THE race to take over one of the most powerful jobs in international development began yesterday after confirmation that James Wolfensohn will step down as president of the World Bank.

Sources confirmed that, after ten years at the helm of the institution, Mr Wolfensohn has told the bank’s board that he will retire at the end of May.

The departure of Mr Wolfensohn, a charismatic figure who has transformed the World Bank’s operations, is likely to trigger protracted wrangling over the succession.

Mr Wolfensohn had hinted that he was keen to serve another five years. But his departure comes amid indications that the Bush Administration wants to install its own man.

In a note to the World Bank’s board, Mr Wolfensohn said: “I would like to retire at the end of my term and would suggest that the board seek a new president . . . ”

He is also understood to have spoken with John Snow, the US Treasury Secretary, before leaving for Indonesia last night to attend a summit of countries that were hit by the Asian tsunami.

Leading candidates to take over are thought to include Robert Zoellick, the US Trade Representative.

By custom, the World Bank’s presidency is in the gift of the US Government. But sources expect that Washington will bow to pressure for a more open international selection process.

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