US, EU need to cede power at IMF, World Bank
Washington,
Apr
21:
The
United
States
and
the
European
Union
need
to
bow
to
global
economic
reality
and
--
for
their
own
good
--
give
up
their
leadership
monopolies
at
the
World
Bank
and
the
International
Monetary
Fund,
a
non-partisan
US
policy
group
said
yesterday
in
a
report.
''What
the
US
and
the
EU
really
need
to
do,
in
a
major
way,
is
to
recognize
the
shift
of
economic
power,
of
energy
power,
of
GDP
power
to
Asia
and
Latin
America
and
the
emerging
economies,''
former
U.S.
Deputy
Treasury
Secretary
Stuart
Eizenstat
told
reporters,
outlining
the
report
from
the
Atlantic
Council
of
the
United
States.
Eizenstat,
who
served
in
the
Democratic
administration
of
former
President
Bill
Clinton,
and
Grant
Aldonas,
a
former
commerce
undersecretary
in
President
George
W
Bush's
Republican
administration,
co-chaired
the
Atlantic
Council
commission
that
produced
the
report.
It
looks
at
how
to
reinvigorate
US
and
EU
leadership
in
response
to
the
rise
of
China
and
other
economic
powers
in
the
developing
world.
It
comes
as
the
United
States
prepares
to
host
EU
leaders
at
an
annual
summit
on
April
30.
''The
world
is
passing
us
by
every
day
and
we
don't
realize
it.
We
still
think
we're
the
dominant
powers
and
we
are
to
a
point.
But
the
world
is
shifting,''
Eizenstat
said.
The
United
States
and
EU
need
to
shift
and
make
global
institutions
like
the
IMF
and
the
World
Bank
more
representative
of
their
broader
membership,
Eizenstat
said.
''If
the
Europeans
and
the
US
don't
do
this,
we're
going
to
forfeit
our
world
economic
leadership''
as
other
countries
grow
increasingly
frustrated
with
current
multilateral
institutions
and
create
regional
rivals,
he
said.
The
call
for
change
at
the
sister
institutions
comes
as
the
IMF's
membership
weighs
changes
to
its
voting
system
to
give
developing
countries
more
say
in
its
policies.
The
Atlantic
Council
report
recommends
the
EU
and
the
United
States
give
up
their
longstanding
monopoly
on
appointing
the
heads
of
the
IMF
and
World
Bank,
respectively.
That
recommendation
is
without
reference
to
current
demands
for
World
Bank
President
Paul
Wolfowitz
to
resign
over
his
handling
of
a
promotion
for
his
girlfriend,
both
Eizenstat
and
Aldonas
said.
The
United
States
and
the
EU
should
convene
a
meeting
of
major
and
emerging
economic
powers
to
chart
the
future
of
the
World
Bank
and
IMF,
with
a
goal
of
merging
the
two
institutions
by
2030,
the
report
said.
The
report
also
calls
for
the
United
States
and
EU
negotiate
a
series
of
investment
and
trade
agreements
leading
to
a
barrier-free
trans-Atlantic
marketplace.
It
urges
completion
of
the
Doha
round
of
world
trade
talks,
but
says
future
negotiations
need
to
shift
to
a
more
flexible
format
because
of
the
difficulty
of
getting
150
World
Trade
Organization
members
to
reach
agreement.
''We're
basically
saying
the
era
of
the
multilateral
round
is
over
after
Doha,''
Eizenstat
said.
Reuters