Fischer not leaving yet
Reports of Bank of Israel governor's possible move to World Bank just gossip
When over a week ago I read in The Economist that the governor of the Bank of Israel, Professor Stanley Fischer, may be a suitable candidate for the position of the president of the World Bank – I smiled to myself. The suggestion made by the authors indeed paid Fischer a compliment, but ignored one detail: Why on earth would he want to?
In order to come to Israel, Professor Stanley Fischer, for those whose memories fail them, (and many at the Treasury have indeed forgotten), gave up one of the most sought after positions in international banking: Vice president of the world's largest commercial banking group – Citibank. In this position Professor Stanley Fischer enjoyed great prestige, status and remuneration that by far exceed what may be offered for the primarily political role of World Bank president.
Although the title "World Bank" may sound impressive, it is after all just a medium sized bureaucratic institution in Washington that grants subsidized credit to third world countries. The World Bank is not really global, and its global influence is very limited. The former president of the bank James D. Wolfensohn, a Jew in every respect, devoted most of his time and energy to frequent visits to Israel and the Palestinian Authority. His successor Paul Wolfowitz, also a Jew, tried to reinstate the prestige it had enjoyed during the 80s, but failed to do so and ultimately got himself entangled in an affair just like a young boy with stars in his eyes.
Numerous Israelis have worked at the World Bank in the past. Stanley Fischer did so for a short period between 1988 to 1990 in the dual position of World Bank vice president and chief economist. Professor Michael Bruno moved to the top brass of the World Bank and replaced Fischer, after completing his term as the governor of the Bank of Israel. Knesset member Professor Avishay Braverman, prior to becoming the dean of the Ben Gurion University, also held key posts at the World Bank.
The idea to appoint an Israeli citizen to the post of World Bank president is currently being pondered in the Economist only. In face of the delicate political assignments that rest on the shoulders of the World Bank president in third world countries, including those that do not have diplomatic ties with Israel, it is rather difficult to imagine that this idea will develop any further.
Just gossip
What's more, incumbent president Paul Wolfowitz has not yet resigned. Therefore, there is no basis to the deliberations on Fischer being a "leading candidate," there is only recycled gossip.
Yet there is also no doubt that many people in the white glass building of the World Bank in Washington - established in the latter part of the Second World War - would like to see Professor Stanley Fischer taking up the post at the World Bank and reinstating its former glory. They know him well, from the time when Fischer headed the International Monetary Fund's department for economic research, an institution affiliated with the World Bank, located across the street.
Professor Stanley Fischer officially began his five-year term as the governor of the Bank of Israel two years ago. Recently, he bitterly spoke to friends about the period that had elapsed; A major part of the objectives he had set himself have not been achieved; a new Israel Bank bill has not been legislated; a work agreement has not been signed at the bank; the relations between the bank and the Treasury have not been settled, and there's more.
Fischer was confronted with Israel's unfamiliar reality; aggressiveness, bureaucracy and unrestrained and uninspiring manipulation. Finance ministers came and went and officials conspired against him. Only the Israeli economy served as a source of pride for him. Growth, surpluses, stability, and foreign investments – Fischer is proud of these achievements.
It's not the tempting offers that may or may not be forthcoming from the World Bank that will lure Stanley Fischer back to America. That's small fry: He relinquished far greater income and status when he chose to realize his Zionist dream by coming to Israel. It’s not what’s happening across the ocean that will lure him back, but rather, what's happening here that may make him leave.
