Development Committee endorses historic package of support for the World Bank
Gives developing countries more influence
Expands Bank’s capacity to provide finance while setting post-crisis strategy
Endorses comprehensive reform program
April 25, 2010—On the final day of the 2010 World Bank-IMF Spring Meetings, the Development Committee of the World Bank and IMF Boards of Governors endorsed an $86 billion boost in capital for the Bank and a historic shift in voting power for developing countries, to 47.19 percent for IBRD.
At the closing press conference, Bank President Robert Zoellick said endorsement of the shift in voting power was “crucial for the Bank’s legitimacy” and added that we need to “consign outdated concepts like ‘Third World’ to the history books.”
“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.”
Committee Chairman Ahmed bin Mohammed Al Khalifa, Minister of Finance, Kingdom of Bahrain, called the changes an “unprecedented renewal of the World Bank Group.”
He said the committee recognized that the crisis response had put stress on the Bank and said the package endorsed by the committee would help the Bank deliver a more effective strategy in a more transparent way.
“The Development Committee has endorsed a new World Bank Group for a new world,” he said.