Photo of Zoellick courtesy of World Bank Group
Why He Matters
As cultures across the globe are becoming increasingly interconnected, Robert Zoellick works to promote economic sustainability in America and abroad.
Appointed as president of the World Bank by President George H.W. Bush in 2007, Zoellick is tasked with reducing poverty in poor nations and enforcing the World Bank’s promise to help other countries reach their economic goals.
Last month, for example, the World Bank started a $1.5 billion agriculture trust fund to help countries like India and the Phillipines bolster their crop shortages. The world’s richest nations have promised to donate $20 billion in the next three years to make sure the effort is effective.
“I’d like (the World Bank) to get more (of the $20 billion promised) but the key thing is that people keep their pledges,” Zoellick told reporters in November. “My key point is, let’s get these things up and running.”
Zoellick has built his reputation on being a “closer,” or someone who focuses on the end result of the task at hand. In a Harvard Law School article published last summer, his alma mater noted that Zoellick has pushed President Barack Obama to devote 0.7 percent of the massive U.S. bailout package to helping support the world’s poorest countries.
Path to Power
Zoellick’s professional track record involves leadership positions at some of the most-recognized and powerful financial institutions in the world. From 1993 to 1997, Zoellick served as an executive vice president of Fannie Mae, the large housing finance corporation. Just before joining the World Bank, he served as vice president, international of the Goldman Sachs Group; Zoellick also served as managing director and chairman of Goldman Sach’s Board of International Advisors from 2006-2007.
In the public sector, Zoellick, a proponent for free trade, served as Deputy Secretary of the U.S. State Department from 2005 to 2006. Before that, he served in the Cabinet as the U.S. Trade Representative from 2001 to 2005; in that post, he worked to bolster open markets at the domestic and global levels. Along with ministers from across the world, he worked to launch the Doha Development Agenda in the World Trade Organization in 2001.
Zoellick has been involved with numerous humanitarian efforts across the globe, from helping gather aid to establishing the new government of Southern Sudan to drawing China into regional peace efforts.
In His Own Words
Throughout his career, the World Bank president says his approach has been to “be straight, honest, direct. When people think of negotiations, they tend to see them as one-offs. I don’t. If we work together, we share the credit, and we build the basis to solve other problems in the future.”
The Issues
A global recession … and ensuing inflation
In his position at the helm of the World Bank, Zoellick works to monitor economic progress across the globe. Most recently, the global economic crisis has required keeping closer tabs than usual on possible skyrocketing inflation in foreign markets, especially in Asia, where central banks closely follow the Fed’s movements. In a recent speech, Zoellick said Asian banks are reluctant to raise interest rates to fight inflation and thus raise the value of their currencies — this action would weaken the potential for growth in their exports by making them less competitive.
When it comes to the U.S. and its own fledgling currency, Zoelick said there is little America can do to bolster the dollar’s value — at least in the near term.
“Given the role of the dollar frankly, there’s not a tremendous amount one can do other than try to run a good, sound policy and restore the US economy to growth,” he said.
Giving guidance to other nations … and keeping everyone happy
The World Bank often finds itself in the role of moderator as countries work to develop trade agreements and build economic policy. Zoellick is currently working to help China and Africa strike an agreement that could reinvigorate industrial activity on the continent. Because African leaders are wary of competition, and Chinese leaders are wary of being viewed as a new breed of imperialists, Zoellick will find himself using his background and skills to help both countries reach a mutually beneficial agreement.
The Network
Largely viewed as a member of President George H.W. Bush’s inner circle when he was nominated for the World Bank position in 2007, Zoellick is also seen as a hybrid who is respected on both sides of the aisle and across the globe.
Zoellick has worked closely with Grant Aldonas of the Center for Strategic and International Studies.
“He can be very blunt,” Aldonas said of his colleague in a 2007 interview. “And so, to the extent he’s demanding, it can be tough on people who have gotten comfortable with the standard operating procedure.”
Campaign Contributions
According to the Center for Responsive Politics, Zoellick has given a total of $19,300 in campaign contributions to the Republican party since 1995.
In 2007, while at Goldman Sachs, Zoellick gave $2,300 to Sen. John McCain’s presidential campaign.
In 2004, Zoellick gave $2,000 to the presidential campaign of President George H.W. Bush.