Jaitley calls for reforms in World Bank at global meet
October 11, 2015  19:36
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Finance Minister Arun Jaitley has made a strong case for raising shareholding of developing nations including India in the World Bank Group to reflect their share in the global economy and demanded a significant hike in the capital to meet growing financing needs.

Stating that the demand for development finance continues to be very strong, he quoted a bank's report admitting inability to support elevated levels of lending beyond 2018.

IFC -- an arm of the World Bank -- is already capital constrained. Also, there is the additional challenge of mobilising over US $100 billion per year for climate finance.

Speaking at the plenary meeting of the development committee in Lima, he emphasised the need for bigger financing and implementation plans by the World Bank Group to achieve the Sustainable Development Goals.

India, he said, expects a dynamic formula for shareholding of World Bank to be finalised by Annual Meeting 2016. The formula should incorporate "elements which help enhance the voice, role and voting share of the developing countries and reflect their increased share in global GDP and their contribution to building the bank's reserves," he said.

Jaitley said as the share of the developing and transitioning countries in the world GDP increases from 39 per cent in 2008-2010 to 49 per cent in 2013-15, "the shareholding realignment should reflect the same and be completed by 2017".

The development committee is the ministerial-level forum of the World Bank Group and the IMF for intergovernmental consensus-building on development issues. Jaitley represented the constituency consisting of the countries -- Sri Lanka, Bangladesh, Bhutan and India.
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