Management Changes

Washington, DC, October 21, 2004

The following is a statement by World Bank President James D. Wolfensohn on the departure of Managing Director Jeffrey Goldstein.  Wolfensohn has also announced arrangements to carry on the work of Mr. Goldstein

Some months ago, Jeffrey Goldstein told me of his intention to leave the World Bank later this year. Jeffrey has now indicated that this will happen as of October 22, 2004.  In his capacity as Managing Director over the past five years, Jeffrey has made a major contribution to the work of the Bank Group.  He has been a key member of the senior management team, a trusted adviser and a friend. While I am sorry to see him go, Jeffrey and his family have decided to return to New York City where he has been offered an exciting professional opportunity. All of Jeffrey's many friends and colleagues across the Bank Group will miss him, but we also know that he will stay engaged in the work of development to which he has always been deeply committed--and in that respect, we will continue to collaborate.

Jeffrey has been an active member of the Bank's Management Committee, which is responsible for the institution's overall corporate leadership and strategy. He has also been the Bank's point person for the International Development Association (IDA)—including chairing the donor meetings to mobilize resources for IDA’s 14^th replenishment. In addition, Jeffrey has helped me in strengthening the Bank’s partnerships in many areas and with our G-8 shareholders.

Jeffrey joined the Bank in September 1999 as Managing Director responsible for the management of the institution's internal and external financial affairs, including oversight of our efforts with client countries in strengthening their financial and capital market systems. Under Jeffrey's leadership, we have made progress in aligning better our financial resources with our strategic priorities. His leadership of our strategy process, including the development of the 2001 Strategic Framework--which continues to guide the Bank's operations today--has led to a clearly articulated strategy and improved implementation of our development mandate.

In his capacity as Chief Financial Officer, Jeffrey has successfully ensured the continued integrity of the Bank's financial operations. He also has made an important impact in a number of other areas including the development and execution of an integrated risk management function, and the strengthening of our financial controls and management.  He has also worked closely with me in enhancing the Bank’s efforts to fight corruption.

Prior to joining the Bank, Jeffrey was Co-Chairman of BT Wolfensohn and a member of the Bankers Trust Company Management Committee.  In addition to his managerial responsibilities, he served as financial adviser to financial institutions and industrial corporations in Asia, Australia, Europe, Latin America, and North America.  Earlier in his career, Jeffrey taught economics at Princeton University and worked at the Brookings Institution.  He received his Ph.D, M.Phil, and M.A in economics from Yale University and his B.A from Vassar College.

Jeffrey will be becoming a partner with Hellman and Friedman, LLC, a private equity investment firm well respected for its investment philosophy and approach. The firm is an active investor in a wide range of industries and in markets in many countries.

Again, I would like to express my profound appreciation to Jeffrey for all that he has done for the World Bank Group. We will miss his dedication, strategic sense and, not least, his sense of humor. We wish him and his wife, Nancy, all success and happiness in their new endeavors.

Below are the interim succession arrangements:

Geoff Lamb, Chair of IDA14 Replenishment

The International Development Association is the keystone of the international community's support for poor countries, and a vital instrument in implementing the Bank's mission. The IDA14 replenishment, covering FY06-08, is currently being discussed by IDA Deputies and borrower country representatives. A strong replenishment is critically important for the development objectives of the Bank and of our client and donor countries. The long-tested practice has been that such negotiations are chaired by the most senior member of the Bank's management team with accountability for IDA. I am, therefore, pleased to announce that IDA Deputies have strongly endorsed my proposal that Geoffrey Lamb, Vice President for Concessional Finance and Global Partnerships, should assume the chair of the IDA14 replenishment discussions in succession to Jeffrey Goldstein, whose departure from the Bank later this month was recently announced.

To underline the commitment of the Bank's leadership, and in recognition of the importance of this new role, Geoff will step back from his current day-to-day responsibilities for IDA and report, as Vice President and Senior Counsellor for IDA, directly to me. In this capacity, he will also take the lead responsibility within the management team for engaging with our shareholders on the broader international agenda of aid policy and financing—an agenda in which IDA, alongside our development partners, plays such a critical role. Geoff will retain his other existing management responsibilities for concessional financing and partnerships, including trust funds and global programs.

Philippe Le Houerou, Director of FRM, will continue to manage FRM's IDA team, and will be the point person on day-to-day IDA matters.

Geoff will assume his new functions effective October 22, 2004.

John Wilton, Acting Chief Financial Officer

The Bank's financial operations are key to ensuring the overall success of our development efforts, and financial oversight is key to ensuring that the Bank functions with integrity and efficiency. For the past five years, Jeffrey Goldstein has been responsible for managing the institution's internal and external financial affairs and, for more than a year now, he has also been serving as Chief Financial Officer. He has fulfilled these responsibilities with distinction and with our great appreciation. However, as recently announced, he will be leaving the Bank later this month. A global search for a new CFO will commence in the immediate future. An Executive Search firm will be hired on a competitive basis.

Also as recently announced, John Wilton will serve as the Acting Chief Financial Officer (CFO) of the Bank, reporting to me. In this capacity, John will assume responsibility for the financial complex, chairing the Finance Committee, and continuing as Vice President of the Strategy, Finance, and Risk Management group. Controllers and Treasury will report to John, and he will also provide oversight to the Trust Fund Quality and Compliance Unit (TQC). John's appointment will help ensure that the overall risk management of IBRD remains strong and that we have clear focal point for issues related to risk and finance.

John will assume these duties effective October 22, 2004.

Jim Wolfensohn