The World Bank and Luxembourg

 

Luxembourg is a founding member of the International Bank for Reconstruction and Development (IBRD). It is also a member of the International Development Association (since 1964), the International Finance Corporation (1956), the Multilateral Investment Guarantee Agency (1991) and the International Centre for Settlement of Investment Disputes (1970).

Like all 187 member countries of the World Bank Group, Luxembourg is represented in its governing councils by a Governor and an Alternate Governor who, with their peers, hold ultimate decision-making power. The Minister of Finance, Mr. Frieden, serves as Luxembourg's Governor for the World Bank and Mr. Georges Heinrich, Director of the Treasury at the Ministry of Finance, serves as Alternate Governor.

Because these officers meet only once a year to decide on key actions such as admitting new members or changing the authorized capital stocks, they delegate responsibility for overseeing the day-to-day business of the institutions to their designated representatives on the Executive Board. These Board members, called Executive Directors, reside in Washington and meet regularly throughout the year (normally at least twice a week) to review and act on lending operations, new policy directions, and financial matters. In keeping with the World Bank's information disclosure policy, the monthly Board Calendar is now a public document and can be consulted here.

The 25-member Executive Board is made up of five Executive Directors who are appointed by the five largest shareholders and 19 others who are elected by groups of countries to represent their interests. In the context of World Bank Reform, the Bank is continuously looking to enhance its legitimacy and to promote inclusiveness, innovation, efficiency, effectiveness, and accountability. In April 2010, the Development Committee of the World Bank and IMF Boards of Governors endorsed a historic 3.13 percent shift in voting power for developing countries, to 47.19 percent for IBRD, aiming at 50 percent over time. It puts China's share behind that of the United States and Japan, but above large European countries such as Germany, the UK and France, reflecting its status as the world's third-largest economy.

Luxembourg shares its Board representation with, Belarus, Belgium, the Czech Republic, Hungary, Kazakhstan, The Slovak Republic, Slovenia, and Turkey. The Executive Director for this group is rotated and is currently held by Konstantin Huber, an Austrian national. The position of Alternate Executive Director is held by Mr. Gino Alzetta, a Belgian national. For more information, click here.