U.S Presidential Power to Appoint the World Bank President, Where Does It Come from, and Who Can Impede It?

U.S Presidential Power to Appoint the World Bank President,

Where Does it Come From, and Who Can impede it?

Elizabeth Lopez

Foreign Affairs and the Constitution

Professor Ku

December 21, 2009

U.S Presidential Power to Appoint the World Bank President,

Where Does it Come From, and Who Can impede it?

The United States President has nominated and appointed the presidents of the World Bank for the last 65 years. Where does this U.S. presidential power come from? It is not defined under the World Bank’s Articles of Agreement or expressed under the U.S Constitution. Instead, selection of the Bank’s President is based on an unwritten “gentleman’s agreement” reached in 1944 when the United States was, and still remains, the largest shareholder. That unwritten agreement between the U.S and the Bank’s western European stakeholders prescribed the outcome of what today is the standard for the Bank’s presidential appointments. This is reflective of the World Bank’s standard of allocating votes; where every member gets votes proportional to their investment. At the Bank’s inception the U.S as the biggest donor received more than the majority of votes it also received the power to appoint the Bank’s President.

If the power to appoint the World Bank president were under the U.S President’s constitutional powers it would have to fall under the Appointment Clause of the Constitution. It does not expressly fall under the Appointment Clause, because it does not fall under the President’s expressed powers. Therefore, we must look to see if it falls under any implied powers. Given the U.S Presidents actions in appointing the Bank’s president it seems implied that it could fall under the Appointment Clause as an implied power. The implied power is conditional upon the appointed World Bank president being an “Officer” of the United States. However, this would obscure the balance of power within the hierarchy of the World Bank while giving Congress ultimate control or...