World Bank pledges to strengthen developing countries'voice

by Xinhua writer Li Qi

ISTANBUL, Oct. 5 (Xinhua) -- Central bank governors and finance ministers agreed to give developing countries a bigger voice in the World Bank by increasing their voting power by at least 3 percent.

Boards of governors of the World Bank and the International Monetary Fund (IMF) jointly held the 80th meeting of the Development Committee ahead of the World Bank and IMF annual meetings, with enhancing voice and participation of developing countries in the 186-nation World Bank high on its agenda.

INCREASING VOTING POWER

During the meeting, officials reaffirmed a significant increase of at least 3 percent of voting power for developing countries in World Bank.

"We stressed the importance of moving towards equitable voting power in the World Bank over time through the adoption of a dynamic formula which primarily reflects countries' evolving economic weight," said a communique issued after the meeting.

"While recognizing that over-represented countries will make a contribution, it will be important to protect the voting power of the smallest poor countries," it added.

Last month, the Group of 20 (G20) countries agreed in Pittsburgh to increase developing countries' voting power in the World Bank and IMF by at least 3 percent and 5 percent separately, a major move to improve the international organizations' legitimacy and effectiveness.

The Development Committee agreed in October 2008 to increase the voting power of developing countries in the International Bank for Reconstruction and Development (IBRD) by 1.46 percent in the first phase of reform. It agreed this April to accelerate work on the second phase of reform and reach an agreement by the 2010 Spring Meetings.

The IBRD is the World Bank's institution that provides loans, guarantees, risk management products and analytical and advisory services to reduce poverty in middle-income and creditworthy poorer countries.