World Bank Governors endorsed a capital increase for the International Bank for Reconstruction and Development, a shift in shares to increase the voting power of developing countries, and a post-crisis strategy and reform programme.
At the Spring Meetings, World Bank Governors endorsed a capital increase for the International Bank for Reconstruction and Development (IBRD), a shift in shares to increase the voting power of Developing and Transition Countries (DTCs) by 3.13%, and a post-crisis strategy and reform programme for the Bank.
The capital increase, the Bank’s first in 22 years, will allow it to continue to support developing countries affected by the financial crisis and into the future. The capital increase is $86.2 billion, of which $5.1 billion is paid in.
The shift in voting power to DTCs brings their share to 47.19%. Shareholders also committed to establish a roadmap for agreeing a dynamic formula moving over time towards equitable voting power and protecting the voting power of the smallest poor countries.
The post-crisis strategy and corporate and operational reform programme should improve the Bank’s effectiveness and accountability. World Bank Governors will review progress when they next meet, at the Annual Meetings in October 2010.
World Bank Governors also endorsed voting reform at the International Financial Corporation (IFC), the part of the World Bank Group that invests in the private sector in developing countries. The voting shares of DTCs increased by 6.07%, bringing their total share to almost 40%.