The 186 countries that own the World Bank Group on Sunday endorsed boosting its capital by more than $86 billion (481 milliarder d. kr.).
They also gave developing countries more voting power upon decisions of the World Bank.
It is the first general capital increase for the World Bank for more than 20 years and a historic shift in voting power to developing countries
The Development Committee of the Board of Governors also backed the Bank’s new post-crisis strategy, and a comprehensive reform package to make the Bank faster, more flexible, and more accountable.
The main components of the package are:
FLERE PENGE
· An increase of $86.2 billion (knap 481 milliarder d. kr.) in capital for the International Bank for Reconstruction and Development (IBRD), the arm that lends to developing countries.
· A $200 million (1,2 milliarder d. kr.) increase in the capital of the IFC, the World Bank Group’s private sector arm, as part of an increase in shares for developing and transition countries. IFC will also, subject to board approval, consider raising additional capital through issuing a hybrid bond to shareholding countries and through retaining earnings.
MERE MAGT TIL U-LANDE
· A 3.13 percentage point increase in the voting power of Developing and Transition countries (DTCs) at IBRD, bringing them to 47.19 percent — a total shift to DTCs of 4.59 percentage points since 2008. This increase fulfills the Development Committee commitment in Istanbul in October 2009 to generate a significant increase of at least 3 percentage points in DTC voting power.
· An increase in the voting power of Developing and Transition Countries at IFC to 39.48 percent — a total shift to DTCs of 6.07 percentage points.
· An agreement to review IBRD and IFC shareholdings every five years with a commitment to equitable voting power between developed countries and DTCs over time.
SIKRER BANKENS EKSISTENSBERETTIGELSE
At the closing press conference, Bank President Robert Zoellick said endorsement of the shift in voting power was crucial for the Bank’s legitimacy.
– We need to consign outdated concepts like ‘Third World’ to the history books, he added.
VIGTIGT I EN TID MED BRUDTE AFTALER
– This extra capital can be deployed to create jobs and protect the most vulnerable through investments in infrastructure, small and medium sized enterprises, and safety nets, Zoellick said.
– In a period when multilateral agreements between developed and developing countries have proved elusive, this accord is all the more significant, he stressed.
