Bankers' Banker

A world job for A. W. Clausen

In the midst of trying to round up final stray votes on the campaign trail, Jimmy Carter last week took time out to nominate Bank of America President A.W. (Alden Winship) Clausen, 57, to succeed Robert S. McNamara, 64, as president of the World Bank. The White House made the announcement now in order to head off growing sentiment among the 138 nations making up the World Bank that it was time for a non-American to head the organization. Ever since the World Bank and the International Monetary Fund were jointly founded in 1944, the bank has been headed by an American and the IMF by a European. Although the U.S. has the largest block of votes on the bank's board of directors, the other nations could theoretically combine to back another candidate.

Known officially as the International Bank for Reconstruction and Development, the World Bank initially helped finance the rebuilding of Europe after World War II. After the 1950s, however, it moved its attention to economic development in the Third World. The bank lends money to poor countries at very low interest rates for such projects as agricultural development and electrification of rural areas. The U.S. has contributed 21% of the organization's working capital, but Congress in recent years has been very unwilling to appropriate more funds for the bank.

Under McNamara, the World Bank embarked on an ambitious program to increase lending commitments to $30 billion by 1985. Last year the bank lent over $12 billion, up from $1 billion in 1968, when McNamara was appointed president. In an emotional farewell speech to the bank's annual meeting last month, McNamara defended often unpopular foreign aid to underdeveloped countries. Said he: "Investment in the human potential of the poor is not only morally right, it's very sound economics."

When McNamara announced that he would be stepping down after his 65th birthday next June 9, Carter briefly considered former United Nations Ambassador Andrew Young for the post. But when he tested the idea privately, Democratic advisers and businessmen vetoed the nomination as too controversial. Administration officials had also begun drawing up a list of suitable candidates. Clausen was on the list of ten names presented to Carter because he had both an international-finance background and an interest in the problems of the developing world. Some other names on the list were said to be Paul Volcker, chairman of the Federal Reserve Board, Anthony Solomon, former Under Secretary for Monetary Affairs at the Treasury Department and now president of the New York Federal Reserve Bank and Peter Peterson, an investment banker and onetime Secretary of Commerce.

Known to friends as Tom because of a role he once had in a high school play, Clausen was a popular choice. The World Bank directors are expected to approve his nomination within a few weeks. Fellow Californian Ronald Reagan, whom Carter consulted before naming Clausen, has also approved the appointment. Although a Republican, Clausen was rumored to be Carter's first choice for Secretary of the Treasury in 1976, but he was never formally offered the job because he said privately that he was not interested in a political post. He is a strong advocate of more aid for developing countries and was attracted by the World Bank post. Said he last week: "The great thing about the job is to be an advocate, to push forward on the needs of Third World countries. Here I can address myself to their problems." Developing nations in serious economic difficulties need such an advocate.

This file is automatically generated by a robot program, so viewer discretion is required.