Developing countries get more say in World Bank functioning

Lalit K Jha
Washington, Apr 26 (PTI) Emerging economies, including
China and India, were given a greater voice at the World Bank,
as member nations approved a slight shift of voting shares in
favour of developing countries, while agreeing to raise more
money for global aid.
The World Bank and The International Monetary Fund (IMF)
concluded their annual spring meeting here by increasing the
voting rights of India, China and Brazil, among others, thus
giving them more say in the institutions' functioning.
This represents a total shift of 4.59 per cent to
developing and transition countries since 2008, the IMF and
the World Bank said in a joint communique after the meeting.
As a result, India's voting power increased from 2.77 per
cent to 2.91 per cent while China whose rights increased from
2.77 per cent to 4.42 per cent was the biggest benefactor.
The shift places India at the seventh biggest place after
the United States (15.85 per cent), Japan (6.84 per cent),
China, Germany (4 per cent), France (3.75 per cent) and the
United Kingdom (3.75 per cent).
"The change in voting-power helps us better reflect the
realities of a new multi-polar global economy where developing
countries are now key global players," said World Bank
President Robert B Zoellick.
The change gives emerging nations more say in how the
bank is run and how its funds are disbursed.
"This change in voting share, giving developing countries
over 47 per cent, is a significant step," he told reporters
here, hoping shareholders will review the approach in 2015.
Membership of the financial institution gives certain
voting rights that are the same for all countries, but there
are additional votes which depend on a country's financial
contributions to the organisation.
Zoellick said at a time when multilateral agreements
between developed and developing countries have proved
elusive, this accord is all the more significant.
This increase fulfills the Development Committee
commitment in Istanbul in October 2009 to generate a
significant increase of at least 3 percentage points in
Developing and Transition Countries (DTCs) voting power.
"We, in calculating this, looked at size of the world
economy, using purchasing power but also exchange rate
measures, but also, as a development institution, the
contribution to development including the contribution to IDA,
our fund for the poorest".
The governments also approved over USD 90 billion in
extra money for the World Bank's various arms that provide aid
and capital to member countries.
Zoellick said the shift in voting powers was designed to
try to reflect past contributions, citing the example of Japan
that has been "a very gracious contributor". (MORE) PTI LKJ
MRD


The information contained in this electronic message and any attachments to this
message are intended for the exclusive
use of the addressee(s) and may contain proprietary, confidential or privileged
information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please
notify the sender immediately and destroy
all copies of this message and any attachments contained in it.



Delete & Prev | Delete & Next