The World Bank’s 186 shareholders have agreed to increase the voting power of developing nations and boost the bank’s capital by USD86 billion.
The Development Committee, a forum of the World Bank and International Monetary Fund, has endorsed an increase of the voting power of developing and transition countries in the World Bank’s International Bank for Reconstruction and Development by 3.13 percent to 47.19 percent.
“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. In a period when multilateral agreements between developed and developing countries have proved elusive, this accord is all the more significant,” World Bank President Robert Zoellick said.
The committee has also endorsed a capital hike of USD86.2 billion for IBRD and a reform of loan maturity terms, which will be further discussed at an integrated financial review in June 2010.
A selective capital increase of USD200 million for the International Finance Corp., the World Bank’s private sector arm, has also been endorsed. Developing nations’ voting powers at IFC would also go up to 39.48 percent.
The committee called on World Bank management to speed up the process of drafting the resolutions to implement the voice reform and capital packages so they may be submitted to the IBRD and IFC boards of governors by the end of June 2010.
The bank has also unveiled a post-crisis strategy, which focuses on the poor and vulnerable, particularly in sub-Saharan Africa, agriculture and infrastructure investments, a global coordinated response in dealing with climate change, trade, agriculture, food security, energy, water and health, good governance and anti-corruption.