Ashraf Ghani has emerged as the bookmakers’ favourite to replace Paul Wolfowitz as World Bank President, a move that would make him the first non-American to run the global lender in its 60-year history.

Ladbrokes was offering odds yesterday of 4-5 on Mr Ghani, the man credited with overhauling the economy of Afghanistan by carrying out extensive reforms, including issuing a new currency and balancing the budget after the overthrow of the Taleban.

However, Americans Robert Zoellick, a former Deputy Secretary of State, and Robert Kimmitt, Deputy Treasury Secretary, are seen by many as more likely appointments for the job than Mr Ghani or Ngozi Okonjo-Iweala, Nigeria’s former Finance Minister.

The World Bank Group Staff Association, which represents the bank’s 10,000 employees on matters such as compensation and benefits, yesterday said that the bank should seriously consider non-American candidates for the presidency.

Alison Cave, the association’s chairman, said: “The time has come for us to look for the best candidate, no matter where they are. We are a global institution and it is not reasonable only to consider one nationality.” She added: “Candidates not just in Europe, but across the world, of either gender, should be considered. It doesn’t make sense for it to be otherwise.” Ms Cave declined to comment on Mr Ghani.

Tensions continued to mount at the World Bank yesterday after its staff accused their board of further damaging the institution’s reputation by allowing Mr Wolfowitz to save face by showering him with praise as he resigned.

Mr Wolfowitz quit on Thursday night after his negotiation of a pay rise for his girlfriend proved to be the last straw in a controversial presidency and lost him the support of every major world leader apart from President Bush.

However, the World Bank’s board accompanied his resignation with a statement that cited a long list of achievements in his two-year tenure and thanked him “for his leadership and for championing the Bank’s work across so many areas”.

In his own statement, Mr Wolfowitz said that he was pleased the board had “accepted my assurance that I acted ethically and in good faith in what I believed were the best interests of the institution”.

The bank’s staff association reacted furiously to the board’s statement. “While Mr Wolfowitz has finally done the necessary thing by resigning, he has damaged the institution and continues to damage it every day that he remains as its president,” the association said.

“He has demeaned the bank, insulted the staff, diminished its clients and dragged this institution through the mud.”

The association went on to lambast its board for caving into a deal to help Mr Wolfowitz by making a “statement of gratitude” to help to save his credibility in return for his resignation.

“They have attempted to save his face and in so doing have destroyed that of the institution they are entrusted to protect,” the association said. “The World Bank needs to rebuild its credibility immediately, regain its focus and devote its full attention to its clients. This cannot be done while Mr Wolfowitz remains in his position as president.”

World leaders agree on the need to name a replacement for Mr Wolfowitz, who steps down on June 30, as soon as possible.

The US has always picked the World Bank President and Henry Paulson, America’s Treasury Secretary, said yesterday that he would consult with foreign governments and pick a handful of candidates for Mr Bush to choose from as quickly as possible. Mr Paulson himself, and Bill Frist, a Republican senator from Tennessee, are among the other candidates tipped as potential Presidents.

Peer Steinbrück, the German Finance Minister, said: “It will now be important not to focus on the past but to rebuild the reputation of the World Bank and its ability to function as quickly as possible.”

Mr Wolfowitz’s position became untenable after an ethics panel found him guilty on Monday of breaking institution rules over the $50,000 a year, tax-free pay rise he negotiated for Shaha Riza, his British girlfriend.

Competitors in race for top spot

Ashraf Ghani (odds 4-5) Would be break with tradition as first Muslim and first non-American to hold post. World Bank old-timer was Afghan Finance Minister after the overthrow of the Taleban, carrying out extensive reforms. Like Mr Wolfowitz, not known for suffering fools gladly

Ngozi Okonjo-Iweala (5-2) Former Nigerian Finance Minister and Foreign Minister who would be the first woman (and nonAmerican) elected. Harvard and MIT-educated, former vice-president of World Bank and a fellow at the Brookings Institution, a Washington think-tank

Robert Zoellick (7-2) Former US Trade Representative and Deputy Secretary of State, he has wide experience of international economic diplomacy. Logical choice to smooth troubled waters

Robert Kimmitt (5-1) Deputy US Treasury Secretary seen as safe pair of hands. Decorated Vietnam veteran and lawyer. Ambassador to Germany under first President Bush

Stanley Fischer (14-1) World Bank’s former chief economist and a previous deputy head of the International Monetary Fund. Became governor of the Bank of Israel in 2005 and gave up his US citizenship; persistent rumours of interest in top job at World Bank have provoked opposition in Israel

John Bolton (16-1) President Bush could appoint him as US ambassador to the UN only on a temporary basis in the face of a hostile Congress. Forthright approach would throw oil on to the fire at the World Bank and would indicate the depths of the White House’s intransigence. Unlikely choice

Tony Blair (25-1) Formerly influential UK-based political activist. Keen to find way to pay large mortgage on London townhouse. Lacks Treasury experience and is rumoured not to want the job. Outside bet at best

Odds: Ladbrokes

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts