Wolfowitz exit seen clearing way for W Bank progress

LONDON, May 18 (Reuters) Paul Wolfowitz's exit as World Bank president clears the way for the global lending body to move ahead, many said after he announced his decision, but by not quitting earlier he had hurt his own and the bank's reputation.

The general reaction has been that a protracted battle over his stewardship, prompted by his involvement in a high-paying promotion for his companion, had undercut any chance he had to be an effective leader.

''The poorest people in the world ... deserve the very best we can deliver,'' Wolfowitz himself said in a statement. ''Now it is necessary to find a way to move forward.'' His resignation takes effect on June 30 and prompted some non-governmental organisations to call for a new way of appointing his successor.

''Wolfowitz's actions have impeded the ability of the World Bank to carry out its critical mission of alleviating global poverty,'' said US Senator Christopher Dodd, a Democratic presidential hopeful, echoing the sentiments of many.

Wolfowitz took the top post in the bank -- responsible for billions of dollars in aid projects around the world -- in 2005.

A former US deputy defence secretary already controversial as a leading architect of the 2003 US-led invasion of Iraq, he won praise from some in Africa and Asia for his bank policies, which included a strong campaign against corruption in aid programmes and in the governments of recipients.

UNTENABLE POSITION For many people Wolfowitz's role in the promotion of Shaha Riza, an expert at the bank, an involvement which a bank panel found broke several rules, had wiped out any credibility he might have had as an anti-corruption champion.

MORE REUTERS AB VV2100