy would sustain growth this year.
The World Bank last week launched the nomination process to select a new president to succeed Zoellick when he resigned in June, calling the names of any of its 187 member countries. The Obama administration said it would open the process to competition.
Zoellick noted, however, that the Americans did not occupy senior positions within the UN, the World Trade Organization, regional development banks or the International Monetary Fund.
"I want the U.S. to experience a sense of responsibility for the international system. So, in the sense that if you get the right candidate an American, I think this may be good for the United States and the bank. "
So far, two people most often mentioned as possible successors are both American: U.S. Secretary of State Hillary Clinton and former White House counsel Economic and former Treasury Secretary Lawrence Summers. The State Department has insisted that Clinton would not be taking the job.
As in 2011, when Dominique Strauss-Kahn resigned as CEO of International Monetary Fund, officials from countries like Brazil and the Philippines said it was time to break the decades-old model to an American charge of the World Bank and IMF a European summit.
Agustin Carstens, Mexico's central bank governor, who made an unsuccessful attempt to head the International Monetary Fund last year, said Wednesday the president of the World Bank should be open to a wide field of candidates.
PURCHASE time in Europe
Zoellick said that the last rescue of Greece totaling € 130 billion would only buy time.
"It is too early to know, partly it depends on the actions of the Greeks to make," he said.
"I think the European Union Treaty with Greece as an element, but the basics are really going to be the success of some of the larger countries, like Italy and Spain."
But he said bailouts are not necessary for both countries and Portugal.
"The situation of each country is different and you really have three interrelated problems. For some it is the size of sovereign debt, for some, it is the effect on the banking sector, and for some it is their competitiveness, "he said, adding that" Spain and Italy need time to make reforms. "
"But I think this is more difficult to accomplish when there is a recession in Europe."
Support from other European nations was also crucial.
"What I've tried to suggest, given the policy of reform in some Mediterranean countries (is that), it will be important for Germany and other leaders in the process show some prospects if reforms are made and how they be supported by other European countries. "
GLOBAL ECONOMY, CHINA AND OIL
Zoellick said that the prospects for global economic growth this year remains cautiously positive with many joint stabilization in Europe and China achieve a soft landing in oil prices a wildcard.
"I'm cautiously optimistic about the international economy. Our forecasts are that growth could slow down a bit this year. What I see is that the U.S. economy has had some momentum, "he said.
"If Europe is able to continue to stabilize the situation, it's a big if, but it's important. And I think China has problems in the real estate industry but I think clean is that they are on the process for a soft landing.
"The two big question marks for me are energy prices with political risk and Europe being able to maintain."
Eventually Brent settled near a 10-month peak above $ 125 a barrel Friday, announced a fifth consecutive week of heightened concerns over tensions with Iran over its nuclear program and reductions in supply sent Oil prices on both sides of the Atlantic.
The crude oil price spike has prompted speculation the International Energy Agency may again call for the release of oil stocks, or the United States may release strategic oil reserves.
Zoellick said that oil prices remain a concern, although the World Bank is just one observer, any decision to release strategic oil stocks.
"It's not my call," he said, adding that "I do not think we should rush into this, but why the strategic reserve was created was for use in situations emergency. "
In an interview in Singapore, Zoellick also said he did not believe in Spain, Italy or Portugal bailouts necessary to reduce the burden of huge external debts, but that the necessary reforms of critical support from Germany and other leading European nations and expressed cautious optimism that the global economy would sustain growth this year.
The World Bank last week launched the nomination process to select a new president to succeed Zoellick when he resigned in June, calling the names of any of its 187 member countries. The Obama administration said it would open the process to competition.
Zoellick noted, however, that the Americans did not occupy senior positions within the UN, the World Trade Organization, regional development banks or the International Monetary Fund.
"I want the U.S. to experience a sense of responsibility for the international system. So, in the sense that if you get the right candidate an American, I think this may be good for the United States and the bank. "
So far, two people most often mentioned as possible successors are both American: U.S. Secretary of State Hillary Clinton and former White House counsel Economic and former Treasury Secretary Lawrence Summers. The State Department has insisted that Clinton would not be taking the job.
As in 2011, when Dominique Strauss-Kahn resigned as CEO of International Monetary Fund, officials from countries like Brazil and the Philippines said it was time to break the decades-old model to an American charge of the World Bank and IMF a European summit.
Agustin Carstens, Mexico's central bank governor, who made an unsuccessful attempt to head the International Monetary Fund last year, said Wednesday the president of the World Bank should be open to a wide field of candidates.
PURCHASE time in Europe
Zoellick said that the last rescue of Greece totaling € 130 billion would only buy time.
"It is too early to know, partly it depends on the actions of the Greeks to make," he said.
"I think the European Union Treaty with Greece as an element, but the basics are really going to be the success of some of the larger countries, like Italy and Spain."
But he said bailouts are not necessary for both countries and Portugal.
"The situation of each country is different and you really have three interrelated problems. For some it is the size of sovereign debt, for some, it is the effect on the banking sector, and for some it is their competitiveness, "he said, adding that" Spain and Italy need time to make reforms. "
"But I think this is more difficult to accomplish when there is a recession in Europe."
Support from other European nations was also crucial.
"What I've tried to suggest, given the policy of reform in some Mediterranean countries (is that), it will be important for Germany and other leaders in the process show some prospects if reforms are made and how they be supported by other European countries. "
GLOBAL ECONOMY, CHINA AND OIL
Zoellick said that the prospects for global economic growth this year remains cautiously positive with many joint stabilization in Europe and China achieve a soft landing in oil prices a wildcard.
"I'm cautiously optimistic about the international economy. Our forecasts are that growth could slow down a bit this year. What I see is that the U.S. economy has had some momentum, "he said.
"If Europe is able to continue to stabilize the situation, it's a big if, but it's important. And I think China has problems in the real estate industry but I think clean is that they are on the process for a soft landing.
"The two big question marks for me are energy prices with political risk and Europe being able to maintain."
Eventually Brent settled near a 10-month peak above $ 125 a barrel Friday, announced a fifth consecutive week of heightened concerns over tensions with Iran over its nuclear program and reductions in supply sent Oil prices on both sides of the Atlantic.
The crude oil price spike has prompted speculation the International Energy Agency may again call for the release of oil stocks, or the United States may release strategic oil reserves.
Zoellick said that oil prices remain a concern, although the World Bank is just one observer, any decision to release strategic oil stocks.
"It's not my call," he said, adding that "I do not think we should rush into this, but why the strategic reserve was created was for use in situations emergency. "
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