China given bigger role in World Bank
28 April 2010 | 
Author: Professor |
The Associated Press 25 April, 2010
Recognizing China's growing economic influence, the World Bank agreed Sunday to elevate Beijing's voting power to behind only the United States and Japan in the 186-nation lending organization. Lifting China above a number of Western powers —including Germany, France and Britain — also gives other nations with emerging economies greater say in how the bank operates and lends money.
Bank members also decided to increase the institution's capital by $3.5 billion US — the first increase in more than 20 years.
China's stake at the bank, in terms of voting power, climbs to 4.42 per cent from 2.78 per cent. The U.S., the world's largest economy, remains in the top spot at 15.85 per cent, effectively giving it veto power, followed by Japan at 6.84 per cent.
Countries such as China, Brazil, India and Russia long have complained about the dominance of the United States and European nations in the bank's decisions.
Under an informal agreement dating to the end of the Second World War, an American is president of the bank and a European leads its sister institution, the International Monetary Fund.
Robert Zoellick, the bank's president, said at a news conference that the shift in voting power "recognizes that we need to consign outdated concepts like 'Third World' to history. Today the world is moving toward a new, fast evolving multipolar economy."
Speaking after a meeting of the bank's policy-setting development committee, Zoellick said countries with emerging economies are critical sources of demand in the global economic recovery under way and over time "can become multiple poles of growth."
Zoellick said the capital increase "means that we will no longer face the possibility that we would have to cut back our lending later this year."
He said the bank has provided $105 billion US in financial support to its members since the financial crisis began to bite in July 2008.
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