World Bank meet ends as members seek reform

Singapore, Sep 20 (UNI) The International Monetary Authority/World Bank Group annual meetings today ended in Singapore with member countries supporting the IMF reform programme, agreeing to increase the voting quota of emerging economies of China, South Korea, Turkey and Mexico.

An overwhelming 90.6 per cent votes from the 184-member IMF agreed to increase in the voting quota for the four countries. The IMF hence will be working on the second stage of reforms to revise the quota formula and increase the voice and representations of emerging economies in the Fund, widely perceived to be dominated by the Western countries.

More than 3,400 delegates attended the week-long IMF/WB meetings and seminars, which reviewed the global economy and discussed ways to help poor people and weak nations, especially helped develop the African economies.

Among the highlights were discussions on good governance and anti-corruption as well as resumption of the Doha Round negotiations.

IMF Managing Director Rodrigo de Rato welcomed the overwhelming support given by member countries to support reform of quotas and voice in the Fund, and assured delegates of his commitment to work with members and bring the second stage of reform of quotas and voice to fruition soon.

The World Bank President Paul Wolfowitz also promised to work towards giving members more voice in the governance of its organisation and called on member countries to implement the multilateral debt relief initiatives to help the poor countries.

Mr Wolfowitz reaffirmed that actions to promote good governance were crucial to successful economic development and poverty reduction, which was important for the Bank to achieve its Millennium Development Goals.

''We support the second stage of reform plan proposed by the IMF managing director. The new formula should be simpler and more transparent to enhance the voice of low-income countries and basic votes should be significantly increased,'' China Central Bank Governor Zhou Xiaochuan said.

With the reforms, China would become the sixth most powerful member of IMF after the United States, Japan, Germany, France and the United Kingdom.

South Korea's Finance Minister Okyu Kwon said the increase of voting quotas would send a strong message to the global community that the IMF was on the right track to achieve its governance reform.

South Korea has planned a three-fold increase in its overseas development assistance to Africa by 2008.

Turkey, with its voting quota set to go up to 0.55 per cent from 0.45, would be hosting the 2009 IMF/WB annual meetings in Istanbul.

UNI XC SBA HT1850