World Bank Group members, including India, have endorsed boosting its capital by more than $86 billion and giving developing countries a little more voice in running the affairs of the 186-member institution.
The changes announced on April 25 bring about a 3.13 percentage-point shift in favor of the developing countries giving them just over 47.19 percent of the total votes, while advanced eco-nomies’ share of the total falls to just under 52.81 percent.
India, which has been demanding an “adequate voice in the way this institution is run” for developing countries has expressed satisfaction over the Bank’s new shareholding pattern that “may not be the perfect arrangement” saying “the best cannot become the enemy of the good.”
But Ashok Chawla, secretary, Department of Economic Affairs, who represented India, told the Bank’s steering Development Committee that for the future, economic weight must be based on a blend that gives more weight to their output and purchasing power to reflect the changing dynamism of the global economy.
The bulk of the vote increases went to emerging powers, while the world’s poorest nations’ will have to wait till the next review of voting rights in 2015.
China was the biggest gainer, its vote share rising from 2.77 percent to 4.42 percent, making the Asian giant the third most influential member of the World Bank behind the US and Japan. Germany, Europe’s largest economy, fell to fourth place.