The appointment of Paul Wolfowitz as President of the World Bank renders a prime instrument for the economic progress of underdeveloped and developing countries entirey devoid of what little credibility it ever had.
The always insightful Paul Krugman reminds us that;
“The advice that the World Bank gives is as important as the money it lends - but only if governments take that advice. And given the ideological rigidity the Pentagon showed in Iraq, they probably won't. If Mr. Wolfowitz says that some free-market policy will help economic growth, he'll be greeted with as much skepticism as if he declared that some country has weapons of mass destruction ... the Wolfowitz nomination turns the World Bank into the American Bank. Make that ugly American bank: rightly or not, developing countries will see Mr. Wolfowitz's selection as a sign that we're still trying to impose policies they believe have failed.”
As Clare Short, former UK International Development Secretary, says;
“It's as though they [the Americans] are trying to wreck our international systems.”
The Wolfowitz nomination is still to be confirmed by the Europeans. We can hope.