China gains more clout in World Bank decisions
Source: Agencies/Shanghai Daily |
April 27, 2010, Tuesday
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Print Edition
Print Edition
THE World Bank has elevated China's voting power to behind only the United States and Japan in the 186-nation lending organization.
Lifting China above a number of Western nations, including Germany, France and Britain, gives other emerging economies more voice in how the bank operates and lends money.
World Bank members also decided to increase its capital by US$3.5 billion, the first lift in more than 20 years.
China's stake at the bank, in terms of voting power, climbs from 2.78 percent to 4.42 percent.
The US remains No. 1 at 15.85 percent, giving it veto power, followed by Japan at 6.84 percent.
Finance Minister Xie Xuren welcomed the change, saying it "represents an important step toward equitable voting power between developing and developed members."
The bank approved a 3.13 percent increase in the voting power of Developing and Transition Countries, making it 47.19 percent now and representing a total increase of 4.59 percentage points for DTCs since 2008.
"This demonstrates that the Development Committee can play a pivotal role in improving the World Bank's governance and promoting global development," Xie said.
But he said it was "only part of the ongoing process," noting that China supported reviews by the International Bank for Reconstruction and Development over member share-holding.
Countries such as China, Brazil, India and Russia have long complained about the dominance of the US and European nations.
Robert Zoellick, the bank's president, said that the shift in voting power "recognizes that we need to consign outdated concepts like 'Third World' to history. Today the world is moving toward a new, fast-evolving multipolar economy."
Speaking after a meeting of the bank's policy-setting Development Committee on Sunday, Zoellick said emerging economies were critical sources of demand in the global economic recovery and over time "can become multiple poles of growth."
Zoellick said the capital increase "means that we will no longer face the possibility that we would have to cut back our lending later this year."
He said the bank had provided US$105 billion in financial support to its members since the financial crisis began to bite in July 2008.
US Treasury Secretary Timothy Geithner said the bank "made a strong and compelling case" for the capital increase.
Geithner said he would seek approval of the American share - about US$117 million each year over five years - from Congress.
Lifting China above a number of Western nations, including Germany, France and Britain, gives other emerging economies more voice in how the bank operates and lends money.
World Bank members also decided to increase its capital by US$3.5 billion, the first lift in more than 20 years.
China's stake at the bank, in terms of voting power, climbs from 2.78 percent to 4.42 percent.
The US remains No. 1 at 15.85 percent, giving it veto power, followed by Japan at 6.84 percent.
Finance Minister Xie Xuren welcomed the change, saying it "represents an important step toward equitable voting power between developing and developed members."
The bank approved a 3.13 percent increase in the voting power of Developing and Transition Countries, making it 47.19 percent now and representing a total increase of 4.59 percentage points for DTCs since 2008.
"This demonstrates that the Development Committee can play a pivotal role in improving the World Bank's governance and promoting global development," Xie said.
But he said it was "only part of the ongoing process," noting that China supported reviews by the International Bank for Reconstruction and Development over member share-holding.
Countries such as China, Brazil, India and Russia have long complained about the dominance of the US and European nations.
Robert Zoellick, the bank's president, said that the shift in voting power "recognizes that we need to consign outdated concepts like 'Third World' to history. Today the world is moving toward a new, fast-evolving multipolar economy."
Speaking after a meeting of the bank's policy-setting Development Committee on Sunday, Zoellick said emerging economies were critical sources of demand in the global economic recovery and over time "can become multiple poles of growth."
Zoellick said the capital increase "means that we will no longer face the possibility that we would have to cut back our lending later this year."
He said the bank had provided US$105 billion in financial support to its members since the financial crisis began to bite in July 2008.
US Treasury Secretary Timothy Geithner said the bank "made a strong and compelling case" for the capital increase.
Geithner said he would seek approval of the American share - about US$117 million each year over five years - from Congress.
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