Outgoing World Bank Leader to Help Coordinate Gaza Pullout

The United States and its key allies working to forge Mideast peace appointed outgoing World Bank President James D. Wolfensohn on Thursday as a special envoy to help coordinate Israel’s withdrawal from the Gaza Strip and assist the Palestinians in rebuilding the strife-torn area.

In making the announcement, Secretary of State Condoleezza Rice said the Australian-born former investment banker would begin work June 1, the day after his 10-year tenure as head of the World Bank ends.

His assignment would continue through year’s end, she said.

Israeli Prime Minister Ariel Sharon initially presented the controversial plan to pull out of Gaza as a unilateral move. But at a news conference this week at President Bush’s Texas ranch, he indicated that he supports the idea of working with the Palestinians to implement his plan.

Wolfensohn’s appointment appears to be an attempt by Bush both to solidify Sharon’s offer to work with the Palestinians and to bolster the kind of Israeli-Palestinian cooperation that is considered vital to reaching a comprehensive peace settlement.

“We have an opportunity right now to help Israelis and Palestinians build trust with one another and achieve the peace and security they both desire,” Rice said at the brief ceremony at the State Department.

She added that part of Wolfensohn’s job would be to “encourage more direct contacts between the Israelis and the Palestinians themselves.”

Wolfensohn, 71, was a successful New York-based investment banker before he came to Washington as president of the World Bank in 1995. During his tenure, he shook up what many considered to be a staid and inflexible lending institution.

He is credited with an array of major initiatives, including offering debt relief to many of the world’s poorest countries and ordering bank officials out of headquarters and into the field.

However, his management style was controversial, with some staff members complaining that he too often resorted to an abrasive, overly aggressive manner to get his way.

Rice said Wolfensohn would help coordinate nonmilitary aspects of the Israeli pullout, including disposing of Israeli assets left in Gaza, such as housing, and advising the Palestinian Authority on reconstruction efforts.

Under the withdrawal, scheduled for this summer, about 8,000 Jewish settlers are expected to leave 21 settlements in Gaza. The vacated land will be turned over to Palestinian control. Sharon said Israel also would abandon four small settlements in the West Bank.

Rice made Thursday’s announcement on behalf of the “quartet” of major powers working to achieve Mideast peace -- the U.S., the United Nations, the European Union and Russia.

Wolfensohn is the second American envoy named to directly involved in the peace process. Army Lt. Gen. William Ward was appointed this year to help the Palestinians reorganize their security forces and build cooperation with Israel on the security front.

Palestinians were quick to welcome Wolfensohn’s appointment.

“He is a man of honor, dignity and experience,” said chief Palestinian negotiator Saeb Erekat. “We welcome his appointment, and we hope it will help development in both the West Bank and Gaza.”

Israeli officials also welcomed the choice, although in slightly more measured terms. Foreign Ministry spokesman Mark Regev said Israel supported international efforts to build the economy of Palestinian territories.

“We will do what we can to facilitate Mr. Wolfensohn’s work,” Regev said.

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Times staff writer Laura King in Jerusalem contributed to this report.