The World Bank's Real Problem

Yes, Paul Wolfowitz got his girlfriend a raise, but the World Bank really needs to figure out why it still exists

Jonathan Ernst / Reuters

World Bank President Paul Wolfowitz stands offstage as he waits for the start of the inaugural meeting of the Reformers Club in Washington

The World Bank is undeniably in crisis. But not because its president, Paul Wolfowitz, got his girlfriend a raise.

It is the Wolfowitz saga that has been grabbing all the headlines, of course. The Iraq-war architect was plucked from the Defense Department and deposited by President George W. Bush at the World Bank in 2005 (by tradition, the U.S. President picks the bank's chief). At the time, Wolfowitz informed the bank's ethics committee that he was seeing Shaha Riza, a communications adviser at the bank, and the in-house ethicists told him she should be moved to another agency and given a...