Australia joins call for open World Bank appointment

SYDNEY, May 27 (Reuters) Australia today joined South Africa and Brazil in urging the United States to abide by an agreement of the Group of 20 economic powers to open up selection of the new head of the World Bank to non-American candidates.

Australia said it strongly supported the G20 position that the heads of both the World Bank and the International Monetary Fund (IMF) should be appointed using an open, transparent selection process with candidates not restricted by nationality.

The US government looks set to appoint an American as the new head of the bank after the resignation of Paul Wolfowitz over accusations he authorised a pay rise for his companion.

President George W Bush has delegated the task of choosing Wolfowitz's replacement to US Treasury Secretary Henry Paulson.

The United States has traditionally selected the head of the World Bank since the institution was established 60 years ago.

Under the same convention, Europe has chosen the head of the bank's sister organisation, the IMF.

Australia was the chair of the G20 in 2006 when the group, in its final communique at its annual meeting, called for reforms to the selection process for the heads of the World Bank and IMF.

''Australia looks forward to the IMF and World Bank continuing their modernisation processes by opening up their appointment processes in response to the concerns of many of their members,'' Costello said in a statement.

South Africa, the current chair of the G20, and Brazil yesterday urged that the G20 position be implemented.

A spokeswoman for South African Finance Minister Trevor Manuel said G20 communiques were so carefully negotiated that they reflected the views of those countries which participated.

The United States is a member of the G20.

''It would be fair to say that those who participated in the agreement should be bound by it,'' Manuel's spokeswoman said.

Brazil's Finance Minister Guido Mantega said: ''At a time when the legitimacy, representivity and efficiency of the World Bank need to be restored, it would be lamentable if the choice of the new president of the World Bank was not based on the merit of candidates presented by any of its member states.'' Brazil is due to become the G20 chair in 2008.

REUTERS SZ PM0727