MercoPress. South Atlantic News Agency

IADB set for battle over leadership

Enrique Iglesias is expected to present his resignation as president of the Inter-American Development Bank this week, triggering what will be a hotly contested battle for leadership of the western hemisphere's most important multilateral development institution.

Uruguayan Mr Iglesias, who is now 74 and in his 17th year at the bank, has been tipped to leave this year and candidates to succeed him have been jockeying for position for some months.

Even so, the election that will take place this summer will be fiercely fought, highlighting divisions between the US on the one hand and some of the largest countries in South America on the other.

Difference between the US and South America also came to the fore earlier this year in elections to choose a successor to the Organisation of American States. Jose Miguel Insulza, the Chilean socialist, was eventually elected by a virtual consensus but only after two candidates backed by the US had both pulled out of the race.

At the IADB, Brazil will support the candidature of Joaao Sayad, currently serving as one of two vice-presidents at the bank, while the US is likely to back Luis Alberto Moreno, the Colombian ambassador to Washington. Enrique Garcia, a Bolivian who is the head of the Andean Development Corporation, a separate multilateral lender, is also tipped to enter the race, as is Roberto Danino, the former Peruvian prime minister.

The IADB election will be more complex than the contest at the OAS, in which each of the 34 member countries had one vote each. At the bank, a successful candidate must win a majority both of individual country members and more than 50 per cent of the shares. Since the US owns about 30 per cent of the bank's equity it will have disproportionate influence on the outcome, although IADB insiders doubt that Washington will be able to secure a majority among individual members.

This scenario may well favour the chances of a candidate such as Mr Garcia or Mr Danino.

Mr Iglesias was invited at the weekend to become secretary general of the Ibero-American summit organisation, a body that organises meetings between leaders from Spain, Portugal and Latin America.