Lewis Preston; Transformed Operations of World Bank

Lewis T. Preston, who headed the World Bank for less than four years but was credited with major transformations of the agency that lends money to developing nations, is dead.

Preston, who died of cancer at age 68 Thursday at his home, had announced earlier this year that he would retire at the end of May.

“Lew Preston provided a quiet, firm leadership that has transformed the bank. He cared deeply about this institution, and we cared deeply for him,” acting World Bank President Richard Frank said in a statement Friday.

Preston will be succeeded by James Wolfensohn, an international investment banker.

Preston took over the helm of the biggest development bank in September, 1991, after a distinguished career as a Wall Street banker, most notably as chief executive officer of J.P. Morgan & Co.

He guided the institution through the difficult stages of helping the former Soviet Union join the world of market-based economies. He traveled to the Soviet Union shortly after taking over, meeting with Soviet President Mikhail Gorbachev and Russian President Boris Yeltsin.

Eventually, all 15 of the former Soviet republics joined the bank. Eight other nations also joined the bank during Preston’s tenure.

In addition, Preston led the way in initiating programs in newly democratic South Africa, resumed banking relations with Vietnam and worked to encourage the peace process in the Middle East.

Internally, he also made significant changes, axing a whole tier of senior management, establishing independent inspection panels, introducing new cost-accounting systems and making the bank’s business more visible and accessible to the public.

He also put greater emphasis on loans to benefit education, the environment and health, and he told member states that their applications would be based on a nation’s social justice record as well as its economic efficiency.