WASHINGTON, April 14: Outgoing World Bank President James Wolfensohn was named on Thursday as an international “special envoy” to help coordinate economic and political aspects of Israel’s planned withdrawal from the Gaza Strip.

US Secretary of State Condoleezza Rice said his task would include reviving the Palestinian economy and issues like the fate of Israeli housing blocks if Israel carries out its plan to evacuate all 21 settlements in Gaza and four of 120 settlements in the West Bank.

Condoleezza Rice made the announcement on behalf of the “quartet” of Middle East peace mediators that includes the United States, the European Union, Russia and the United Nations and said Mr Wolfensohn would report to that group.

She said he would try to rebuild Israeli-Palestinian trust. “The parties have shown good faith and political courage in recent months. But the obstacles before them remain substantial,” she said.

President George Bush has embraced Israeli Prime Minister Ariel Sharon’s “disengagement plan”, which could begin with the evacuation of some Jewish settlements in July.

The Bush administration has been criticized for not taking a more active role in Middle East peace-making. —Reuters