World Bank gets $3.5 billion boost in new capital

[ZeitgeistObserver]

World Bank gets $3.5 billion boost in new capital

Additional resources come with shift in voting clout that propels China to place among institution’s most powerful shareholders
Kevin Carmichael

Washington — Globe and Mail Update
Published on Sunday, Apr. 25, 2010 3:06PM EDT

Last updated on Sunday, Apr. 25, 2010 3:18PM EDT


Countries pledged $3.5-billion (US) in new capital for the World Bank and realigned voting shares in an historic shift that reflects the growing clout of emerging market nations in guiding the global economy.

Last autumn in Istanbul, World Bank President Robert Zoellick called on the world’s major economies for more money, saying increased demands on his institution as a result of the financial crisis risked pushing him to the limits of what he can lend with existing capital.

~snip~

In a realignment aimed at reflecting the larger role emerging markets play in the world economy, China’s shares in the World Bank’s main lending arm increased to 4.42 per cent from 2.77 per cent, the third-biggest after the United States and Japan.

The U.S.’s shares represent 15.6 per cent of the total and Japan’s equal 6.8 per cent.

To make room for China and other emerging players, such as South Korea, whose voting shares increased to 1.57 per cent from 0.99 per cent, established powers had to accept a cut. The clout of France, Germany, Britain, Italy and Canada all diminished under the change.

http://www.theglobeandmail.com/report-on-business/world-bank-gets-35-billion-boost-in-new-capital/article1546145/