SALVADORAN APPOINTED WORLD BANK MANAGING DIRECTOR

UNCLAS SAN SALVADOR 001085 SIPDIS SENSITIVE SIPDIS STATE PASS USAID E.O. 12958: N/A TAGS: IBRD PINR ECON EAID EFIN ES SUBJECT: SALVADORAN APPOINTED WORLD BANK MANAGING DIRECTOR Summary -------------- ¶1. On April 21, 2006, World Bank President Paul Wolfowitz named Salvadoran Juan Jose Daboub as a Managing Director of the World Bank. Daboub was one of ex-President Flores' most trusted advisors, and he served as Chief of Staff and Minister of Finance during Flores' term from 1999-2004. He is known as a loyal defender of the Washington Consensus, and in El Salvador he promoted privatization, free markets, and dollarization. Daboub studied industrial engineering at North Carolina State and has extensive private sector experience. End Summary. U.S. Educated Engineer -------------- ¶2. Daboub is a graduate of the high school Liceo Salvadoreno in San Salvador. In 1985 he received a Bachelor of Science in Industrial Engineering, in 1987 a Master of Science in Industrial Engineering, and in 1989 a Doctorate in Industrial Engineering--all from NC State. While at NC State, he was a Research Engineer from 1984 to 1989 and a Teaching Assistant from 1985 to 1989. Manufacturing and Privatization Guru -------------- ¶3. After completing his studies, Daboub returned to El Salvador and became Vice-President of INCOMES/CISMAN (International Consultants in Manufacturing and Engineering Systems),a position he held from 1989 to 1995. Daboub and his family founded several businesses over the past several decades, including Productos Dioro (a bakery),Emplaza (plastic packaging),Distribuidora Santa Elena (food distributor) and DABCO (retail candy stores); he has held numerous management positions at those firms. As a consultant on manufacturing practices and processes, he has provided advisory services to numerous U.S. and Salvadoran companies. ¶4. From 1992 to 1996 Daboub simultaneously served on the boards of directors of several state-owned electricity generation and distribution companies, and he used those positions to push forward privatization of the electricity sector in El Salvador. Privatization of the electricity sector earned the government $1.12 billion in proceeds from asset sales, and electricity prices are now among the lowest in the region. Daboub was also a proponent of telecommunications privatizations, serving as President of the state-owned ANTEL from 1996 to 1998 and President of INTEL, an ANTEL spin-off, in 1998. He also was President of telecommunications firm Estrategas from 1998 to 1999. As a consultant, he provided advisory services to CTE-France Telecom in El Salvador during its takeover of state-owned ANTEL. Super Minister Daboub -------------- ¶5. From 1999 to 2004, Daboub was one of President Flores' most trusted advisors, and was popularly called the "Super Minister" due to his extensive influence, particularly on government modernization, economic policy and the budgeting. Flores named Daboub Chief of Staff when he took office, but in May 2001 he became Finance Minister--while retaining his former duties as Chief of Staff. He is known as a loyal defender of the Washington Consensus, and in El Salvador he promoted privatization, free markets, and dollarization. When Flores finished his term, Daboub became Executive Director of the America Libre Institute (ILA) in Washington, an effort headed by ex-President Flores. Personal -------------- ¶6. (SBU) Daboub was born in San Salvador on July 4, 1963. He is married to MIT-educated Glorybel Silhy de Daboub. They have two children, a boy Juan Jose and one girl Sofia Maria, and are expecting a third. Embassy officers characterize Daboub as friendly and approachable, but serious about his work. He is known as a careful decision- maker who takes into account the political context in which he operates. Please visit San Salvador's Classified Website at http://www.state.sgov/p/wha/sansalvador/index .cfm. Barclay